Financial Consciousness

We live in a time where consuming and spending has become a part of our lives. We consume the internet, clothes, furniture, mobiles and other items. Whether we need or don’t need an item we buy and consume.

This habit if we are not aware enough can take us to the rabbit hole. When you hear people say: Life is just too expensive. I can’t get married. Or: I barely survive to fuel my car until I receive my salary next month. These statements come around if we are not financially aware.

Someone might wonder: How can I be financially aware? An important understanding here to see what beleifs and thoughts we have about money and spending. The common beleifs I notice and experience are: Money is not enough. If I don’t spend, I wouldn’t fit in. Money is hard to get and easy to spend. Money is meant to spend only.

You could also think of other beliefs and thoughts you might have about money and your spending habits.

Second is to keep track of your spending habit. For instance, at the end of every month, get a printed bank statement of your bank account and highlight your spendings. While highlighting your transactions, see which transactions were necessery and which weren’t.

By tracking your expenses, you would know where your money goes. Many people get scared or anxious to check their account statement because they don’t want to be shocked or disappointed.

Third is to have a specific plan for your spending at the start of every month. For example, when you receive your monthly salary, you write down in your notebook your plan for your spending in that particular month.

Normally the plan you create for your spending needs to include your basic expenses and your goals too. Basic expenses are for bank mortgages, utilities (electiricity, water, internet, phone), home services, home grocery and petrol. With regards to your goals, it depends what goals you have. If you have a goal to go on a family vacation in summer holiday, you include that in your monthly financial plan. If you have a goal to pay off your personal loan with the bank early, you include that in your plan too. Such plans direct you financially and you become empowered and strong financially.

Finally, its tricky to work on our financial awareness. We have got many distractions in life. Kids ask for entertainment. Things happen suddenly without our expectations. The social media and market advertisement mostly encourage us to consume and purchase items. But remember this. Living a modest life is precious. It is not the things we purchase that fill our emptiness. Purchasing brings only a temporary good feeling but then we go back to the cycle again and it won’t stop unless we realize it and do something about it.