Focus on what you can control - Improving financial well-being.
Personal financial management becomes tough when we become panic every now and then with the changing factors, for example, politics and inflation.
There will always be a lot that we can never control like the decreased rate of our currency. But that doesn't mean it must impact negatively on our personal finance. It's easy to blame external factors for our failure or poor status. But in the end, we will be the stakeholder of the consequences. So it's better to work on the other side to make it better.
What I came to realize from my own life experience is, only focusing on what we can control can solve this problem and improve our personal finance.
As I say, "we can't control the market but we can choose how to invest, our spending habits, and saving practices.
My own creation using Canva
I can give you a real-life example.
I used to have three fixed-term deposits in government own banks. The interest rate used to be 12% a few years ago. The government decided to decrease that to as low as 7%, after tax almost 6.5%. It's almost half of the profit before.
It was not in my hand, I couldn't control this situation nor I knew this could happen. But what I choose to do afterward was on my hand.
I withdrew the money and invest in other places and got a fairly well return.
This is just an example. There will be hundred more factors that we can't control like tax rates, inflation, global economic impact, etc.
That's why it's better to start working on our own financial management that we can control.
I have seen this advice in different places like we need to focus on our expenditure habits to improve financial management. That's a fact. But I would like to add, start with investing in your education and skill. This will be a lifelong investment and will take you a long way.
Another wise equation I can provide.
Saving = Financial flexibility.
We do control our asset allocation and investment. So it's in our hands how we plan to save a little bit or as much as we can so we can reinvest and have some financial freedom.
There are so many small things we can control in our life. maybe they don't sound very glorious like shifting one coffee brand to another that is not on the top list. But that's okay, you know. As long as you are in the survival game, it's all okay.
Build the mindset that you need to save up, you need to choose what you can control like your education plan and your investment sectors. Recheck with the market whether or not you are going well. In this inflation era, if we don't focus on these things, we will be in huge panic mode for the rest of our life. Because things will be much more out of control in the coming days.
Remember, you may not control the cost but you can control the expense.
Thanks for visiting my blog.