While there are some who consider financial success as having a few million to their name, for others, it is the ability to afford a roof over their head and other basics without incurring huge debts. However, not all financially successful people have millions lying around in their bank accounts.
The only way to achieve financial success is to manage your money responsibly. Of course, it is easier said than done.
So how do you join other financially successful people? Just like losing weight, attaining financial success does not have to be another New Year’s Resolution that does not end by mid-January.
For starters, it is great that being financially successful is on top of your goals’ list. However, turning your goals into actionable steps is the only way to meet your goals.
Here are the 7 P’s Used by Financially Successful People:
1. Plan
Everybody wants to be financially successful. But why is that we have just a handful of financially successful people? The biggest secret to becoming financially successful is that it does not just happen. Instead, it all starts with a well laid out plan and committing to it.
Keep in mind that you will need several sub-goals to help you meet your objective given that your financial life comes with numerous facets.
For you to reach your ultimate goal of financial success, it is paramount that you lay out plans for the different areas of your life. If you want to live a debt-free life, first, never spend every dime you earn on unnecessary things. Secondly, save as much as you can.
Your income not only need to meet your current needs but also your retirement needs.
With a defined plan, structured around what you need, you can easily ensure that you have enough cash to sustain the lifestyle you hope for.
We are wired to focus more on short-term plans over the long-term ones. However, regardless of how well we budget, emergencies are guaranteed to pop up. When such instances arise, you will need to revise your budget.
Revisions should not be for unnecessary expenses but for the planned things on your budget.
When planning your finances, remember to include your car and home repairs, yard maintenance, which are common sources of unbudgeted costs. Also, plan for family emergencies, natural disasters, and any other situation that may result in financial surprises.
2. Patience
Patience is a key ingredient in financial success. Although hard, ask all financially successful people and they will tell you that patience is worth it, especially when struggling with your finances.
Take all the necessary steps and you are guaranteed to be on the right track to financial freedom.
Although the path ahead is challenging, you should not be discouraged. Even if you are only saving a few dollars per month, in the end, it will amount to something. In a few months, you will look back at what you have attained and be glad that you had the patience to get through it all.
With patience, no obstacle can discourage you from your goal. The time it takes and the challenges faced along the way are all considered necessary considering the reward.
3. Persistence
Like most people, you have probably set several New Year’s Resolutions most of which died a few weeks into January. You probably had planned to join a gym but after January, you never renewed your subscription.
Well, this is the same case with most people’s financial plans. Whether it is to boost your income, invest, or stick to a budget, all financially successful people set a resolution and see it through. It all begins with a plan that is followed through. Unfortunately, for most people, after a few months, they revert to their original behavior.
Success is not final; failure is not fatal: It is the courage to continue that counts.
– Winston S. Churchill
It takes self-discipline and persistence to make changes in your financial life. The only way to join financially successful people is to stick to proper financial principles. Your financial success is intertwined with persistence.
Once you set your goal, you must stick to it for the long run. It takes time to adapt to the new plan and to overcome your fears. Setting flexible goals and sticking to them will help you to nurture better financial habits.
4. Practice
As stated above, financial success demands to practice good money habits, which will not fall in your lap just like that.
To begin with, you need to identify these habits and practice them. This takes both time and effort. However, doing so makes your financial life much easier and less stressful.
Although developing healthy financial habits tend to take years of experience, being responsible with your spending makes the effort worth it.
With your finances under control, you will be debt free, maintain a strong credit score, and be able to make a purchase that initially seemed out of reach.
5. Performance
Concentrate on improving your performance and making the most of your time. Your performance is essential to achieving financial freedom.
In all you do, including setting your goals and financial planning should be geared towards helping you determine where you should focus your effort the most.
Your ability to work on your performance and concentration ensures that you attain financial success, perhaps more than any other tricks known to us. What you focus on the most and spend the most focus and energy on should directly be in line with your financial objectives.
Spend your energy on what helps you earn the most income.
6. Purpose
When you start your quest for financial freedom, it is important that you know where you are going. This is a crucial key to help you stay on the right track.
Your purpose in financial freedom should be unique to you.
Having a purpose gives you the willpower to stay on the right track. Since our personalities, beliefs, and values are different, we all have a unique understanding of financial success.
Most financially successful people view it as the ability to sustain a comfortable lifestyle without spending too much money. Others may view it as the ability to afford certain activities and hobbies.
Some people may need more financial resources to acquire what they desire in life, such as traveling across the globe and sustaining expensive lifestyle assets. Most people fall between the two extremes.
The first thing to consider is defining what is of most importance in our lifestyle. What drives you to leave your bed every day? What gives your life a sense of purpose and fulfillment?
For self-analysis to be effective, it must be done specifically and consciously. Write down some concrete ideas to help you prioritize on what matters the most.
7. Passion
Passion is a key ingredient to your financial success according to an Entrepreneur.com article. You must ensure that it is intertwined with every part of your financial life, include your job and saving habits.
Be passionate about saving as you are about your job. Love the idea of being financially stable and work to ensure that your passion does not wither midway.
If you are passionate about financial freedom, nothing can stop you from attaining your dream. Passion makes you feel unstoppable and nothing can obstruct you from joining the rest of financially successful people.
Final thought
We all dream of the day when we can retire from work and venturing into something that we always wanted. We fantasize about the days when we had no bills to pay and loads of cash in the bank.
Everyone wants and dreams of being free from money worries.
There is an old adage that money cannot buy you happiness. While that is partially true, it is obvious that having a good stash of money can help get rid of lots of problems and make life easier.
When it comes to attaining financial freedom, it is as if we all have a neon light flashing in front of our eyes. This light identifies your ideal goals in our financial life. Whether you attain financial success, it all depends on your mindset and commitment towards your goal.
This post originally appeared on Moneylogue.com