Success and failure are a fine line, and money in that regard is no different.
For some, success as it relates to money and saving it could be something as simple as how much you make, having a handsome income and, for the most part, keeping your expense to a minimum.
Other will argue that success is how much you have in your bank account and the ability to budget and save, regardless of your income.
And what about other aspects of money such as a financial plan or retirement fund?
As you can see, money and success have a lot of different avenues. Failure also isn’t far off if any one of those are lagging.
So how exactly do you know if you’re financially successful and at least have all the eggs in the right basket so you can save money and flourish, versus the alternative and that’s no money saved and living from one paycheck to another.
The two most important aspects of your finances and saving money: financial plan and budgeting. The planning and budgeting run hand in hand, and the real driver behind both is having goals and making sure they’re spelled out in black and white. Far too often, individuals have these great intentions and want to have more money in the bank and a better retirement set up but it’s only idle chatter and no pen was ever put to paper, and thus nothing happens.
And a lot of that goes back to an earlier point about having a nice sized income but yet nothing to show for it. They assume that having a lot of income means you don’t have to think about having a financial plan or budget and that you have a “good idea” that you’re out ahead of the game.
Chances are, you’re not.
The budgeting piece speaks for itself. You can’t spend what you don’t have and that’s when you get into credit card issues. Budgeting means you know what you have to (not want or need) pay for and then whatever is leftover can be dealt into your savings account and make sure you have some money for entertainment expenses or to simply have fun.
If you’re debt free and only have a few thousand dollars in your savings account, does that make you any less worse off than someone with $20,000 in debt with $10,000 in their savings account? The difference between success and failure truly is in the eye of the person, but if you’re budgeting to the point where you can put money aside and your credit is managed well and you have a 70 to 30 split in favor of income versus