Transform Your Finances in 6 Months with a Clear Plan
Individuals desire to bring change in those life areas where they experience stagnation. Napoleon Hill rightly writes in his book Think & Grow Rich that “desire” is the starting point of all achievements.
But why do we feel this “burning desire”?
Life has different stages, and when a person’s potential reaches its maximum at a particular stage of life, they feel the ‘burning desire’ to aim higher. Focus on 2-3 life areas that require change, and think about the impact it will have in your life. This will help you in making goals.
Use the 80/20 rule defining that your 80% lifestyle is an outcome of your 20% habits. Keeping this principle in mind, consider 2- areas that need to change. Now, change can be financial, environmental or cultural depending on individual needs.
Select the financial situation, where you need the greatest change right now. You wanna generate $1000 per month as an additional and passive income stream as you’re tired of living paycheck to paycheck. Choose your life area where you feel the greatest need right now.
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Let’s practically discuss how to bring a positive change in your financial position within the next 6 months in this article right now.
How to financially change via a structured plan in the next 6 months?
It is not sufficient to say ‘I want to change my life.’ Determination, planning and implementation are essential for inviting growth and productivity in our lives. Now, If a person wants to make his/her financial position better in the next 6 months, what he/she do first?
Clarity of Mindset:
Before we discuss the main idea, let’s say we have the main goal to comfortably retire in our 60’s. This is what an individual desires, but for this he/she needs to make a plan.
Financial planning makes a big difference here. It is about determining your goals and figuring out how to utilize the financial resources to reach your goals. It is about accomplishing your tasks, and more about investing. It’s all about management like controlling spending, protecting family assets with insurance, reducing taxes, managing credit, paying for college, increasing savings, planning real estate, buying a house and comfortably retiring.
The Financial Planning Process:
Take systematic steps for finance planning. Research consistently shows that financial capability is an earned skill, not an inherited trait. So you need to train yourself, as you’re not born with it. For instance, OECD studies reflect on adult financial literacy that basic knowledge gaps are globally present, which underscores the need for a structured financial education. So actively embark on this training.
Goal Setting:
Be specific about your goal in terms of what you actually want. You cannot say “I want to be rich.” They are daydreams, not your goal. Make realistic goals by writing them on a piece of paper.
Set a short-term goal for the next five years like “I want to buy a house in the next 5 years.” Or set a long-term goal “I want to retire at age of 60.” Make your goals more realistic and more specific.
Research:
Research is the backbone of a well-designed financial goal. Financial literacy is significant through great research. Planning has greater cognitive and mechanical benefits, which directly supports the idea of ‘research’ for success.
Think about your present money spending habits, and then research habits damaging as well as good financial habits. Critically evaluate your current situation. Do you’ve enough savings? Do you’ve too much debt? Do you have insurance?
Make a spending plan by listing down all your income and expenses. Calculate your net worth through proper financial planning.
Create Action Plan:
After research analysis, describe your goals and figure out how you can achieve them by establishing new spending and saving habits.
Plan Execution:
Don’t make your plans useless by not executing them. Motivate yourself, and move towards call to action. Make a realistic time table within the first week of working on the action plan.
Monitor your plan:
Keep an eye on every changing circumstances to accordingly make adjustments. Maybe you have a new job, and you can boost your savings. An unexpected crisis may push back some goals; hence, be honest with yourself and your financial habits.
Conclusion on Transform Your Finances in 6 Months
The journey of achieving financial independence within the next 6 months would be a profound and internal shift. When your potential will reach its maximum, the internal ‘burning desire’ will demand decisive action and relentless training.
Definitely, you’re not born with an innate ability to manage complex finances, but you must have the blueprints for your self-education. Research-based planning is required to bridge the gap between desire and destiny.
Restructure your financial engine, optimize your energies and embrace the research-based planning to achieve your high-level goals by converting them into actionable steps. It is the most effective tool for overcoming procrastination.
So, take some time and plan to prepare a structure for achieving your financial freedom through training. You can also get help from any financial advisor, too. Your future is not determined by what you desire, but by the disciplined plan you execute today.