It’s ironic that St. Patrick Day is just around the corner, yet we are writing a post that is anti-luck. That’s because no amount of four-leaf clovers can make a person financially responsible. Fortunately, for all of us, there are some really easy tasks that will keep us on the right path. We’re going to explore these methods throughout this article; so, grab your notepads and continue reading.
Financially responsible people are more proactive than reactive.
First and foremost, financially responsible people are not under the pressure of account fluctuations because they are already prepared for hardships. They understand their expenses far before they are spent, and they are tracking their incoming cash flow. What this means, is that one should create a budget and understand the movement of their assets. How do we do that? Plain and simple. Just refer to our previous post on auditing your spending; then, check back each month for the continuation of the plan. For now, remember that being prepared is the key.
Needs come before wants.
In the budget of a financially responsible person, needs come before wants. Additionally, things that fall into the need category, are heavily scrutinized. Things like rent, utilities, a work uniform, and transportation payments all fall within the needs category. Things like new clothes every week, do not. A basic list for groceries is a need. Having sushi on the menu (and constant take out), is a want.
They also live within their means.
To master this art of being financially responsible, one must live within their means. There is no denying that it’s beneficial to use credit in a strategic way. However, pulling out your MasterCard every time the itch to buy a new pair of Prada shoes, is not. People that are good with money, do not over-do it with their expenditures. To sum it up, if your income does not support purchasing steak dinners every night, then nix the beef.
Their 401Ks get attention.
People that are financially responsible max out their 401k contributions. This is all part of the long term thinking process and preparing for a fruitful retirement. It’s understandable that not every person will be able to contribute the maximum allowed amount; but, everyone should at least try to meet their employer’s match.
They understand that life is not ALL easy.
Don’t get us wrong. We see the sunny side of things. We know there are great adventures in epic explorations. On the other hand, we also hold the reality that life does not hand us everything we want on a golden platter. Financially responsible individuals also understand this concept. They know their goals include hard work and sacrifice. Not every decision will be easy; but, every decision will be necessary. Moreover, people that do good with their money know the need for consistency and continuation.
The saying is true…
Finally, we leave by affirming our belief that you do not need luck to be financially responsible. You only need to know how to prioritize, live within your means, and persevere in your decisions. To everyone out there, Happy St. Patrick’s Day.