By: Money Pedals
It’s a new year! Isn’t that wonderful considering how quickly expended the previous year had been? I am very sure you had prepared your financial plan for this year, which is great. If your financial plan for this year includes seeking ways to accelerate your financial success. You’ve made a laudable move.
Sadly, many people have entered into this New Year with a lot of hopes and wishes for great financial success but the highest percentage will be disappointed by the end of the year. Sorry if I sound somewhat negative or direct but in reality, it’s just a simple, direct truth. Hopes and wishes are not strategies by which financial success is achieved.
How To Accelerate Your Financial Success In The New Year
Achieving financial success can be tricky if you are not very careful as there are lots of things that come into play when it comes to achieving financial success. To accelerate to financial success and make your financial goals achievable, here are 15 exercises to inculcate into your life.
1. Have Crystal Clear Financial Goals
Your goals are gold.
That is the reason when athletes are going for competitions; the phrase ‘Go For Gold’ is often used.
Having crystal clear financial goals is a prerequisite to your financial success. Your goals set the tone for how you decide to live your life and that is the reason they are super important.
Your financial goal should be specific and crystal clear. Clearly set goals make it much tougher for you to give in to lifestyle inflation because you already know exactly what your goals and targets are.
Also, you must me be cautious of vague goals. These kinds of goals often lead you unknowingly into lifestyle inflation. For example, setting a goal like ‘wanting the people around you to feel your worth’ is not financially wise. This opens the door to considering all kinds of options like; buying an expensive car, buying a large house, buying a new 4k Ultra television or financing a vacation which you may not have enough assets to cater for it.
Alternatively, a clear goal like ‘ attaining financial freedom, having a better life, becoming debt free and sending your two kids to college debt free’, will give you better ideas of what it will take to reach those goals and how to align your spending.
With you having a clear goal, certain purchases and decisions that might inflate your lifestyle and won’t really contribute to your end goal are revealed and so you can easily shut them down.
2. Have The Right Mental Attitude Towards Money
Success or failure is caused more by mental attitude, even than mental capabilities.
Ever come across the saying? ‘As a man thinketh in his heart, so is he.’
This is one of the statement mankind never take time to ponder upon. The few that understand this hold the keys to prosperity in their hand. Be it financial, health, or spiritual prosperity. Millions of people are poor because they have a negative mental attitude towards money.
Either you believe it or not, our life is the physical representation of our deepest thoughts. For every individual is or becomes is by reason of what he or she has thought. We have thought ourselves into what we are. Your place in life is largely determined by your Mental Attitude.
So, what makes up once mental attitude? You may ask. Your mental attitude is made up of your thoughts, ideas, feelings, and beliefs. You are constantly creating a future for yourself with your mental attitude.
Your mental attitude is making your character. More so, it is constantly having its influence upon the outside world, both in the direction of your effect upon other people, as well as your quality of attracting toward yourself that which is in harmony with the prevailing mental state held by you.
Having the right attitude will definitely fast track your financial success in this New Year.
3. Take Wise Financial Decisions
Wise decisions are the doorway through which financial prosperity comes. Someone once said, “life is tough but you can make it tougher if you are stupid.” Foolish decisions are not only foolish, but they are also costly. For example, most religion forbids adultery. And when you think about it, not only is adultery a sin, it is frequently also very costly. If you have relations outside of your marriage, you risk two conditions that are financially draining.
If your adultery leads to sexual disease or even AIDS, it will be very expensive. Some sexual diseases cannot be cured PERIOD. Some others like AIDS can be cured, but only by drug treatments, which consist of taking numerous prescription medications simultaneously, which can cost around $5,000.00 per month. Even if you have insurance, the leftover co-payment would probably still eventually bankrupt you.
If your adultery leads to your partner becoming pregnant, again the result is financially draining. You will probably be required to provide for your child for the next 18 years. If the child support amounts to only $5,000 per year, it will total $90,000.00 over the ensuing 18 years. Do you have an extra $90,000.00 lying around?
Driving drunk is unwise. Not paying your bills on time and having a bad credit rating is unwise. Not pursuing higher education is unwise. You can increase your income earning potential considerably by obtaining a Bachelor’s Degree, a Master’s Degree, or a Ph.D.
