Aug 12 2016
Dealing with the intricacies of your finances can be time-consuming. But you should never consider yourself too busy to deal with it.
Breaking free of “busy”
Here’s the weird thing about “busy”: it becomes a mindset that is hard to break free from. The fact is that people who say they are too busy to do a particular thing usually aren’t actually that busy. Sure, they may have a pretty stacked schedule. But they could find time to deal with things like their finances quite easily.
The problem, and this may be something you’re dealing with, is that you keep convincing yourself that you’re “too busy”. Because that’s on your mind all the time, it keeps your mind busy and distracted. It stops you from slowing down and being able to concentrate on other problems. And the disturbing thing is that “busy” often means “busy with small tasks”, as opposed to big, life-changing ones.
The unavoidable fact is that you should be finding time to handle your finances.
Making things simpler
One of the best ways to do this is to simplify matters wherever you can. The fact is that there are several areas of your financial concerns that could be best left in someone else’s hands. That’s not to say you shouldn’t try to get a grip on the basics yourself, understand. But sometimes the micromanagement of some financial parts of your life don’t need your constant personal input. Not urgently, anyway.
Let’s take your retirement funds, for example. Retirement savings are an extremely passive financial area. That’s not to say that they don’t need tending to. But they usually handled better by professionals who deal with retirement funds all the time. It helps you simplify the entire process. Who you would work with would depend on what type of retirement savings plan you have. If you’re saving via superannuation, for example, you could work with a company like NSF Super to help simplify the process.
The consequences of not being vigilant about finances
Your finances are, as I implied earlier, one of the big things about your life. But many people treat financial handling as though it’s just a serious a small tasks that will only make your life a little bit easier.
It’s true that a lot of people out there may be able to just kind of float by without keeping a close eye on things. But being in the dark about your own finances really puts you in a precarious life position.
Questions you need to know the answer to
If you want to get off to a good start here, then you should know the answers to the following questions:
- How much of your monthly income goes straight into debts and other recurring payments?
- How much money, exactly, do I usually have ‘spare’ each month?
- How much interest am I earning on my current banking plan?
- If I were to lose my job tomorrow, how long could I hold out with the money I have?
- How much money do I have tied up in assets like my house or car?
Most people don’t know the answers to these questions. Finding the answers will see you go through bank statements thoroughly, as well as asking their bank some questions. It may sound dull, but once it’s done, you’re going to feel a lot more confident going forward.