Common Mistakes People Make With Their Personal Finances

Personal Note: One striking thing about this article is how Shantel made it clear right from the start that attaining financial security does not have anything to do with our individual levels of income. A lot has to do with our mindset and the in-depth understanding of our current financial situation (where we are), our desired personal finance goal (where we want to be) and the plan and strategy we have, in a well laid out manner, on how we intend to achieve the desired goal. She also reminds us that, if we work toward achieving our financial security goals appropriately, we would always be able to enjoy a certain degree of fun and joy that comes with staying the course.

Common Mistakes People Make With Their Personal Finances
By Shantel Haines

Common Mistakes People Make With Their Personal Finances

Talking about personal finances is not a subject that most people enjoy. The reality is people generally assume that personal money difficulties are from a lack of money to work with. However, money management and handling proves to be more of a challenge than not actually having enough money.

It may surprise you to know there are as many high income earners that have challenges managing their money as there are those in the smaller income categories. Further, happiness and success in dealing with money have little to do with the amount of money but, rather what is expected and wanted from that money in terms of what it brings to your life.

What are the common mistakes that many people make with regard to managing their personal money?

This includes the practical difficulties with:

Organization and Structure

Many people don't have structure in how they manage their personal finances. There needs to be a set direction and plan for how money will be used now and in the future. It sounds good to talk about this, but many individuals do not know how to tangibly have a workable set of activities that will keep them moving forward and having a practical set of good money practices in dealing with their money. Only with structure and organization, can a good money plan be adhered to and the benefits realized. Once these personal money practices are in place and tailored for the individual, then momentum can take over and it becomes part of who you are and in your actions in dealing with your money.

Money inflows and outflows

Knowing exactly what money that you have coming in and leaving your "money reality" is again not something in a tangible sense that people know how to deal with. They may know what that is (or not) but how to do this is something else. Think of it like using a calculator, it is convenient and obviously more efficient, but you still should know HOW it is computing and arriving at its answer. Can you answer why you need to know your cash flows each month? Do you know what your net worth is? These answers are the keys to being able to put together a true understanding of what you have been doing with your money and what behaviours you may need to change.

Money Intention

The realization that money is not meant to be all used at once. Some of it is for your current use, but an amount must be left for near-future use and then a portion for further-future use. Preserving and safekeeping your money for the time ahead together with using money for cultivating strength and fun in your overall life is important and essential for you to be able to work with your money. Having a specific method of understanding what you want from your money and clarity about your intentions for your money, are key.

Confidence

Building your money confidence is at the center of actually working with it. Becoming grounded with your relationship with money and knowing how to approach the whole question of money is rooted in how confident that you are. You must build your confidence about money through enhancing your money mindset and character. This is achieved with allowing yourself to think differently and to adjust your thinking that will free you to the point of building confidence with your money.

Keeping the Fun

Your personal money is not just about earning money and paying bills! There is supposed to be a certain degree of fun and joy that comes from achieving and having what you want for the money that you earn. Coming to terms with what that is, how to obtain this and organizing yourself to have what you want will help you to work towards what you believe will make you happy. Often times, people work for things they don't want while ignoring or not being truthful to what they really do want. Making decisions, being in tune to your desires and having a plan will greatly help you to stay true to your purpose and eliminate that which you don't want with your money and your life.

Dealing with your personal money can be one of the most intimidating and frightening subjects for people to deal with.

However, it need not be if you learn how to:

• Work with your personal money inflows and outflows
• Preserve and safe keep your money for the future
• Create your money intention for strength and for fun
• Enhance your money mindset and character
• Build your money confidence

To your personal money confidence...

By coming face-to-face with your money, you can look forward to starting fresh - cleaning up old habits and embarking on a new path for yourself, with renewed hope and optimism. http://goo.gl/IuojZO

Article Source: http://EzineArticles.com/?expert=Shantel_Haines
http://EzineArticles.com/?Common-Mistakes-People-Make-With-Their-Personal-Finances&id=8462392

Setting Realistic Financial Goals

Personal Note: Personally, the wisdom Dan shared in this article is coming at an appropriate time. While a number of us have often succeeded at being disciplined as regards our personal finances – specifically in the area of spending less than our incomes and paying ourselves first – once in a while, certain “essential” demands challenge that healthy habit. This article helps us in maintaining our focus and serves as a reminder that, with determination and continuous learning, we can steady our gaits and keep ourselves firmly on our individual paths to financial security.

Setting Realistic Financial Goals
By Dan Annweiler

Money is one of the greatest concerns for the vast majority of people. We all need money to survive, to eat, dress ourselves, pay the bills and have some fun. When money is not enough, it's very easy to slide on the descendant path of debt, without too many possibilities to escape the trap once we are caught inside. Few people who are in financial trouble know that there is a way out, but it requires a good personal discipline and the understanding of the personal finance management principles and rules. This article contains a few tips that might prove useful, so keep on reading.