Smoking is unwise, as it leads to many health complications. Using illegal drugs is unwise, as they are overpriced, addictive, and arrest, loss of employment, and even death can ensue. Premature death is unwise and often avoidable.
Are you beginning to get the picture? I don’t care how many financial seeds of faith you sow into some ministry if you don’t make wise decisions in life; your giving is almost entirely pointless. Poverty, not prosperity will be the result.
4. Increase Your Income
As the cost of living is on the rise, it’s no news this day that a lot of people are struggling to make ends meet. It is, however, becoming vital to find ways to increase your income in order to reach your financial goals more swiftly.
There are short-term incomes solutions like taking a second job if all you need is a quick cash fix up. The downside of this is that you might find yourself in need to boost your income sooner than expected.
Nevertheless, if you know that you need to have a higher income to get by, you need to look at long-term solutions to your problem.
5. Save As Much As You Can
Saving is that part of your earning or income you set aside unspent that is capable of generating interest and represents a seed for future growth. The Webster’s English Dictionary defined a savings account on which checks are not drawn and which earns some interest.
It is prudent to have a savings account; it is powerful to maintain it. He that will learn and apply the art of saving holds the key to financial prosperity, and all others must necessarily depend on him for upkeep and survival. He is not safe that cannot save.
The most important thing you can do for yourself this year is to try and pay yourself first by every means possible.
Financial prosperity comes from saving, planning ahead, and anticipating potential setbacks.
You never know when a season of unemployment may come. Nor do you know when an unexpected expense may arise. That’s why it is called an “unexpected” expense.
There are several reasons why we should save, one of which is that we need to be prepared for that time in our lives when we are too old to work.
Another reason would be to prepare for hard times in the future. We do not know what will happen in a few years’ time – maybe there will be unexpected bills that need to be paid, or maybe we will find ourselves in a position where we want to buy assets, like a house. In order to cover ourselves for tough times and also to be able to make investments, we need to have money saved up.
6. Give As Much As You Can
The Law Of Growth
The law of growth states that we cannot obtain if we stubbornly hold to what we have and those difficulties, disharmonies, and obstacles indicate that we are either refusing to give up what we no longer need or refusing to accept what we require. If we hold on to our possessions too tightly, we will almost certainly lose them.
Those who understand and accept this principle will be open to helping their family, friends, and neighbors through gifts and practical assistance. Growth is attained through the exchange of the old for the new.
We cannot obtain what we lack if we tenaciously cling to what we have. Saint Augustine said: “God is trying to give good things to us but our hands are too full to receive them.” It is only when you empty your hands as a result of deliberate and loving surrender through the act of giving, that you are permitted to receive fresh things.
7. Spend Below Your Earning Radar
It’s disturbing to see people who spend all they earn and more. This has kept millions of people in the rat race.
One outstanding way to beat lifestyle inflation is to spend less than you earn. Track your income and get on a budget so you know what your expenses are and you can plan accordingly.
To effectively stay below your earning radar, you want to keep your entire lifestyle simple yet comfortable. With this technique, you won’t be spending money just for the reason that you have enough money to.
The moment you start tracking your expenses and sticking to your budget, you’ll be able to use any surplus money to move toward your financial goals.
If you must increase your spending limit, try to increase your earning first.
8. Stick To The principle of “Little By Little”
Often we want to strike it rich overnight. We turn to “get-rich-quick” schemes. We throw our money into slot machines and at the lotto hoping for the big win! There is, however, a principle that stands in contrast to the ‘get rich quick’ idea, and that is the principle of ‘little by little’.
‘He who wishes to be rich in a day will be hanged in a year,’ – Leonardo Da Vinci.
The best way to get rich is to get rich slowly. Easy come easy go. Charles Colton said: “that, which we acquired with most difficulty, we retain the longest; as those who have earned a fortune are usually more careful of it than those who have inherited one.” Nothing can be more foolish than a vigorous attempt to reap where you did not sow
John Ray said: “industry is fortune’s right hand and frugality is her left.” This is the way of true riches. The only way to win is never to bet. This is what I called Don’t Hunt What You Can’t Kill.
9. Learn To Use Debt As A Leverage Not A Bondage
We act like debt is bondage or a curse. Well, it is an obligation. And if you borrow unwisely, you can easily get under a great burden of debt.
