Personal finance is sometimes not a one size fits all kind of thing. Different people have their own unique way of handling their finances hence do not necessarily have to make the same changes others have to make in order to put their finances in order.
According to Federal Reserve Bank of Dallas e-book called Building Wealth, A Beginners Guide To Securing Your Financial Future, people generally fall into the following groups.
Planners control their financial affairs and budget to save. Strugglers have trouble keeping their heads above rough financial waters and find it difficult to budget to save.
Deniers refuse to see that they’re in financial trouble and so they don’t see a need to budget to save. Impulsives seek immediate gratification.
They spend today and let tomorrow take care of itself. They couldn’t care less about budgeting to save.
In order to make the best out of your finances for wealth creation, the planner is best suited.
While some people will find it hard to accept that their financial management style is similar to that of impulsives or deniers, accepting your financial management style is the first step to changing to the style that you deem best for your financial health in future.
A planner will find it easy to tie the loose strings in their budgets and save as much money as they can from their income but a struggler will spend his time worrying about his financial shortage, a denier will seek to convince themselves that all is fine by surrounding themselves with material objects that money can buy while impulsives will buy and buy and buy and until they drop.
By realizing your personal financial style, planners will find where they can tighten their budgets to get their desired results while strugglers will lean stand back and re-evaluate their financial life without worrying about the current crisis. Impulsives will learn that they have to reign in their impulses and look at the future while deniers will see the reason to understand that denying a problem will not take it away.
By choosing to budget and save, you will understand where your money goes, ensure you don’t spend more than you make and find uses for your money that will increase your wealth.
That way you can go sleep knowing that if an emergency happened tomorrow you would not have to borrow against your next salary nor would you be completely helpless in case you suddenly and unexpectedly lost your source of income.