Personal finance management: What is your greatest motivating factor?

In this post, I thought of discussing a basic thing in personal finance – Which factor(s) motivate you the most to manage your personal finances.

There may be more than one factor which motivates you to manage finances and build a secure financial future.

So, let’s find out what are those factors?

Maintaining your present lifestyle

All of us maintain a definite lifestyle and want to improve it. Even if we are happy with our present lifestyle, we need to take steps to secure it, so that nothing can destroy the financial footing.

To do so, you need to plan a budget and save a certain amount so that your future is financially secured.

A good tip – Deposit a certain amount to your savings account and then plan a budget with the remaining one. Doing so, you will surely save a significant amount every month.

Along with it, you need to invest your money for profitable returns in the future.

Improve your social status

Another great motivator is to improve your social status.

We all know that we need to have a definite financial footing to have a social prestige and position. Only if we can have the money power, we will be able to buy a good house, drive a good car, or follow other lifestyle basics.

To do so, we need to save a significant amount every month with which we can invest for a profitable return in the future.

So, try to improve your financial condition to enjoy a good social status.

Survive by withstanding inflation

You have to take into account inflation, especially when you are planning your retirement. The amount you are spending on grocery now may not be sufficient say after 10 or 20 years.

So, you need to plan accordingly to survive with the inflation.

Moreover, first you need to focus on the basic necessities and then you can plan for your luxuries.

Competition is not always bad

I might sound strange if I say that competition is good when the question is about managing the personal financial situation.

Yes, it’s true that you shouldn’t compete to keep up with the Joneses and spend on unnecessary items.

But, at the same time, you can compete to save more and improve your financial situation. This is after all a healthy competition.

Self-realization is the best realization.

If you want to achieve something, you will leave no stone unturned to achieve your goals. So, always motivate yourself and never allow anything to demotivate you from your goals and aspirations.

Set a reward for yourself – It can be a vacation or an item you wanted to purchase for long, once you attain a goal. This will help you stay motivated throughout, achieve your goals, and in turn, continue improving your personal financial situation.

Read more: Are your finances feeling low? These money rules will make them happy

If you think that you can’t manage your finances on your own, then don’t hesitate to take help from others. A friend or a family member, who knows how to manage finances, can help you overcome your problems along with helping you to follow the right track. You can also take help of a financial advisor if you think you need a bit guidance to manage your finances effectively.

Wait! Think for a moment! What do you think is your greatest motivator to manage your finances?

Do share your thoughts with us…

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Categories: Finance, Personal Finance