Money management is very simple, not complex at all. There are very few rules that govern money, which are relatively easy to grasp in order to get your house in order. If that is the case, why is an average person trapped in debt? Why are many Africans working until they 60? And why we struggling to make ends meet and living paycheck to pay check? It all has to do with discipline.
Just like physical fitness, no one wakes up every morning feeling like they need to do a 10KM run. It will require a game plan, determination, motivation fixers to shed off those calories to your ideal body. In fitness , there are three stages that are synonymous to money management:
1.Building momentum – at this stage, its a breeze. There is soo much weight to loose and the results are evident with minimal effort. In your finance journey, this will normally start with paying off that Edgars store cards, opening up that savings account and becoming a little spending conscious. Congratulations, making time for this post is a sign that you have begun the journey.
2.Aggresive results –This is that stage where you are actually getting obsessed with your weight. The six packs are almost there and you watch everything you eat. In your finance, this is when you actually start moving from savings for emergency funds to actually acquiring assets, you might even quit your job to start your own business after realizing how much money you could potentially make and if you are not too careful, you invest in get rich quick like MLC24/7.
3.Back to square 1 Danger Zone- At this stage your body has been at its peek for a while now and you are getting less results. Going to the gym becomes a little boring and you sort of go downward to eating like you use to just before stage 1. Lack of motivation is at it’s peek. With your money, there is not much expenses you can cut out to increase your savings, you not spending impulsive anymore and your life appear somewhat boring, your business did not turn out to be profitable as you thought and you go back to your 8-5 job.
After reading those three stages, where in the process are you? Be honest with yourself. I am somehow in the aggressive stage.
If you are just starting, maintaining that momentum is very important. Have clear goals and act without procrastinating. Get a finance fitness buddy and get some goals together so that you can hold each other accountable.
If you are in the aggressive stage like me, you need want to slow down a little. You must remember to run a marathon, you need endurance and not speed. Seek for advise before making drastic decisions and take calculated risks. Stay away for get rich quick schemes.
Finding yourself in stage 3? I am glad you are on this page. Please get back to point one. Remind yourself of why you embarked on this journey. Reflect on what you did well and what went wrong. Most importantly, stand up and just go for it. Remember baby steps. Rome was not build in a day.
I hope this help. You need consistency to reach the freedom you are seeking. Keep fighting!