My Money EQ
I’ll be the first to admit that I always talk a good game about managing finances, but the implementation has been a lot harder.
The year that was 2020 has opened my eyes to a lot concerning finances which has pushed me to build my financial IQ and EQ muscle significantly. Your financial quotient is quite simply “the ability to obtain and manage one’s wealth by understanding how money works.”
To help me lift the proverbial weights to build that muscle, I’ll share a few lessons I’ve learnt concerning money management.
Cut out the Unnecessary
We live excessively: trim the fat. I love beautiful things, but the hard lockdown made me realise we need so little materially to be happy. I’m not advocating that you don’t buy yourself something beautiful to wear or for your home (these things are created to be appreciated). What I am hoping is that we would spend our money consciously; purchase with intention; give what doesn’t serve you as a blessing to someone in need. Utilising money management tools is invaluable and empowering.
Use the Available Tools...BUDGET
Using something as simple a budget that you set up to track what you’re spending puts you in a position of control. When you’re in control of your finances, fully aware of what you have coming in and what’s going out, you start making better, more realistic decisions. Let’s start with a simple tool that we can all use starting today. Budgeting: what does it mean? My Money Coach describes it as follows.
“Budgeting is the process of creating a plan to spend your money. Budgeting is simply balancing your expenses with your income.”
It will allow you to prioritise your spending correctly and I’ve discovered that it ensures that because you’re aware of where your money is going, you spend it on your NEEDS first, rather than the “nice to haves.” I also discovered that because my needs are taken care of, I have far less stress concerning finances.
So empower yourself with knowledge of the world of finances. When you start understanding a language, you start communicating well. Understanding the language of finance and money takes out intimidation and fear. When the fear goes, that’s when the thriving sets in.
You’re Responsible
Take responsibility. We all need some sort of buffer or safety net. Trust me, I know this is easier said than done, but if others have done it who have earned far less than us, why can’t we? I had to face the reality that I wasn’t prepared, like so many millions of people. But, I was also the sole person responsible for it. It wasn’t the industry, or the market or the virus’ fault. This was when I started appreciating the cents because every cent counts. Understanding this has made me realise I don’t need to spend every rand that comes into my account. Having a buffer is not anticipating the worst, it’s choosing wisdom because life is unpredictable.
Squash your Debt Quickly
Get rid of your debt, do it quickly. Make the sacrifice and do it. It was so tough but we survived without the social gatherings, the everyday cappuccino (approximately R150 per week). Let’s do it for a bit longer. Retrospectively I have to ask myself how I managed to have money for coffee and lunch dates but not for saving. It was all an excuse. But today, I choose differently. Squash the small debts in order to have more funds to pay off bigger debts quicker and when you stop paying off your debts, use what you would have to save.
“Ball on a Budget”
In the words of LeAnne “Ball on a Budget.” I am a girl that loves excellent quality. But I love a bargain just as much. You don’t have to compromise on either. I subscribe to sites like “One Day Only” which give incredible discounts on great brands. I also time the sales and comparison shop. It seems time-consuming but once you get into it, it becomes effortless. Digital platforms
Give generously
Maintain your spirit of generosity. There is no such thing as too little. I could see the dire need around me. I took some money weekly to get some bread and polony for someone who has far less than me. I have had others be generous to me, how could I not do something small in return? The beauty is, it uplifted my soul and reminded me that I actually have so much to be thankful for.
@KimJansen777