Whether you’re pursuing a passion, freelancing, or starting a solo business, your biggest responsibility will lie in learning how to be mindful about your finances. Indeed, one of the success principles for a strong career is to be savvy with your finances. After all, money is the backbone of any good venture. It ensures that you have the resources to see it succeed.
And while using tracking apps or hiring a money expert are all probable solutions, one of the (arguably) best ways to be better about managing your money is to truly be mindful about your finances. Mindfulness is being aware of your current state — from your emotional wellbeing to your financial standing. Since being mindful can help you pay attention to the more important things and focus on the bigger picture, it can give you a firmer grasp on your financial goals.
That being said, here five ways you can be more mindful about your money and eventually achieve financial security in your endeavors.
Figure Out What Money Means to You
There’s no single formula or roadmap when it comes to achieving financial success. Not everyone experiences life equally, and we all have our own personal challenges and circumstances to overcome. Moreover, everyone views money differently. Erika Rasure, an assistant professor at Maryville University’s online business degree program, highlights how the definition of financial stability can be different from person to person.
“The definition of being financially secure for someone who, let’s say, comes from generational wealth — that might be owning an island, for example,” Rasure told Market Watch’s Meera Jagannathan in an interview. “Whereas somebody who maybe had a little bit more of a poor upbringing might find that their definition of security is just making sure that they have enough money each day to pay their bills.”
For you to understand what money means to you, it’s best to look at your upbringing, environment, and current position/goals. In this regard, you have to use a certain level of introspection and learn where to place the value of money in your life. This allows you to find clarity when making financial decisions.
Learn the Importance of a Foolproof Budget
Mindfulness requires awareness. By knowing where you stand financially, you can pay close attention to how much you’re spending and where you spend your cash. To help you gain awareness of your finances, you should create a good budget that covers all your bases. Aside from helping you reasonably divide your money over your expenses, a budget can also help you track how frequently and where your money goes. This can also help you understand your spending habits and what motivates you to make a purchase.
When creating a budget, Empowered Millenial Girl advises that you use applications like Microsoft Excel. This will allows you to easily input all your data and use formulas to accurately calculate and plan your budget. Once you have your budget spreadsheet down, be sure to follow your budget as much as you possibly can. You can also hire someone to do it professionally for you, through a firm or freelancer accountant, for example.
When hunting for freelancers, be aware that some will not have traditional accounting degrees and instead will have online qualifications (which are just as valid). For example, graduates of the online accounting degree at Maryville University are trained to be auditors, budget analysts, and financial advisors/managers in the exact same way traditional accounting students are trained. The only difference is they are not on campus.
Proper budgeting, accounting, and resource allocation are becoming increasingly vital to those who don’t have large funds, and there is a whole industry available to cater to their needs. Just make sure you do your proper research when hiring a freelance accountant.
Consider Your Emotions Before Spending
Most, if not all, of our purchases are emotionally charged. Indeed, big businesses have always used ads and campaigns to invoke our emotions to make sales. Ask yourself: Do you really need a professional camera to take a good photo? Is there anything in a premium grammar checker that can’t be found in its free version?
Remember that long-term value should always be prioritized over instant gratification. By having a firm grasp over your emotions and refusing to succumb to external influences, you can avoid emotional spending and compromising your finances.
Buy Things Purposefully
As you become more mindful of yourself, you’ll find it easier to stand up for your principles and what you believe in. This can also affect your finances, especially if you have strong personal feelings and values that are directly against different philosophies.
If you’re an advocate for minimalist design, for instance, you will find it easy to avoid spending a lot on mindless office decorations. Instead, you will be more inclined to buy things with purpose and intention. For the above example, you can instead channel your energy into buying furniture that aligns with your personal inclinations — like a sturdy desk. Of course, don’t forget to do your research and due diligence before making a purchase.
Overall, being mindful of your personal beliefs, values, and needs is necessary in order to become a financially successful and well-rounded person. So, using the tips listed above, do your best to become more mindful of your money habits and how you live your life.
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