Obviously living a debt free life or going into debt is a choice. But, it’s wise to find the balance for your financial goal in between the two extremes. If you just want to have enough put aside to feed yourself after retirement, you might choose to live debt free but if you are ambitious and want to attain great financial prosperity you need to understand the intelligent use of debt.
10. Budget! Budget!! And Budget!!!
Without a budget, you only stand to spend and save your money blindly to the point where you might not even realize exactly where your money’s going. It’s a practice that can leave you wasting money and spending more than you should.
Many people are of the opinion that budgeting is unnecessary when they have enough funding to accommodate all of their wants and needs.
In many cases, budgets are seen as a means of restricting your finances. While this might be true if you’re short on money, but, a budget doesn’t necessarily have to be restraining if you don’t need it to be, and having one can benefit your finances immensely.
A budget might be one of the most basic tools in your financial arsenal, but it’s also one of the most important ones.
If you are serious about budgeting sites like Budgetsaresexy is a good resource place for you to start.
11. Invest Wisely
Investing wisely is the secret to becoming wealthy. People who are successful financially have a common routing which they follow in four steps. They save early, save often, invest wisely and never stop.
Many of those who are wealthy today started saving small amounts of money and kept saving throughout the ups and downs of their careers and lives.
Today, investing has been simplified and automated. Though you don’t have in-depth knowledge of investing. You can use any available tools to start your investment portfolio.
In fact, you can start investing for as low as $5 dollars on some of these tools.
12. Delay Gratification By Avoiding Lifestyle Inflation.
It is very common to see workers buying new cars or moving to an expensive neighborhood when they received a pay raise. People who could not delay gratifications will most likely end up poor.
Many people are found of inflating their lifestyle with an increase in income. Lifestyle inflation or the inability to delay gratification can make it difficult for you to attain your financial goals.
Lifestyle inflation refers to increasing your spending (and thus, lifestyle) when your income increases. Common examples could be upgrading your home when you get a better job or a raise, or even going to out to eat more once you start making more.
The problem is that lifestyle inflation often steers people to overspend. Others are likely to inflate their lifestyle even when they really can’t meet the expense.
Over the years, I’ve learned quite a few ways to delay gratification and avoid lifestyle inflation in certain areas so I could focus on my true goals.
13. Avoid Getting into financial Arguments That Could Ruin Your Relationships
Let’s face it! Money is one of the most important things in the world but it can never take the place of great relationships in your life. Having great relationships comes with one of the best feelings in the world; of which you don’t want it to shatter away. Many great relationships have been damaged as a result of bad financial arguments.
Since money is like the air we breathe, it is common to find yourself in unanticipated financial arguments. These could be with your spouse, your boss, friends, and families or the even worst – with the kids. The way you approach each of these people can really be different and can require a whole different approach.
14. Increase Your Financial Literacy.
Making investment decisions, analyzing the financial report, money management is a few out of many skills people need to be successful but the most painful thing is that this vital skills cannot be learned in school.
So, here is the question; how do the rich learn all these?
The answer is simple – they read!
You need to acquire fresh information continually. There are lots of secrets hidden in books, including the secrets to manage your money.
I know you are a good reader and you’re doing this right now! Yaaay, you! But, you can take it to the next level by reading more. Get yourself a list of books you must read on weekly, monthly and yearly bases.
You can follow our reading list here.
If you are on a low budget for books now you can simply buy e-books or read this blog regularly for up-to-date information. We try our best to give the best of business and financial education freely. You can easily follow this blog by subscribing to our email list.
15. Get Help
To accelerate your progress towards achieving your financial goals, it is important to get professional help when needed.
If you really want to stay in control of your finance this year, you should learn to outsource the things you’re not good at. Many successful people got that way by delegating the tasks to others for which they aren’t necessarily best suited, like handling their financial planning efforts.
Delegating to a professional can help you stay on track and avoid making expensive mistakes while you tend to your busy life.
Republished with the permission of MoneyPedals.com.
Steve handles the operational side of Rockstar by keeping the systems running smoothly, social media accounts active and curation buttery smooth. He also answers to the name “Do-It-All Boy”.
Steve is also the founder of ThinkSaveRetire.com – a site where he shares ideas and techniques on how to retire from your 9-5 job and start to enjoy the virtues that life has to offer outside of full-time work. Life is about more than fluorescent lights and gray cubicles!