The first step in seeing yourself out of trouble is to estimate how big the trouble is in the first place. You need to create a spreadsheet containing your monthly net income and your expenditures. Be as detailed as you can, because it is important to see exactly why you can't make ends meet and where you could possibly cut from in order to be able to recover.

The main rule of a healthy family budget is to always spend less money than you make. You should setup a savings account and direct 5%-10% of your earnings into it prior to paying any bills. Even 2% of your monthly income could be something if you stick to this habit long enough. The key thing here is to set this money aside before spending on everything else, otherwise your best laid plans won't work, especially if you are already in trouble.

Entertainment is good, but it shouldn't throw you into even bigger debt. Budget for some inexpensive entertainment every month, but consider cooking with friends rather than going to expensive restaurants, for instance.

When you make your family budget, don't forget to include expenses that occur only once or a few times a year. Insurance, car maintenance or medical expenses may fall into this category. Don't overlook them, because they are important and they will ruin your budget if you don't expect and plan for them.

If you don't make enough money to cover all your current expenses, consider what you could be cutting without suffering too much. You may be able to take the bus instead of driving your car, for instance, or maybe you could ride your bicycle. When shopping for groceries, you could watch and take advantage of special discounts, promotions or coupons. When you are at home, maybe you have the habit of keeping the lights on in all rooms, even if nobody stays there. Consider switching off what you don't need. It's good for your finances, as well as for the environment.

Be careful with your money and you'll see getting rid of problems is not an impossible task.

We offer personal finance tips and ideas that will help you improve your finances, manage your debt, increase your credit scores and save money on TV and telephone services.

Have your heard about the new digital currencies like BitCoin and Ripple XRP? In 2009 BitCoin was trading at pennies a coin and near the end of 2013 one BitCoin was trading at over $1000! Could Ripple XRP be the next Bitcoin? Click here to learn more about the exciting world of digital currencies.

Article Source: http://EzineArticles.com/?expert=Dan_Annweiler
http://EzineArticles.com/?Setting-Realistic-Financial-Goals&id=8457700

People Don't Plan To Fail, They Fail To Plan

Personal Note: This is one of those articles that sort of jolt you from financial slumber. In a very pragmatic and candid manner, Ken reminds us that the future is certain and it approaches without caring whether we are prepared for it or not. The statistics of individuals that fail to plan is just staggering, but it is a wake-up call that we need to take the bull by the horns and start, or remain persistent in, taking those necessary steps toward our financial security.

People Don't Plan To Fail, They Fail To Plan
By Ken Moraif

Check out these statistics: Seventy-two percent of Americans, once they reach the age of sixty-five, depend on Social Security, charity and family for income. Seventy-two percent! Twenty-three percent have to continue working. Only four percent are financially secure, and one percent are wealthy. That means ninety-five percent of people in the United States, the richest country that has ever existed, either have to continue working or rely on charity, Social Security and family for their income once they hit sixty-five. That's mind-boggling!

I don't think those people planned to fail; many of them just failed to plan. If you don't want to be in that ninety-five percent, I suggest you start making your plan today, beginning with these five steps:

Step 1 - Determine your goals. Ask yourself where you want to be in five years. Then write it down. A goal is a dream you put into writing. There is amazing power in writing something down.

Step 2 - Gather up all of your investment information. You may have accounts spread all over the place. Figure out where everything is. Get all your records together. Get organized so you can determine where you are financially right now.

Step 3 - Consult with a professional. There are some things in life that are way too important for you to do by yourself. You don't perform surgery on yourself, right? Professionals can tell you where you're weak, where you're strong. Seek advice from financial advisors, tax professionals, and people in the legal profession. Even the best athletes in the world have coaches that help them. The same principle should apply when it comes to your finances.

Step 4 - Decide to pay yourself first. If you're still working, you should be maxing out all the opportunities you have to save money. Do it. Take that money away from yourself before you get your greedy paws on it. You'll start to see your account grow, and as it does, you'll be motivated to save more. It's a wonderful thing and you should do it. Now.

Step 5 - Review your plan once a year. Look at where you are, not only based on where you were a year ago, but in regards to the five-year goal you made in Step 1.

If you start planning now, I think there's a better chance you'll be in the five percent of people who are financially secure after sixty-five. And that's where I want everyone to be. I'd like to convert the whole country to the idea of planning to increase their chances of being financially secure.

Article Source: http://EzineArticles.com/?expert=Ken_Moraif
http://EzineArticles.com/?People-Dont-Plan-To-Fail,-They-Fail-To-Plan&id=8441185