- December 20, 2018
- Posted by: Midridge International
- Category: Blog, SME
If you were asked about your finances would you know your numbers? Would you remember your deposits, your debts, your net savings, your average monthly expenses? Not many of us can answer these questions. Money is one of the most important parts of our life, but we don’t know much about our own finances in precise terms. Is that not surprising?
Money management plays a very vital role in success. If you were to put the same questions to a very successful person, you will get all the answers with analysis thrown in for good measure. Those who make lots of money understand the importance of money management. Unless you manage your money, you will not be able to make best use of it.
NOW is the best time to get a grip on next years finances. Here are 9 keys for Money Management:
Meet with your Accountant to Plan your Taxes NOW
- What will you do differently
- What to plan for the new year
Make a Commitment to Pay Yourself FIRST – it’s time to start saving BIG TIME
- We all know we need to – but do we?
- Create an automatic withdrawal just like a bill, I had to put this in an account where I couldn’t spend it then play a game with myself on how to let it accumulate. It becomes FUN.
Create a GOAL around your Finances
- How much do you want to make PERSONALLY
- How much do you want your company to make
- If you earn commissions how much will you need to sell to create your paycheck
- By how much do you want to grow your investments?
- It’s time to look at what investment strategy you will start this coming year
- Let’s have a reality check about your credit and your debt
- Evaluate your interest rates
- Create a payback plan
- Make a commitment that if you can’t pay cash you don’t buy it
- Cut up your credit cards if you don’t have discipline
Create a Will
- Time to plan for the future, the best time to create a Will is when you don’t need one. Plan your estate to avoid creating a mess for your children or beneficiaries, or worse still make them unable to access it when you’re gone.
Create a Budget
- Live within your means
- Analyse what you are really spending your money on each month. Don’t buy what you don’t need.
Diversify Your Investments. Think about:
- Mutual Funds or Money Market Instruments
- Real estate
- Small business
Establish an Emergency Fund
- Create a budget for the just incase emergencies – grow it bit by bit if you need to
Celebrate your Wins!
- Make sure you celebrate along the way…
- Create benchmarks and prizes for what you will do when you hit the goal!
Follow these steps and you will be working towards your Financial Success!! Sometimes, what is holding us back is our relationship with money. I encourage you to really think about money and recognise what comes up for you. Discover healthy ways to have a relationship with money if you feel that you are STUCK in an unhealthy mindset of lack or scarcity.
Always remember, I’m here to help. It is my honour and privilege to lead you with more than a decade experience of wealth creation with leading organisations. Successes are great, but IF you can learn from your “failures”, you’ve got some of life’s greatest tools.
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