#ChooseBetter: Sustainable Finance in Time of Crisis
3 min read
There are times in our lives when we hit a financial stump; we can’t seem to get a proper hold of our expenses or our savings are slowly dwindling and we don’t know why. But, the good news is that you can still get out of that stump and turn things around
In case you missed this #EllanaLifestyle session aboutSustainable Finance in Time of Crisis, here are some tips to gain financial wellness from FINbassadorRynah Ventura:
Set your financial goals.Don’t focus on the present; instead, look down the road. Do you know what you want years from now? That has to be clear. You have to start dreaming, put it into a vision, and act on it.
Have the right mindset.Money is important and is not the root of all evil; the love of money is. Being holistically well includes being financially well and living a comfortable life. Understand and set the parameters of what is a comfortable life for you.
Have the right character.You can lead a horse to the river, but you can’t make it drink. That means that you have to take action to be financially well. The philosopher Plato said, “The first and greatest victory is to conquer yourself,” which means that your discipline plays an important role in this.
Do a financial assessment.The hardest part of a problem is when you don’t know that you even have one. One step at a time, little by little, you have to understand your financial situation, starting with a financial assessment. It includes your statement of income, statement of net worth, and your cash position and liquidity.
A statement of income shows you sources of your income (inflow) and where you use it on (outflow). You have to be diligent in recording what came in and what went out, and in computing the difference. The result, which can be a deficit (negative), a breakeven (somehow positive), or surplus (positive), should help you assess better.
When we hit a financial crisis, keep in mind these goals: survive, sustain, and succeed. Remember these tips to help you achieve those goals:
You are your most important asset. Therefore, you have to love and take care of yourself.
Understand that no man is an island. Find a support system and talk to them.
Learn the art of budgeting. Know the difference between needs and wants. Needs automatically go to your operating expenses, while wants should be evaluated first.
Create something out of nothing. Assess your things and sell those that are not needed. There are times that you need to forget about sentimental value.
Create something out of everything. Try to make something out of your passion, whether it’s cooking, playing music, or whatever it is that you’re good at.
Have the right mindset. What the mind conceives, the body achieves. Choose the “wealth mindset” over the “poverty mindset” and think as if you’ve already achieved your financial goals.
Be a responsible debtor. We all have our own needs and the money that we borrow is actually hard-earned money by the person who lends it to us, so make it a point to pay it back within a reasonable time. Arrange a doable scheme that helps you repay it.
Be positive. There is always a light at the end of the tunnel and challenging times always teach us something.
Want to learn more about managing your finances better? Watch our entire #EllanaLifestyle session with Rynah Ventura below: