Quote of the Week: "The secret of getting ahead is getting started."~ Mark Twain.
In personal finance as with all things in life, simplicity is king. It is great to make detailed extraordinary paths to success. However, if the plans created are complicated, they often intimidate us and as a result are never implemented. Simple plans have the psychological impact of motivating us to take actual actions to realization by removing the excuses which immobilize us.
Do Not Depend On Your “Motivation” And “Willpower”
For most people, lifestyle inflation is real. The more disposable income we get, the more our wants increase. This means that with every pay check we have to battle new, but often non-essential, items in addition to our regular expenses. If we force ourselves to make these decisions monthly, we more than likely will compromise eventually. The key to this is to remove the emotional decision making aspect by automating one's bills, investments and debt repayments. Studies have proven that automation produces better results than depending on willpower and motivation, as these often prove difficult to control.
No Need for Expertise
At Zimele, we always advocate for personal financial literacy. However, as with all things, balance rules! Too much information can leave us confused and immobilized meaning we never act on what we do know. As we search for that blockbuster financial revelation that will push us to millionaire status, let us first use the basics we do know. We all occasionally get sucked into the search for genius financial solutions. We hardly realise that this is a subconscious avoidance of the hard work involved in actualizing boring, yet tried and true financial classics like saving for retirement. While we live in a dynamic world where adaptation is essential, invention is often birthed off routine as it is a better way of doing old things. The takeaway is here is to start with the basics like automated saving, especially for retirement planning, and debt repayment while gradually improving on them.
Set Up Your Plan Today!
A key aspect of actionable plans is realistic timelines. Most plans never get worked on as they require much time planning or implementing. While firm foundations are should never be compromised, they are built by putting together many simple blocks with specific timelines.
Conclusion~ To attain the financial freedom you have always wanted, build on simple ideas off the top of your head today.