Many of our skills and qualities do not come at birth but must be nurtured and developed. At school, we are often taught math, literature, good presentation skills, and so on.
When we finish our education and step into our careers, the environment and the colleagues we work with encourage us to improve specific skills needed to cope with our responsibilities in the workplace, and this gives us a feeling of fulfillment and belonging.
But what other attributes do you possibly want to improve?
A look at the statistics will quickly show you that most of us are not very good with money. So, why don’t you think about “How to develop financial maturity”!?
There are all kinds of personal and professional development courses in the market – but have you ever seen a course that teaches you how to be financially mature? Probably not, and here we come to the rescue.
Commit to cultivating а culture of staying on top of your money
A well-known maxim states that money is more valuable today than tomorrow. With patience, practice, and perseverance, you can build your financial maturity, so that the money that you earn today, instead of leaving your pocket, is in a constant cycle to help you become wealthy in the future.
All the ingredients are here, and all you need to do is just start building your financial maturity and not become a victim of the “rat race” culture.
Take responsibility and get your numbers right
This is neither the funniest thing to do nor the easiest, but it is the first step in adopting a more proactive approach to financial maturity.
To get your numbers right, simply catalogue your assets, list all your debts, and write down all your income and where and what you spend it on. This should give you a sufficiently good picture of where you are currently.
Be wise, and take on a growth mindset
According to a FINRA Investor Education Foundation survey among individuals in the United States, “Just over two-fifths of respondents (41%) report spending less than their income, 36% spend about equal to their income, and 19% spend more than their income.”
Don’t spend more money than you make.
Embrace the challenges and start building your own emergency fund, developing a personal finance strategy, and – why not – investing. Pencil and paper, and perhaps an advanced application for asset protection, will help you cope with this difficult task.
Manage your priorities, and separate needs from wants
Very often, in our desire to reward ourselves for our efforts, we buy things that we do not really need. There is nothing wrong with this, but it is important to make a clear separation between needs, savings and wants when it comes to spending your income, otherwise, you can be easily confused between needs and rewards.
Financial maturity requires discipline and a responsible mindset.
Make sure that your emergency fund and investing are in the “need” category, not the “want,” and make sure you save first and then spend money on rewards.
Don’t forget to set your long-term financial goals
Without long-term financial goals and following our personal finance strategy, we tend to keep our finances as they are. The right goals help us move from where we are to where we want to be.
Your long-term financial goals and personal finance strategy should also include your legacy. It is natural to start considering what you wish to leave to your loved ones. This may involve a digital legacy, as well as many asset protection and financial tools.
Don’t buy into get-rich-quick schemes
Quite often, people, on their way to financial maturity, are lured by opportunities to “get rich quick” and invest in so-called Ponzi schemes. Financially mature people know that it is not the lottery and Ponzi schemes, but hard work, common sense, а proactive approach to your finances that lead to wealth.
Create financially mindful habits
Examples of such habits are:
- Don’t avoid expenses that will give you safety and get you out of trouble in the future.
Buying a savings life insurance can help you save money, follow your financial plan, and, at the same time, give you the security that if something happens to you, your loved ones will be financially protected.
- Be mindful and don’t overlook small expenses.
Very often, people imperceptibly land in a situation where they have empty pockets without buying anything significant. Why does this happen?
It’s easy to spend money on small things, and because they are small, we do not even worry about noting these expenses, but at the end of the day, we find we have spent everything we had. Little drops of water make the mighty ocean.
- Be conscious while buying expensive things.
“I worked so hard for this promotion. I took a C-level in my company, and now I really deserve that nice car.” Have you ever heard such voices in your head?
Be careful! Buying expensive man toys, jewelry, and clothes can become a lifestyle virus that blocks your chances of wealth creation. It is important to consider what the opportunity costs are when making a significant purchase.
Be consistent, and don’t give up
Consistency is the key to many achievements, and financial maturity is not an exception. Improving your financial skills and maturing them is a journey that’s worth taking!
Start today, not tomorrow
It’s easy to justify ourselves when we know we need to start something now but we don’t want to do it right away. However, we won’t thank ourselves in the future. The best way to stop procrastinating is just to start doing it today, not tomorrow.
Remember, the little phrase “I have no money” can protect otherwise financially mature people from spending too much on “want” things that make no contribution to their personal financial plan.