Change is the only constant thing in life - Heraclitus
Do you believe that the situation of your finances can be changed within the blink of an eye? It just depends on your decisions today not yesterday not tomorrow. Key decisions you make about your finances can make or mar your financial status today. It is that key.
Do you think savings, investment, generating more income via multiple income streams or do you like raising your expenses on the latest car, cloth or jewelry. This is not to say that acquiring life conveniences is bad rather it is a case of if it’s an instant gratification or a delayed gratification on your path.
But this isn’t necessarily an article about delay gratification as against instant gratification but a case of making simple key decisions that can make or mar and/or consequently improve/destroy your financial situation.
There is a clear distinction between the things that we feel we need as against the things that we want. Wants simply includes uncontrolled, unmeasured desires that stem for societal pressures, peer pressures and all other pressures that don’t really matter at the end of the day. Needs on the other are clear indicators of a desire to improve a truly important aspect of our life with the expense. Are you in the quest of acquiring a need or a want?
An age long adage says “Once you ask yourself, Can I afford it? It simply means you can’t afford it”. This is particularly true because no one asks if they can afford a candy, but most times you find yourself asking this question when the decision lingers on the borderline of convenience as against seriously hurting your finances.
To this effect we have simply devised a newer approach to making simple key decisions that can affect your financials today. Hence always ask yourself the following questions before committing to a new expense.
- What is the immediate financial implication of the expense on me, by how much in terms of percentages does this creep into my savings?
- How long was required to save this percentage of savings that this current expense would incur. This is questions is particularly needed to validate the importance of the expense to be incurred
- Is this expense a potential investment or potential liability borne out of the spur of the moment?
- What potential backlash can I incur by making this decision to incur this expense at the present moment in time and tentatively in the future
- How do incurring this expense affect my immediate family
- Does this expense provide a way for me to recoup the finances expended or not
- What is the weighted
These series of questions if made on everyday expenses can be the difference maker in the matters that concern your finances.
Simple adhering to this thought process alleviates the need for you to consistently acquire items that you don’t need consequently building strength on your financials. So before acquiring that new toy, ask yourself … “Do I need it”…“Do I buy?”