Saturday, November 13, 2010
By Ama Bartimeus
In the current economic climate, many people, young and old, are seeking avenues to enable them improve their personal finances and create wealth for the future. The cuts in spending and budgetary allocations as a result of the recession have spread like wildfire across governments all over the world. Securing the future has never meant so much to people than it does now. There is a new sense of urgency for people to take financial control of their lives and position themselves to be financially free and create wealth. In this new quest for financial freedom, there are lots of challenges that both young and old are faced with. It is important to be aware of these challenges, know how to deal with them and ensure that your financial situation does not get any worse than it was when you started the journey; and that any decision and action you take lead you a step closer to your financial goals and dreams.
1. Free Seminars: There are a lot of free seminars aimed at people hungry to change their financial situation and looking for solutions to their financial predicament. Most of these seminars give very good value for time but it is important to know that there are a lot of training programs and products which are sold as a complement to these seminars. While these may be very good programs to guide you along the way, they normally take you by surprise and there is the likelihood of buying even when you are trying to figure out how to get out of debt. To make things worse, some of these products and services are way too expensive for most people to afford. Your decision to buy any of such products, especially if your financial situation is already in a bad shape, should be based purely on the return on investment for the product or service and how long it takes, in your own estimation, to recoup the costs. Make sure the benefits far outweigh the costs and that you are not putting yourself further and further into debt. Remember that a lot of good debt can be as bad for you as bad debt.
2. Preparation: Plan your finances in advance. Avoid making impulsive buys. Give yourself time to reflect before making big financial commitments. Remember the whole point is to get out of debt, take control of your finances and start living better than you were before not worse. It may be good for you to start looking for those educational products that are not too expensive but which equally give you good value for money. Books and CDs can be purchased at reasonable prices and these can help start you on the journey for wealth. One thing to note is that when you start this very exciting journey, the key thing you need is an understanding of the options available as well as a shift in your mindset - the shift that give you the confidence to take required actions and keep you focused. Don't start with the big things. Prepare yourself mentally and psychologically by reading or listening to motivational and educational books till you are ready to start playing the big games. Remember that luck happens when preparation meets opportunity.
3. Personal Financial Management: I cannot stress enough the importance of getting out of debt and getting your sanity back, of focusing adequately on exploiting the opportunities and wealth creation strategies that you find on your journey to financial freedom, instead of worrying about your finances. Stop buying on credit. Don't buy if you cannot afford it. Learn to simplify your life to enable you take control of your finances. Don't live above your means for the next couple of months or even years if you are serious about creating sustainable wealth. Remember that if you are faithful and prudent with little, you acquire the skills to manage much. The more skilled you are at managing your finances, the more resources will be put in your hands to manage.
4. The Right Strategies at the Right time: It is important to choose the right strategies at the right time, that is, when you are adequately prepared and your mind is set to pursue that course of action. Many times, very good strategies fail because of bad timing. How much time and effort you need to put into the strategies being considered? Does your current schedule give you enough flexibility to take on time-consuming ventures? If you have a job, how would that impact on the initiatives you start? How can you manage your time wisely to enable you devote enough time to working on your strategies? These are important questions to consider when considering following particular wealth creation strategies.
5. Finally... Big seminars will give you inspiration but they may not be the answer when what you need is step by step support, encouragement and motivation to enable you hit the ground running with your new strategy. They are also time-consuming and may have the effect of shifting your focus. Once you are clear about your strategy, find tailor-made step by step services that will help you grow to the point where you can make the time and money to spend on inspirational activities The quest for financial freedom is a noble one. You only need to plan carefully and make sure you are aware of some of the hurdles along the way. If a better financial situation enables you to impact the life of even one person, it will be a great achievement. With time there will be a multiplier effect.