There is no need to spend this St. Patrick’s Day holiday in search of a pot of gold. You don’t need money luck to build wealth. Just follow these 5 simple steps to create your own financial luck.
Pay Attention to Your Money
The most financially successful people know that to create their own money luck, it starts with paying attention to what is happening with their money. Do you track your income and expenses? Have you built a savings and investing plan for the next 12 months? This isn’t just about seeing what you are doing currently, but about creating intention for what you want to happen in the future.
Build Your Spending Plan
You have heard of budgeting… but have you ever considered planning for how to spend your money? You are going to spend money. It is a part of everyday life. So why not create a plan to ensure your spending allows you to meet all your needs and prioritize funds in the areas that are most important to creating your own money luck? Your spending plan will have various categories such as housing, food, and transportation. A comprehensive spending plan will also have an allocation each month for savings/investing. By building your financial future into your spending plan, you build your own pot of gold!
Create Your Money Luck with Action
The first two steps focused on creating plans for your financial future. A plan is only as good as how it is executed. This means that the best laid plan requires action. What action steps do you need to take to implement your investing and spending plans? Will successful execution of your plans require that you track your financial activity more frequently than you do currently? Will it require that you change your daily habits? Do you want to create additional income so that you will no need to cut back in some spending categories? By taking action, you are in control if your money luck.
Reduce Your Bad Debt
While some financial experts will say that all debt is bad, I believe that there is good debt and there is bad debt. Debt used to generate cash flow and improve your financial position is good debt. Debt that does nothing but take from you financially is bad debt. If you are not able to make major purchases without using debt, you can be smart about how far into debt you are willing to go. You also have the ability to look at your financial position before signing on the bottom line to determine if you have the financial means to repay the new debt that you are taking on. In addition, you can ensure you get the most favorable terms by maintaining a positive credit rating. By maintaining good credit, you won’t need money luck when it comes to financing decisions.
Eliminate Negative Financial Influences
We often hear stories of people who win the lottery or gain quick wealth through celebrity and end up broke. Although it seems like money luck- this highlights that what you do with your money is far more important than how much you make. What you do with your money is influenced by who you spend time with and their money attitudes. If your closest circle of friends goes out all the time, paying little attention to how much they are spending or relying on credit cards to maintain a lifestyle, they may not understand your financial goals and priorities. If you find this to be the case with your immediate circle, it is time to make important decisions about who you want to influence your financial future and your daily decision making. Can you maintain those relationships and still stay true to your own goals? This is a question you will need to answer for yourself by sharing your goals and priorities.
The Take Away
We all have the ability to create our own money luck and to build our own pot of gold. While the steps are not complicated… they are also not always easy. Create your own financial plan by starting with small goals, achieving them and then moving to bigger goals. Surround yourself with people that will support your goals and you will have all the money luck you will ever need!