This is Part 1 of a three part series to explore the unique relationship between money and your professional/personal advancement and happiness. Money controls every aspect of your life! It is imperative to analyze your income in relation to your spending habits. Keeping balance in your life requires a budget to reflect your individual situation.
Lack of control over your personal finances can cause emotional stress which may impact your relationships/functioning at work and your personal life as well. Often the stress leads to insomnia or unhealthy eating patterns. Also some individuals will attempt to cope by gambling or the use of drugs, legal or illegal. This creates a situation where you are not functioning at your maximum performance level at work or at home.
The first step is to acknowledge your ignorance of the subject. This is not a personal failing, but merely a reflection of the inadequate training most individuals receive in school and/or at home. The skills necessary to increase your knowledge base can be learned!
Under financial stress most people will add a part time job or seek employment at a higher salary. This often doesn’t cure the root problem. We live in a consumer based economy which supports spending money in order to be viewed as successful or keeping up socially with your peers. Poor spending habits can be broken and more constructive thinking patterns can be developed.
Knowledge is power. You don’t need to obtain a Master’s Degree in Business to understand the basics of good personal economics. You can start with a calculator and a pad of paper. Your first step is to keep track of all your expenditures for 90 days. If you have a computer, you can tap into several online apps such as Mint (www.mint.com) to assist with your tracking of expenses. It will easily become apparent as to how you are spending your money.
You place the expenses into specific categories such as rent/mortgage, food, clothing, eating out, entertainment, taxes, etc. You can then prioritize what is necessary to pay vs extras that aren’t really necessary. Repayment of debts and establishing a savings account should also be considered. Once you determine your inflow and outflow of money, you then possess the power to establish your personal financial goals. You will take control of your financial life!
