Someone said to me yesterday “If you make great choices today, you will have a great tomorrow.” Isn’t that the truth?
Then later in the day I heard something along the lines of “Yesterday’s choices created today. Are you happy with the life you’ve created?”
The quotes emphasize what we know to be true. Our choices affect our lives.
If we want better lives we have to make better choices. If we want to be fit and healthy we needs to exercise and watch what we eat.
If we want to have better relationships we need to spend more time with our loved ones. If we want to be better off financially we need to spend less money than we earn.
Since this is a personal finance blog and I’m a personal finance author let’s take a deeper look at our desire to be better off financially. We can make better financial decisions by tracking, measuring, and analyzing our spending and money management.
Tracking your spending is critical if we are going to change our financial choices. Before we can change our choices we need to know what our choices currently are.
Early-in-the-process tracking gives us our starting point. It’s the “You Are Here” arrow on the map. As we move along towards our goals, tracking becomes a way to make sure we are on target and moving in the right direction.
Another critical decision-making tool when it comes to finances is the budget.
The budget is the plan of how we expect the month to go. It’s a tool we use to measure our spending against to make sure our spending is in alignment with our ideals and desires.
Making conscious spending decisions will assure that your future is the future you want, instead of the future you end up with.
As you go along with your budget and tracking, you may want to analyze your progress. We may want to know if you are meeting your financial goals? If you are saving enough? Or, are you having enough fun?
The answers to these questions will guide you to make changes in your budget. Financial goals like saving for retirement aren’t met with a few big actions. These types of goals are met with small day-to-day choices.
Analyzing your results makes sure that your day-to-day activities are in line with your long-term goals.
Once we start making better financial decisions we will have a better financial life.
It can’t go any other way can it?
One of the things that will naturally happen when we start making better decisions will be that unimportant things start to get left aside.
As we lose the clutter in our lives, whether it be material or mental clutter, we make room for the things that are most important. This leads to a happier, less stressful, more productive life.
SB’s thought: This post made me philosophical. You might have skipped this post but, you made a choice to read it. It may have been in your destiny to read this post.
There might exist a reader somewhere, who’d get inspired by this post and would start making better choices in his/her life. And, that might change his/her financial life forever.
When I stand in front of a shop window, dazzling with latest electronics or latest fashion, I make choices. I quickly remind myself on more important things in our life that require money. I make a choice, 99% of time against buying.
My choices are based on information, which are derived after routine research on my assets, liabilities, budget and goals we set for us. If you are well-informed about your personal financial situation, your choices would automatically correct their courses.
Personal finance is mostly about making choices, buy or not to buy, invest or not to invest, spend or save, stocks or funds, etc. Thus, managing personal finance is nothing but making informed financial decisions.
Readers, do you make informed decisions when it comes to selecting one of the choices, for your personal finance needs?