Financial self-improvement basically seeks to relieve you of your financially stressful burden to deliver you to financial freedom or independence. When you talk of financial self-improvement, it’s obvious money will be involved. The discussion could reveal how money is saved; best ways to invest the money or even how to intelligently spend money; this makes money as a common denominator. Financial stress has risen as a result of job instability (which includes scarcity and frequent threats of layoffs) due to the economic crunch, consumerism, materialism and the financial over-extension of acquiring too much debt. Some of the stresses arise when one cannot meet their financial obligations, thus leaving them incapable of seeing a glimmer of hope or solutions for their problems. Questions mainly asked in such cases are: How can I get out of this financial quagmire and improve myself? WAYS TO IMPROVE FINANCIALLY
Organization: You need to organize yourself financially by first getting to know how much you have in your bank account, and if it’s enough to cover your credit cards to avoid accruing interests. You could also ensure that you spend less on the purchases you make; if quality is an issue for you, look for best bargains.
To make a mental inventory of what you already have and what you need to have, create a budget that is clearly written down, and follow it strictly; this will help you avoid spontaneous and impulsive buying – don’t be a spendthrift. Avoid buying things on a whim, but encourage shopping smart, looking for best discounts and sales. Simply put, spend less than what you earn.
You can start building up savings from your income (even if it’s a small amount); invest your money, and let your money work for you. By choosing a good, secure investment, you are letting your interest grow to improve your savings. Divide your money into portions, and keep one part as a ‘financial fortress ‘ which cannot be touched or spent for any reason.
Financial savings is what keeps your hope alive, and assures you of safety while it generates a steady income. You can use the generated interest, but the capital saved must be left intact – this is the power of emergency saving; it involves setting aside an amount of money to help solve impromptu incidences this gives you confidence of being in control and having things financially covered.
Setting yourself up this way financially, also takes away stress and encourages you on the path of saving to save regularly for emergencies; thereby allowing you to refrain from touching your interest, further allowing your interests to keep growing.
Take care to understand and be able to deal with the cost of maintenance for property you purchased. For instance, if it’s a car that you have purchased, can you maintain the cost of its repairs, insurance, fueling, and cleaning? Remember that the maintenance costs take up part of your savings, and so must be carefully thought through.
Learn financial Offense rather than Defense: This means that once you set up systems that help you manage your money, stick to it and move on to the next stage of how to bring in more money. You could do this through improving yourself at work for a higher salary, put up a business, and improve on entrepreneurial skills that can give you an edge above the rest in the competition. You can also resolve any outstanding debt you may have with collection agencies; but if a debt collector, like Arrow Financial Service, has an inactive website, you can still resolve your debt with the help of other credit repair forums or at http://DeleteBadCredit.org/Methods – and get debts quickly removed from your credit reports. Overall, when more money start to come in, stick to your lifestyle – for any change can poke more holes into the progress you’ve made. You can also improve your finances by simply cutting costs and downsizing or downgrading.
FINANCIAL SELF IMPROVEMENT AND PSYCHOLOGY
You need to first uncover, challenge and change self-defeating money beliefs (or any negative attitudes) to be able to make positive self-improvements. Negative attitudes or beliefs are learned in childhood, setting a unique relationship and understanding of money. The financial choices we make affect other areas of our lives, including physical, mental and relational health.
To address the physical, mental and relational aspects that are affected when it comes to money, you need to do the following:
Map out your financial history or background: It’s clear that our financial beliefs dictate how we use money today. So how does you past experiences affect how you spend or save your money? What are your most painful and joyful experiences with money? What attitudes formed from these experiences, and how beneficial they are to you?
Having a deeper understanding of your beliefs and feelings around money: You can revise or change your money attitude by talking to successful people, measuring their financial beliefs against yours; and model some of their behavior, to help you achieve a higher level of financial success much faster!