millennial finance

LOOKING AT YOUR MONEY IN THE EYE

Do you ever look at your money in the eye? What I mean is are you usually honest about your REAL spending habits? Not to anyone but yourself. We’ve all been looking at how to cut our spending but do we go about it honestly? And by honestly I mean scrutinizing our spending not only in one day or a certain time…I mean 24/7.

Let’s talk about it in another sense. When you have problems in a relationship, many end up failing..why?Most of the people mainly avoid looking at the relationship in the eye, they just discuss the problems shallowly, therefore, creating missing links which eventually are too much to look the other way. The missing links break down into pieces and it becomes too late to pick and fix them up. The relationship is over. That’s how your relationship with money works too. With money, it doesn’t break up completely but you’ll be always worrying about your spending, never really fixing it up and consequently having ”money problems”. It doesn’t matter which financial level you are, get honest about your REAL spending habits.

How To Look At Your Money In The Eye
So I cannot claim to know exactly how you can be honest with your money because I don’t really know about you and your specific lifestyle. I can, however, tell you about the overall questions that you can ask yourself when being honest with your money. With those questions you’ll know the specific details you should check into according to your personal finances and your way of life. There is one specific rule I keep constant; BE HONEST AND DO NOT OVERLOOK ANY COIN. Wow, that’s glaring. Let’s get REAL!

1.What Is Your Income? What Is In Your Life That You Can Afford? What Is In Your Life That You Cannot Afford?
These 3 questions go hand in hand so take your time and answer them one by one. Remember, be honest with yourself. We may have things we can afford that aren’t important and also things we cannot afford that benefit in the long run. Weigh your options and state the ways you can balance the two(affordable and in-affordable).  If you can’t afford it, what do you do?

2.What Are Your Financial Goals? Are They Realistic?
Many people make financial goals which are a great step in growing personal capital. Like many other goals, financial goals are supposed to be smart and realistic. You can’t just make a goal that cannot be attained at a certain point of your financial life. I know you get what I am talking about.  If you are earning a four-figure and your plan to earn twice that will take two years but you set a one-year goal. You’ll definitely end up disappointed. You do not want that so make those goals realistic.

3.What are your essentials?What About Your Luxuries?
After setting your goals you obviously have set up a plan. Look into your essential needs, you don’t have to pretend that the every week trip to the movies is an essential need. And I am not saying that you shouldn’t have fun. Luxuriating is another important aspect of your life.  Little treats now and then are good for our health. Get honest with what really makes you happy and cut off the other unnecessary luxuries.Image result for essentials and luxuries

4.Final Decisions
After a close and honest scrutiny on your financials, I am pretty sure you have become aware of a couple of things. That awareness is what will lead to thought out decisions. These decisions will adjust your spending habits and your overall relationship with money.

Bottom Line
We cannot transform what we are unaware of or deny and in order to transform our personal capital, we have to unravel our real money patterns. We have to get real with our money fears and bitter truths. So be brave and confront your money as it’s boss.
Rinse and Repeat 24/7/365

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