When it comes to managing your money and ultimately improving your finances, the very first question you have to ask yourself is, why? Why do you want to increase your wealth? Why do you want to manage your money better? Why do you want to improve your financial status?
Now the mistake a lot of people I have coached over time make, whether it is to do with financial issues, their relationships, their health and so on, is they fail to get clarity as to why they want to change their situation. The principle is the same no matter what the issue in hand; unless you have clarity as to your why, and that clarity must be self motivating, you will fail to achieve your outcome.
In his book,7 Habits of Highly Effective People, Dr Stephen Covey said that one of the habits of highly effective people is they start with the end in mind. You need to envision what you want in the future so that you know concretely what to make a reality.
Unless you start out on your journey knowing where you want to end up, how will you ever know when you have got there? So as we are discussing finances, let me put to you a number of different scenarios that may help you to know ‘concretely what to make a reality.’
Whatever your reason, please ensure you are as clear and concise as possible. Simply saying ‘I want to have more money cause I’m sick of being in debt’ will not help you to change your situation and help you manage your money better. If having more money is all you can say, then email me your address and I’ll send you $10, mission accomplished, you now have more money. Effective money management takes proper time, consideration and action and so the more clear you are, the more focused you will be and the more self motivating your actions will be because you will know exactly why you are doing what you are doing.
Now before you start to take your first step into managing your money better, there are a few things I need to stress before you begin.
So if you haven’t yet taken the time to write out your reason as to why you want to improve your finances, then please do so.