Leigh Arreane
The shortcut to financial success looks like this: study, work hard and save. It sounds simple but the truth is, it is completely appalling. No one told us overnight financial success happens.
Why? Because it simply does not exist. No shortcuts, no ifs and buts.
But there is an alternative. Although it requires a multitudinous amount of hard work and patience, the destination is a definite one – the road to becoming financial conscious.
Being financial savvy in today’s modern society is a trend no one would dare miss. With technology developing at a rapid pace, there is no doubt that our consciousness when it comes to financial-related decisions also broadens. New opportunities multiply as we are introduced to newer innovation and information.
As more Filipinos venture into financial opportunities such as business start-ups and real estate, more financial decisions must be thoroughly planned, taking into consideration the economy’s growth as well as personal financial building for capital. For Filipino millennials who are exposed to limitless information and resources, the road to opportunities is almost boundless. Being financially informed has become a salient concept rather than the social veneers we post on our timelines.
Whether you are a millennial who would take the road less traveled while designing a concrete financial plan for your future or a millennial trying to find your way out of a financial maze you are currently in, the following seven signs might reveal a clue to your financial consciousness:
1. You strictly follow a weekly or a daily budget
Budgets are created for a reason. One of these is to set a strict limit on the allowable amount a person should spend on needs and wants. Needs should always come first before wants, and that has always been the rule of thumb.
When you set limitations on how much you only allow yourself to spend on a daily basis, you are creating a disciplined pattern of your financial spending. You put an emphasis on the value of time and effort you have exerted to earn money, thus you consider every amount equally.
2. You set aside excess money at the end of each day
You are already following a strict budget yet when you have excess money left from your day’s budget, you do not find any excuse to spend it just because you have to. Instead, you set aside any excess money left from your wallet and add it up to your personal savings.
3. You window shop
When you find yourself inside a store you really love, you will have the urge to look at items displayed at every corner. However, if you flip the price tag to see how much the item costs, the next move you will do is put it back on the rack.
You remind yourself that buying for your wants is not a priority at this time and that investing in things that appreciate in value is more important than in depreciating ones.
4. You keep a minimalist lifestyle
Keeping a minimalist lifestyle doesn’t only entail buying less of what you want. The concept of becoming minimalist comes from the desire to keep things at par with our means to spend. You cannot impulsively spend on something not aligned with your capacity to spend just to show off that you can follow a new trend.
Being minimalist involves not only control but disciplined behavior. If you are inclined to buying things just to please anyone you meet across the street, then you have a long way to go before you can call yourself financially responsible. But that doesn’t mean the end of the road for you, it is just a detour. However, if you have already developed an attitude of not being overly excited when a new gadget hits worldwide stores or a new fashion trend making everybody want to hit the pre-order button, then you are already embracing the word contentment.
You maximize your belongings’ worth by not falling prey on items that depreciate in value rather, you allot your savings on investments that will make your money grow in the future.
5. You prioritize your ‘needs list’
Since you follow a strict budget, you are aware of the amount you can only spend. If you need to buy the things you need, you create a list and arrange them according to their significance. This way, you will be able to avoid spending over your allotted budget.
6. You don’t blindly follow the latest trends
Almost every month, a new product is launched to provide information on what is currently trending. Despite the popularity of these products, you do not find the desire to blindly spend on them. You know how the market works and how swift each trend changes so you would rather assign your money to something more significant for your future.
7. You are planning to invest for your future
Savings is your top priority right now. However, you are also aware that your savings may become affected by inflation. With these foresight in mind, you find a way to make your money work passively for you. You do this by researching about financial plans and investments to make your money grow. You are looking at investing in the stock market or getting insurance for security. Once you gain the confidence to accept the risk involving investments, you start seeing yourself venturing into the bolder financial side.
Talking about financial matters has been a trivial topic growing up. We were taught to focus solely on our studies and apply the formula of working and saving once we graduate from our degree programs. But as soon as we receive our first pay check, we realize that our path to success should not remain linear. That we can revise the formula into something that will work best for our financial plans.
Financial consciousness is the first step to attaining financial success. The rest is up to you.
