Journey to becoming Financially Empowered
Financial Empowerment is a state of being Financially Confident. It’s about knowing where do you stand today financially and, know where do you want to reach, find the way to reach, and act on it to reach the goal.
Below are the 5 important components that can help you get started becoming Financially empowered:
1. Understanding your emotion
Many times, if you notice, our spending decision is attached to the emotion.
E.g.: Let me buy a new iPhone- it has such a cool feature, let me buy Mac- It’s a symbol of luxury, etc.
There is nothing wrong with buying expensive gageite, but rather start asking one question before deciding on buying expensive items — DO I REALLY NEED IT & DO I REALLY NEED IT NOW?
You will notice, just by asking this one question you will slowly reduce impulse purchasing. This will help you to have control over your emotion and take the right spending decisions.
2. Financial Literacy
The research has shown, many times poor financial decision has been taken due to lack of knowledge. From our childhood, we have never been educated on how to manage money or given education-related to money and that’s why once we start earning, a poor financial decision comes into play.
Financial Literacy is important because it will help to understand how money works whereas, Financial empowerment helps in making a sound financial decision for ourselves and help to make money work for us rather than we working for money.
3. Setting Priorities
It is essential to set priorities in all the field. While we are at work, we prioritize which work is urgent & important and we work on it accordingly. Similarly, it is important to know which financial goals fall under Urgent & Important and work on them accordingly.
Eg: Working on Money Mgmt. & Risk cover comes under Urgent because it creates Financial Security & Foundation respectively. But in reality, very rarely people work on it and they directly jump on investing.
4. Create a Game Plan
It is the most important part of your personal finance. It is much beyond money management planning, investment planning, etc. It’s about creating a roadmap that will help you to achieve your all-Financial goals. And, I use the tool “Financial Planning” to create the game plan and implement it to Achieve Financial Success.
My Golden Square of Financial Success
5. Accountability Partner
Keeping yourself accountable might be tough to follow Golden Square of Financial Success and that’s where it’s important to be a part of a community to get the fastest result by learning from the mentor & by having a company of like-minded people- willing to learn to become Financially Empowered to take better control of your financial future. Your accountability partner could also be your spouse, friend, a colleague who encourages and support you to stick to the game plan.
Hope this article will help you to take your 1st step of “understanding your emotion” in your journey to becoming Financially empowered.
All the best in your journey towards Financially Empowered!
Thank you,
Salma Sony, CFPCM
Thank you for reading.
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