Money Goals or Financial Discipline; Which is Better?
As much as it is advisable to have money goals, the ultimate way to achieve this is through financial discipline.
Financial discipline is your ability to prudently manage your finances so as to meet your financial goals.
Either to save towards buying your first car, to buy shares of one of your favorite companies, to lease a house, to go on vacation, or to change your phone. Regardless of what financial goal you may set for yourself, your distance to achieving it depends on your level of discipline.
Becoming financially free spews from your discipline, and because we are creatures of habit, a way around it is to begin now when we have just a little to manage.
It’s about time you realized that money is never too little to manage. Managing your finances from now builds your capacity to manage and grow your net worth in the long run.
I could have sworn that I would do better with a raise in pay, but somehow now, it’s becoming difficult to handle. With the constant increase in the cost of living, I wouldn’t deny not being in between reducing my saving and increasing my spending.
This is one reason why building financial discipline requires you to keep learning ways to consistently live below your means.
So how about we look into a way to go around it?
Firstly, It’s about time you become more surrounded by activities and circles that fosters financial discipline.
For instance, if your financial goal is to save more money, a way to achieve it might be by joining a saving money challenge with a community that will keep you accountable, just like I would be doing with a few of my friends this year.
To get rid of impulse spending, minimize the number of vendor pages you visit on the web, or delay going to the market except where necessary.
A great way to increase your financial knowledge, would be by following pages of financial advisors on social media. This increases the chance that the first thing you see when you log in on IG is content on financial literacy. Hence, you subconsciously become more financially aware.
If your money goal is to clear out your debt, take a conscious effort to pay up your debt, and spend below your means so as to reduce your chances to take on more loans in future period.
It is imperative for us to focus on living below our means in our early stage to becoming financially free; doing this affords us the ability to save more and increases our capacity to invest.
Therefore to cut down on your cost of living, you need to create a budget and critically look for cost-effective alternatives to cater to your needs; such as buying food items and toiletries in bulk, using public transport, buying wardrobe essentials, and taking advantage of sales discounts among others.
Do check out more strategies to foster financial discipline by reading the article below
Ultimately, your financial discipline is fueled by your financial goals. How high it is, would determine how disciplined you need to be to achieve them.
Money goals are important as they provide direction and motivation to want more. Financial discipline, on the other hand, supports your ability to go further by building a life with money rather than having your life built around money.
Just so you know we are in this together.
I wrote down my financial goals for 2023 in this article below.
It would be great to hear some of your money goals too.
Cheers to becoming financially free.
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