When it comes to one’s finances, self-discipline and control play a major role in financial success. Self-discipline equates to being proactive with your life and finances. It can make the difference between financial success and struggling from paycheck to paycheck. Financial discipline is being able to say ‘no’ when needed. It is the ability to be able to put money away or allocate it to more useful things rather than spending it on non–essentials. Thankfully it is a good kill that gets better with practice.
Christmas and New Year holidays have come to an end; so, you’ve splurged on gifts, holidays and festive fun… Now the party’s over, it’s time to get back on track. Getting your financial affairs in order after the holiday spending spree is a common New Year’s resolution, but it may demand much more than just a tightening of the household budget or merely saying it!
If your mindset is, “I’ve worked hard, so I deserve this treat” then 2011 is the year to reprogram it to “I’ve worked hard, so I deserve financial security and independence.” Excessive holidays, beauty treatments and shopping sprees can be a major drain on your purse power. While you don’t have to completely deny yourself,there’s a compromise to be made; less spending on temporary treats will give you greater long-term satisfaction and happiness. Make up your mind to do things right this year.
The following tips will guide you in ensuring discipline in personal financial management:
- Create a budget and work within it.
- Wait, at least, overnight before making a large purchase decision.
- Balance your checkbook monthly.
- Have a monthly spending plan.
- Decide on a saving on every paycheck.
- Decide on a giving on every paycheck. Pay your tithe and set aside a sum for your offering and other giving.
- Organize your financial documents –File bill payments, subscription renewals, insurance etc.
- If you have credit cards, pay off in full every month.
- Regularly obtain credit reports to ensure it is accurate.
- For married couples – both parties should agree on and know where the money goes and how much they have saved.
- For Singles – establish accountability.
Signs of poor personal discipline include:
- Overdrafts
- Disorganized records
- Late payments
- Credit cards balances not paid off every month
- Spouses not working together
- Impulsive spending decisions
- Little or no saved money
- No giving
Here are a few suggestions for developing and maintaining the self-discipline for achieving abundance and wealth.
1. The desire.
How badly do you want to become and stay financially self-sufficient? What is the ‘burning desire’ that will keep you motivated to succeed and thrive when the going gets tough? Self-discipline begins with a desire to achieve and obtain something you currently do not possess. Desire is one of the most powerful wealth building tools you can develop. Without an unstoppable desire, your goal of abundance and wealth is simply a dream.
2. The plan.
Do you have a crystal clear vision of what you want financially and when you’d like to achieve it? This is where you focus on how many ways you can and will achieve your goals of abundance and wealth. You may want to engage the services of a financial advisor to help you set up your proactive wealth building plan. A good and workable plan should be one that is straightforward and in harmony with your values and beliefs.
3. The strength of mind.
Be confident. Know that you know, without a shadow of doubt, that your plan for financial self-sufficiency will become a reality. Don’t listen to the skeptics and naysayers. Have faith and belief in yourself and your ability to succeed. Know that with the desire, a plan and your self-discipline all things are possible. Strength of mind can make you unstoppable.
4. The self-control.
This is where the ‘real’ work begins. Having the self-control to keep working your plan and keeping yourself focused on the future. Consistent financial self-control can make the difference between financial self-sufficiency and struggling to make ends meet.
Self-control means making sure you’re saving, investing and spending according to your long-term objectives. It often means delaying instant gratification for long-term wealth building results.
5. The reward/payoff.
The future is bright when you aim the power of your desire, wealth-building plan, strength of mind and self-control toward your financial objectives. The financial reward/pay off will be well worth the time, effort and self-discipline.
Well done!
wealthwise@effectualmag.com