Ok,the few days I have been talking about about a financial plan, and the need of following it to the letter. It is probably advisable that you understood the importance of having a financial plan and keeping up with it. As I have always said, you can never know where you are going, if you do not know where you are coming from. What this this means is that, a financial plan acts like a compass in your life, basically showing you the direction you need to take to reach your financial destination. The mistake majority of people make is having a financial plan in their heads, every financial transaction is done mentally and before you know it, you cannot account for all the money you have received. So, if you are really serious about changing your financial affairs, may be you need to understand the importance of keeping up with you financial plan as explained by Toks Daniels in the following article.
Possession of personal cash flow plan, and the dream of having financial freedom might make it harder for you to stay on the right track. Chances are that you would be so busy pondering upon your perfect situation that you are going to miss out on the important steps that have to be taken in order to acquire financial freedom. Most people know what to do for acquiring financial freedom, but majority of them have a problem in having financial freedom in the long run. Momentum is a solution to this problem; it helps you to stay focused on your financial plans.
Importance of Momentum in Personal Finance
Getting started should be the most difficult part of your financial plan as compared to staying committed. Exceptions are the evil in the finance world. They distract you from your plans of financial freedom, and thus don’t let you stay committed. However, the effect of exceptions greatly depends upon how you handle them. To ensure that you stay committed you have to be consistent and avoid making exceptions. No exceptions and consistency lead to an ever gaining momentum which makes it impossible to lose the commitment. To achieve your financial freedom, all you have to do is stay focused & consistent and make no exceptions.
A simple example is of a car, it wields more energy when you start it as compared to driving it. Momentum carries it once it starts. If the car doesn’t stop before reaching its destination, the momentum will keep it going without using extra energy. However, if it stops various times during a journey, every time that it is needed to start again, extra energy will be required to start the car and gain the momentum. It is exactly the same scenario with your financial plan. Once you start it, don’t take breaks. If you do, you might lose track of where you are heading, and it will difficult for you to re-start. However, if you don’t you will be more committed to your financial plan, and you will achieve your goals soon.
The key to keep the momentum going, is not letting distractions intrude. Waving off essentials by simply saying that you are too busy or you can do it later is only heading you towards the danger of the break. If you let this distract you, you will have to restart all over again. Performing little with consistency is better than performing more with inconsistency. A little consistency will bring you closer to your finance goals while it’s the other way round for the inconsistency part. To avoid inconsistency, ensure writing your spending journal daily. Don’t avoid it because avoiding will only turn it into a huge chunk of work for you which will make it even more difficult the next time. Chances are seeing the size of work, you’d procrastinate again.
Maintenance of Momentum for your Personal Finance Goals
There are a few tips and tricks for maintenance of momentum in your financial plans. You just have to be consistent and have a few finance habits that you must repeat consistently. The word in focus here is consistency. Take 15 minutes daily to write your spending journal. Keep a certain percentage from every pay check for investments and DON’T let exceptions distract you.