by Chinkee Tan
I cannot further stress the importance decisions play in our lives.
As they say, a decision can either make or break us. And because we do not want to have to regret certain decisions in the end, it is vital that we think and reflect many times before even making one.
When it comes to finances, the ultimate decision-maker is you, the one earning and spending the money. And much like any other decision, you do not want to make a bad call when it comes to money matters.
Here are six decisions you need to make if you want avoid financial stress:
THE DECISION TO PAY ATTENTION (TO YOUR FINANCES)
The fate of your finances – good or bad – wholly depends on how you pay attention to it. Things like keeping track of your spending habits, determining how much you’re earning, and how much of it you should only be spending are signs that you are paying attention to your finances.
The first step to understanding your financial journey and eventually achieving financial stability begins with you paying attention to your funds.
THE DECISION TO CONSIDER A FINANCIAL ROADMAP
As you pay attention to your finances, you now have an understanding of your financial status. And so the next step would be the decision to make and follow a financial roadmap.
This is another necessary decision if you want to stabilize your finances. Roadmaps allow you to construct strategies that will help you achieve your financial goal.
THE DECISION TO PUT YOUR MONEY IN THE RIGHT PLACES
Is it time for you to invest? Is there a need to cut the cost on some of your expenses? Is the timing right to acquire a life insurance plan?
The decision to put your money in the right places is pivotal in determining the stability of your finances. Your money in the wrong place can shake the steadiness of your finances.
THE DECISION NOT TO GET INTO BAD DEBT
There are two types of debt, good and bad. Good debt you borrowed with the intent to make it grow and earn. Bad debt you borrowed to support a lifestyle that you want not necessarily you need.
There are many people I’ve counseled, living a stressful and a confused life because they do not know how they are going to settle their obligations. The decision to avoid getting into bad debt is the best decision that I’ve ever made in my life.
THE DECISION TO SURROUND YOURSELF WITH FINANCIALLY-SMART PEOPLE
When it comes to money, it matters what we feed our minds – principles, ideas, even influences.
If you study the lives of financially successful people, you will see that they share a common pattern: They surround themselves with people who are successful and financially smart. When you do this, you learn approaches, practices and new concepts that can help propel your financial status to the next level.
THE DECISION TO BE INTENTIONAL ABOUT SAVING
The idea of saving shouldn’t only be an idea. “Saving” is in itself an action word which means you need to put it into motion. And for you to succeed at saving, you need to be intentional about it.
Have you decided what portion of your salary to put into savings? Stick to that decision religiously and see just how much stable your finances can become because of your determination to be purposive about saving.
THINK. REFLECT. APPLY.
How important is it for you to become financially stable? Have you made any of the decisions mentioned above in your financial journey? What are they? What are those that you haven’t made yet and what keeps you from making them?
