Why You Need to Take Command of Your Money
It’s time to take control of your life.
Why would you want to be in control of your personal finances?
Seems like a silly question, doesn’t it? But we’re going to ask it anyway.
Seriously, ask yourself: Why would you want to be in control of your personal finances?
What does having that privilege— that power— do for you?
Would you feel more confident in yourself…and your future? Would it improve your day-to-day lifestyle? Would that allow you to live out the hopes and dreams that — to this point — have only ever played out in your head?
That would be a resounding Y-E-S. Yes.
We can desire once-in-a-lifetime experiences or material luxuries or simply peace-of-mind and freedom to do whatever, whenever.
But…you can’t actually get there without having your finances together. It’s a hard truth.
There are puh-lenty of reasons to be well-versed and knowledgeable when it comes to your money situation. Here are a few big ones.
You want to achieve your life goals.
You have goals — whether you’ve written them down or dream about them from time to time.
Goals are great. But to truly be a goal, there needs to be a plan for accomplishing them. Otherwise, they aren’t goals…they’re just…dreams.
Money should not be your end goal. Rather, you should treat money as it is: a vehicle that gets you from where you are to where you want to be.
Do you want to travel year-round? Do you want to own a ski lodge in Aspen? Or maybe you’d like to kick back with a cocktail while you watch the waves gently brush the Gulf Coast.
Whatever it is you want — it’s up to you. But so is taking action.
To fulfill these dreams, you must attain financial stability and you must accumulate enough wealth to provide financial freedom.
I GET IT. Your first reaction to that is probably a little dismissive. “Eh, yeah I see what you’re saying…but that’s way easier said than done.”
You’re absolutely right it is. But it’s not as difficult as you’d think. With the right blueprint (read me next) and enough self-discipline — you can achieve these seemingly unrealistic goals.
You want to relieve financial stress
Financial stability is two-pronged: not only does it help you realize your dreams — but it also alleviates financial burdens and stresses.
Being up to your eyes in debt, living paycheck-to-paycheck, feeling uncertain about your retirement (whether it’s imminent or decades away), worrying about if you’re saving enough or investing properly. These are all heavy burdens that can take an emotional toll.
And scare you into financial paralysis.
The tallest hurdle when it comes to financial stress is finding a solution and committing to it. We’re so quick to put off our problems to begin with. Financial ones seem to take an even further backseat to our other life priorities.
You want to live a desirable lifestyle
You might be wondering how this differs from achieving life goals. A “desirable lifestyle” definitely sounds like a goal, right?
The difference here is that I’m referring to the lifestyle you live while you’re working to achieve those goals. In other words, the quality of your life during the grind to success, not after. You could rephrase this one as a “desirable and affordable lifestyle.”
Having your finances organized lightens some of the weight of life’s unknown. Spontaneous worries — like “Can I afford this?” or “Will I have enough for rent?” — are no longer as frightening.
It’s powerful to know what you can and can’t do — based on your spending capabilities. It helps set the parameters of your financial lane (i.e. living within your means) and helps you avoid crippling your future because of irresponsible decisions in the present.
Take budgeting as an example. No, it’s not a sexy topic — nor does it sound like an exciting activity. But it’s a critical habit if you want to reach and maintain financial stability. Why?
Because you need to know how much you earn each month, you need to know where you’re spending your money.
Budgeting unlocks invaluable insight into your lifestyle choices. It reveals expensive habits and areas you can be more cost-efficient.
It allows you to be more comfortable with your decisions.
You want to build long-lasting stability and security for you and loved ones
Setting up your financial foundation is essential to long-term sustainability and growth.
There are a few components of this infrastructure:
- Short-term liquidity for your day-to-day life
- Emergency fund for the unexpected
- Investments for your life goals, such as a house, wedding, education, etc.
- Life insurance as a safety net for your loved ones
With this blueprint in place, you can start allocating earnings accordingly while you work towards financial stability.
This can take time, but it wouldn’t really be financial stability if it were only temporary. The idea is to make it last. Whether that’s for your future self, your partner, your kids, your family, whoever.
This stability provides invaluable peace of mind.
Closing Thoughts & Actions
So, you’ve got some reasons why you should prioritize organizing your finances, such as achieving goals, relieving stress, living comfortably, and creating stability.
Maybe the better question is: why haven’t you taken control of your finances yet? Why not start now?
Just by reading this, you’re starting to take steps towards financial stability and freedom. Now that you have an idea of why you should take charge of your finances — it’s time to figure out how. Take a gander at this post, which will walk you through a self-assessment of your financial profile.
Do you want to learn more about personal finance? But without the complicated jargon and dry explanations? Sign up here for Bits — our personal finance newsletter.