How to Assume Responsibility for your own Financial Future

Sun, Sep 20, 2015

Financial Advice

While the great recession may have changed the prevailing financial outlook of society and encouraged more considered spending, a strong and debilitating blame culture remains. More specifically, many of us are still loath to accept responsibility for our own financial failings, as we instead blame government policies, stagnant earnings other external influences for our inability to save. Although it is fair to suggest that numerous economies are continuing to struggle as the cost of living rises exponentially earnings, there remains ample opportunity to manage your income and maximise its full potential.

 

How to assume Responsibility for your financial future in 3 Easy steps

You may require a significant shift in ethos if you are to are effectively manage your money and accrue savings, however, while also resisting the urge to place the blame for any financial shortcomings on others. Here are three steps towards achieving this: –

 

Avoid the lure of Blame Culture

In the recent UK election, 30 million votes were cast as the nation recorded its highest turnout in 18 years. This highlights an increased level of political engagement, which is largely considered to be positive for society.

It also has potentially negative connotations, however, as this creates greater awareness of political issues and subjective viewpoints. These can influence our outlook, especially in instances where specific policies are deemed to have a negative impact on our earning potential or ability to save. It is subsequently easy to blame these policies on our own financial issues, without realising that government bodies have a duty to represent the whole of the electorate rather than individuals and select demographic.

With this in mind, it is important to retain an objective viewpoint and avoid the temptation to blame financial shortcomings on specific policies. Instead, develop a clearer understanding of the policies that effect you and be prepared to take responsibility for any issues that you may face

 

Adapt to your Circumstances

With an open mind and progressive thought process, you can begin to identify the financial issues that are preventing you from saving or maximising your disposable income. Whether you are failing to optimise your earning potential or simply continue to spend outside of your means, you will need to develop an understanding of the problems in hand and the solutions to rectify them.

If you live frugally but struggling to earn a viable income, you may want to consider taking on additional hours or supplementary, part-time work where possible. Those of you with a marketable skill may instead prefer to work as a freelancer, as you use your experience and expertise to earn income outside of an existing, 9-5 job.

Alternatively, individuals with poor spending habits will need to focus on reducing their monthly expenditure, initially by budgeting their income and calculating all recurring bills. This will leave an estimated amount of disposable income, at which point you can look to reduce the cost of groceries, utility bills and the daily commute to ensure that this money goes further.

 

Execute your Plans with Diligence and Focus

There is an old Chinese proverb which suggests that once you are 90% down your chosen path, you are actually half way towards achieving your goals. This underlines the difficulty associated with effectively completing projects or executing plans, as while developing theoretical plans is one thing it is quite another to put these into practical use.

This is the final stage of the process, as you begin to put your carefully honed plans into action. Such a goal requires diligence and focus, while you must also be willing to commit to additional work or a more frugal lifestyle over a sustained period of time if you are to be successful. While doing so for a short period of time will have a positive impact on your finances and level of fiscal security, you must be willing to change your behaviour and outlook if you are to gradually accrue wealth and save consistently.

 

If you follow this process diligently and remain focused on your long-term goals, you can assume responsibility for your financial future and lay the foundations for a secure and ultimately successful life.

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