Too often, people only examine their financial behaviors during times of individual or social economic distress. But to confidently plan for your financial future, productive money management must be a constant, everyday pursuit.
Pursuing financial freedom is possible by scrutinizing how you manage money and adjusting your financial behaviors accordingly. Whether you’re confident of your financial future or currently experiencing hardship, here are seven time-tested principles that will support you throughout your lifelong financial journey and help you achieve your future dreams and goals.
Remember, Money Alone Can’t Make You Happy
Although cliché, identifying your beliefs surrounding money before you pursue it will help you develop productive financial behaviors. If you believe having a lot of money will answer every problem — or guarantee serenity — you’ll experience disappointment no matter how much wealth you gain.
Your Attitudes Will Affect How Much You Can Earn and Save
How you regard money will drive how you manage money. Even though our attitudes about money are established at a young age, it’s never too late to change. Choosing to be financially disciplined will help you see the long-term implication of your choices and help you start your financial future off right.
The Most Important Factor of Financial Success is Behavior, Not Income
An estimated 70 percent of all Americans are living paycheck to paycheck — no matter how much they earn. Many find that even after they attain great-paying jobs, their financially defeating habits keep them in perpetual debt. Changing your money habits will help free you from debt and move you toward financial independence.
Using Credit Cards to Fund Purchases You Can’t Afford Is a Never-Ending Mistake
Credit cards are debt — period. Although building your credit history is important, you don’t need more than one or two to do this. Wants aren’t needs, and it’s vital to recognize the difference before you start making purchases on credit.
Now Is the Best Time to Begin Your Financial Journey, Regardless of Circumstances
Don’t wait for something bad to happen before changing your financial behavior. The power of time is your greatest ally, especially when considering factors such as compounding interest. Postponing the implementation of your financial plan could cost you a significant amount of money in the long term.
Planning Ahead Matters
If you don’t plan for the future now, you can’t effectively monitor and develop productive financial behaviors. A well-constructed plan should be tailored to your personal values and goals, and should outline a strategy with clear steps for achieving those goals.
Your Financial Journey is a Marathon — Not a Sprint
If you start now and stick with it, you’ll reap great rewards over time. Endurance, patience and discipline will guide you on your way. And even the most experienced investors sometimes need a mentor to help them make wise financial decisions.
First Command knows these time-tested principles can help you be financially secure and feel confident in your future. Yet your life isn’t stagnate. Although you follow these principles, your financial plan must continue to change as you do. Meet regularly with your First Command Financial Advisor to develop evolving strategies that change as your circumstances change, enabling you to continue to confidently meet your financial goals — no matter the circumstance.
First Command Financial Services, Inc.