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

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