Let’s cut to the chase. Every year, the lists of New Year’s resolutions bulge with promises of wealth building, frugal spending, and other moneymaking undertakings. Then twelve months and an empty wallet later, we all feel like a dunce when it comes to our finances.
Well, a dunce I won’t be anymore. So, to the tune of imaginary drum rolls, I herald the start of my Great Financial Adventure 2010 edition. I’ll ward off the temptations luring me to imminent bankruptcy, or abject poverty, whichever comes first.
Rude Awakening: The reason cash is described as cold and hard is exactly that – it could be such a cold and hard endeavor.
Believe me. I’ve experienced the pitfalls that led to being a financial nincompoop, and it helps to mark them as early as you can:
1. High expectations. “Oh yes, I’ll earn my first million this year, but I don’t know how to augment my current income.”
2. Vagueness. “Hmm, a retirement fund sounds nice. Poof, end of story.”
3. Complacency. “Nah, I’ll just double the money I’ll set aside on the next payday, so as to accommodate my shopping splurge this week.”
4. Frustration. “Well, there’s always next year.”
Not-so-Rude-Awakening: Outlive, outsmart, and outplay – money need not be as cold and hard as frozen assets.
Seeing that there are no hard-and-fast rules for financial freedom, I’m assuming that it is but an adventure, like everything else in our life. Thus, I commit to:
1. Outlive my income beyond the next payday.
This simply means that I’ll not burn my payroll to the ground, waiting for the 15th and 30th to replenish my supplies. Outlive the normal cashflow!
2. Outsmart myself when urged to spend.
Any purchase must pass a litmus test, which begins with ‘Free’ and ends with ‘Borrow’. If the object of your desire falls in this conundrum, then there is no sense in parting with the hard-earned cash. Outsmart the biggest hindrance to prosperity, which is actually your self alone.
3. Outplay past failures.
Isn’t it about time to start winning the Battle of Finances? Save. Invest. And know the difference.
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