I keep on saying it, many of us are very bad at numbers and that is why we keep running around circles. Our finances always look unhealthy year after year. Most of us fail to acknowledge what is, this is something I always try to personally solve for myself. Unless you admit financial weaknesses, you won't even be ready to solve them. Having an inflow of money doesn't mean you are rich or financially free. Punch your calculator more carefully to realize your expenses and you will realize how vulnerable you can be.
Understanding your means and centering your affairs within your capabilities is vital, yet it shouldn't stop there. Where did I get the inspiration to write this article? I read motivational quotes from an enlightened friend and during his financial tips, he advised us to live below our means. This is not a bad idea, in short, this is where wealth creation starts. Nevertheless, we first need to realize our means and not just stop there. Settling for less from my point of view is not financial advice.
When it comes to understanding your means, just as earlier said, you have to admit financial discipline. This is something we care less about. Of course, accounting is always very boring yet remains very vital. One of the ways I always pull myself back from a spending spree is sitting down to punch my calculator. The moment I get my actual debt, I always sit up. My plan from that moment is always how to get out of that debt. At such a point, expenses must be halted and only those that will trigger income will be prioritized.
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Some don't even know how much debt they are in, the idea of when I get my salary I will clear this or that always fails. Involving yourself in expenses that tears your wallet is a fake life. Assuming you are worth spending a dollar daily and you throw yourself to $3 dollars, it means you are minus $2 daily. Calculate this in a month or year and you'll get to know how financially vulnerable you are. There are lots of corrections we need to take on ourselves, numbers don't lie. No matter how careless you may be, the accumulation will always remain real even in your absence.
Again I will say, it is one good idea to live below your means but don't stop there. Why? Do you know, in actuality, living below your means is not a criteria to make you rich. So what does it mean to be rich? What does this also imply? It talks about financial freedom; here you are able to afford ALL your life necessities. From here, it shows that living below your means is not a standardised way of life but rather a medium to get there.
What am I saying here? Many accept living below their means as a perfect way of living. In the process, they don't go far and in a struggling economy, they will settle for a dehydrated way of life. Anybody living below his means without any intention to expand this means is financially vulnerable. When I wanted to start a business, I had to squeeze myself to raise the needed capital. Was it an enjoyable process? Of course not, it really showed in my health but the latter covers the former grinding.
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There is a need to live good and healthy but these things take time. Most of us are not born with silver spoons and we have to gradually climb the financial ladder. When I look at the current situation of our country I am always left to answer questions like, 'what would have happened if I never expanded my means?'. You may not really understand because this is my personal story, the fact remains this, my business would have run bankrupt by now. I had to squeeze myself another time to raise extra capital and forge forward so I could generate much revenue.
To conclude, let me add, the amount of revenue I was generating by then was not enpugh, it couldn't cover all my needed expenses. My financial drawing board showcased all these red flags. I had to realize my means, cut down several expenses and grow myself from there. It is not always an enjoyable task when you have so many forgone alternatives. Am I saying I have reached financial freedom? Not yet but I must add, there are lots of improvement and this is a big encouragement. The truth remains this, avoid a hyped lifestyle. Realize how much you are worth. If you are capable of spending a dollar daily do so, don't try to impress another.
Nevertheless, that doesn't mean you should settle for that, look for possible ways to expand your means. Before you know it you will afford $1.5 dollars as daily expenses and it will gradually keep increasing as long as you are ready to put your capital to work. Hypes don't last, fake life is fake and until you accept what is, it becomes very difficult to grow.
