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Focus on wealth creation is the skill to prioritize. There are many habits we acquire from the repeated financial decisions we make.Our inconsistency in making the right decision delays us from reaching our financial goals. There are 3 different ways a majority of people lose their financial focus that the wealthy often overcome:
At some point in our financial journey, we reach an epiphany. It could be realizing how that side hustle idea you had could improve your cash flow. Perhaps you attended a class or seminar and finally decided to start saving a certain amount monthly. One financial mistake led you to distress and you decided that your new year resolution is to get out of debt and live debt-free. Or maybe you’ve witnessed your friend gain returns on investments they made.
Making the right financial decision but not taking action skews your finances. It sometimes becomes demotivating knowing that you would’ve made returns if you only invested in something. Or you may regret a financial emergency thinking that if you had only started saving months before, the situation would be different. In fact, not taking action can lead to making financial decisions out of desperation instead of conscious consideration. This is why people fall for get-rich-quick schemes, jump onto trending investment options or end up in debt for the sake of starting yet another thing.
Taking too many actions and many decisions is uncoordinated. What you need to do is to write down your vision. Break down your vision into SMART (Simple, Measurable, Achievable, Relevant and Time-bound) financial goals. Each goal will make you more intentional in prioritizing it in daily financial decisions. In wealth creation, what you focus on is what you get.
Procrastination in making the right financial decision sometimes is a reflection of what’s on our minds. Perhaps you could be unsettled about investing all your money and losing it. Do you often avoid risk? Try addressing that by having an emergency fund. The idea is to take some steps to achieve the goal that leads to the vision. No matter what your goal is, the best way is to start. Set your mind on what you need to achieve.
When it comes to investing, compounding interest is the magic people see. The earlier and more intentional you are in investing in a particular asset class, the more gains you earn from its appreciation. Strategize on how that one thing you’ve always wanted to invest in can make you money with each deposit earning interest.
To businesses, focusing on certain aspects of improving your business can lead to your business growing. Perhaps your focus could be on advertising more, branding better or even digitizing your business. This leads to an increase in profits.
The beauty of focusing on improving cash flow lies in how little changes add up to great financial changes. For example, if you set out to start a business and take a loan. Focusing on clearing that loan will make you manage your money better. This way, your business is a success and your debt is paid.
A sober mind makes sober financial decisions. Choosing what’s best for your personal finance should be less about what you want now and more about what you want your future to look like.
Stay focused. Take action. Keep moving forward. Follow us on Facebook, Instagram and Twitter to get regular tips on how to focus on your financial fitness journey.
Financially Fit
Riverside Drive, Nairobi – Kenya.
