Yes, we may sometimes joke about finance and money but it is not always a laughing matter.
It is easy to ignore financial issues and then look for someone to blame when the s*^t hits the fan.
“I didn’t know”
“I trusted him/her..”
“It was my ex’s fault!”
excuses … excuses … excuses…
Like many things in life we need to stop looking for someone to blame and instead admit some past mistakes and then move on.
You sometimes need to move on.
Time To Turn The Page
Sure, it can be hard to admit to making mistakes with the way we have managed our finance and money but it does us no good to dwell on things that we cannot change.
Like the cartoon here, many people have hit hard times over the years, but the ones that pick themselves up will often be those that we as successes many years later.
Learn From Your Mistakes
As mortgage brokers we are often called upon to sort out people’s financial issues and it is something that we like to think we are good at too. We may consolidate some expensive debts, refinance a mortgage or arrange a loan to sort out the finance and money issues.
The key two things that we are always looking for is;
- Making sure that there is a better long-term outlook
- That they have learnt from the mistakes that saw them end up with a financial issue
Every situation is different, but generally there were some decisions made or not made that contributed to the situation.
People Love To Spend Money!
Most of us enjoy to spend money or at least enjoy the nice things that money can buy.
We like to have luxuries…
The problem for many of us is the availability of money (loans) that allow us to buy those nice things before we can really afford them, but we should not blame our financial woes on the lenders – we are adults and should be able to control ourselves and our spending.
We also often do not accept that we can wait and save up, and instead want to buy those items now.
What Is Financial Planning And Budgeting?
Most people might “think” they are good with money but when you ask them about their finances and money, or about their budgets and financial plans they have nothing to share with you.
The only way to measure success in life is to measure against some form of expectation – a goal, a plan, a budget…
Without a plan you can easily find that you lose control of your finance and money.
A budget will monitor your income and expenses and you can therefore see very easily if you are managing to get ahead with your finance and money, or if you are overspending and therefore not achieving your goals. Most importantly a budget lets you know immediately that you start to stray off course so that you can address the issues immediately.
In business many accountants will produce very detailed budgets and then produce cashflow plans so that you can monitor your business finances and ensure that you can see any potential financial issues before you actually get there. Many seasonal businesses might require finance at certain times of the year and therefore knowing when and how much you will need takes a lot of pressure off those decisions around finance and money.
In both life and business there are only two ways to make the budget better;
- Increase what you earn – your income
- Reduce what you spend – your expenses
Increase Your Income
For some people this may be possible by working longer hours or for self-employed people it may meaning working a little smarter, but some jobs are not going to allow you to increase your income and therefore you may need to look at other opportunities to earn some extra money someplace else.
Today a lot of people are able to make money from buying and selling products online using Trade Me and e-Bay as their marketplaces, or by setting up their own online stores. There are many methods that work and will enable you to earn an additional income and some people will even be able to replace their whole income with an easy online business.
The key is to learn the proper way of doing this and one training course presented by affiliate marketing giant JVZoo is arguably the best training you can get today.
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Easier said than done!
Let’s admit it … nobody likes to reduce their personal spending, but at times you do need to review what you are spending and look to channel your money elsewhere. Consider how much you spend on coffee each week or the gym fees that you pay.
In business you will often see the expenses being slashed, and that is okay when there is a lot of waste but the problem with many households is they have already slashed the spending to the bone and therefore there are only limited options left – when they look at finance and money maybe that are better to look at increasing the income.
There are lots of old sayings that we hear repeated, and that is because they are true.
“Insanity: doing the same thing over and over again and expecting different results.”
That is one of my favorites, and yet we see so many people that continue doing the same things that they know are not working too well and I guess they are hoping that by some miracle things will turn out differently.
If you are struggling with your finances then you need to do something before they get worse.