While many people don’t want to admit it, finance management is a huge part of our lives, but not many people know how to manage it.
In our consumer-laden society, people often find themselves spending more money than they earn. Prices are exceptionally high—the price of missing out or the price of becoming excluded can weigh heavily on the mind.
Many people pursue certain lifestyles because our society caters to the rich. It rewards individuals living lavishly beyond their means, at first. We covet individuals for their ability to spend excessive amounts of money, drive lavish cars, own large houses and lots of stuff. How many pairs of shoes does a person need? How many pairs of pants? T-shirts? I am sure not much.
The idea of saving money is just smart. Why spend money on additional consumer items I’m never going to see again when I can be saving it, putting towards appreciating assets and building wealth.
Generating financial goals puts finances at the forefront of the mind, allowing individuals to address their concerns head on. Do you fail to save a significant amount of money at the end of the month? It’s probably due to the way that you budget.
Financial Independence Takes Sacrifice
Becoming financially independent means reviewing expenses, cutting out what expenses aren’t necessary, sustainable, or appreciating; and, it means living frugally, budgeting, and knowing when to spend and when to save.
It’s simple to get started. Follow these three steps, and you’ll be well on your way to financial freedom.
- Write down your daily expenses. I use the Notes app on my iPhone 6. I just create a note titled, “Monthly Expenses,” and jot down my expenses as I go.
- Review your expenses, and then set new weekly, monthly, and quarterly budgets and goals. I like to input the data I’ve gathered throughout the week into a spreadsheet so I can view percentage formulas to see whether I have fulfilled my budget goals.
- Continue repeating the 1st step every day and the 2nd process at least twice a month.
It’s really that simple
I read Rich Dad, Poor Dad and The Millionaire Next Door last year, which caused me to turn a new leaf inmy financial endeavors. I no longer wanted to be a spendthrift; and, instead I became frugal with my money.
That doesn’t mean I don’t get to buy things I want—just last week, I bought myself a pair of the new Adidas Pure Boost for $140. It just means that I can’t have all the things I want. If I want to buy a new outfit, then I can’t go to a concert or travel out of town for the weekend. If I want to buy a latte Friday, I can’t buy a latte on three other days of the week. The idea is to live in moderation, to allocate money before it’s spent, and to fulfill the short term and long-term goals set forth.
My Financial Goals for 2017
I want to save money and pay off my student loans. I want to become financially independent, earn enough money to sustain my own apartment, and live debt-free for the rest of my life. In order to do that, I need to prepare for my financial future.
My goals for 2017 include:
- Save $5,000 in a liquid savings account
- Manage an investment portfolio worth $5,000
- Pay down $5,000 of student debt
I can definitely attain these goals if I act smart.
The idea of giving finance it’s own category of goals seems like something everyone should be doing. While I would prefer not to think about money, I acknowledge that it is an essential part of living in our current society.
Long gone are the days where bartering trade skills, rice, salt, and chia seeds were acceptable. Now, men and women make wages and use money, paper and metal, as ways to measure accountability.
Becoming financial independent would allow me to continue to produce independent content for my readers and spread a positive message through good, sustainable living.
Do you have financial goals? Let me know what plans you have for saving money in 2017.