May 27, 2024

Tricia Oak

Business & Finance Excellency

How to Get Your Finances in Order

This article was translated from our Spanish edition using AI technologies. Errors may exist due to this process.

Opinions expressed by Entrepreneur contributors are their own.

Throughout life there are ups and downs of all kinds, in health, in personal relationships, in work, and the financial thing cannot be the exception, all areas of our life interact, enhance or diminish between them, and to be in balance you have to pay attention to everything.

In the case of financial ups and downs, we must be prepared for all kinds of situations, emergencies, layoffs, unexpected expenses, investment or purchase opportunities and that is why now we will see some of the actions that we must take to have a good resilience financial

How are you feeling financially today?

If you are doing well and have excess income, then it is time to think about expansion, creating new income and saving. But, if you are anxious, afraid or in financial chaos, then it is time for order, planning, creativity, increasing useful information and an emergency financial plan. Stop the financial panic that exists in your mind!

Resilience refers to the ability to overcome critical moments and adapt after experiencing a difficult situation, and since the title of the article is “financial resilience” we will focus on how to get out of your financial chaos.

Tip: Understand your economic environment, the economy of your city, your country, your continent and yes, also your family environment and social circle, remember that out of empathy we end up replicating our social circle.

Identify and get rid of harmful financial behavior patterns

  • Family financial patterns: Many of the financial conceptions and vices that we carry come from the family, so it is important to analyze well what positive or negative habits we are replicating and abandon or increase them as appropriate.
  • Guilt: For thinking financially different from the rest of the people you love, when a person changes for the better it generates changes in those around him, being different will positively affect your environment, you will not stop belonging to the group, you will improve it.
  • Comparison: It is inevitable to compare ourselves with others, and to a certain extent healthy when checking the competition of a business, or establishing role models or tutors that we admire when pursuing goals that others have already achieved, however, you should know that there are so many paths as humans, period, learn to live your own life.
  • Wrong expectation: Thinking in advance that the path will be easy, fast, effortless and successful the first time, since this rarely happens, and when it occurs it is usually wasted as it has not been forged properly, so be prepared because this will help you. it will cost.
  • The sense of scarcity: The continuous scarcity of a certain resource reduces our cognitive capacity, which prevents us from seeing options even when we have them in front of us and limits our possibilities beforehand, so continuously, at least a couple of times a year, you should do a self-analysis to see if you are not acting as if you lack a resource that you now have.

Tip : Understand economic cycles (Boom-Recession-Depression-Recovery), you can do it in the article “ Crisis, recession or stagnation: What is happening and what to do?

Strengthen your financial mindset

  • The power of bankruptcy: Being financially zero does not mean being scarce, it only means that you do not have the money, but you do have many other resources such as time, intelligence, creativity, social circle, experience and a long etcetera, make use of them.
  • Use the statistics to your advantage: No matter how much aim you have, it is a mistake to bet everything on a single dart, shoot as many as you can and understand that there are already winning ideas, take one of them, innovate on it and get the most out of it.
  • Evaluate your social circle : Expand it, challenge yourself to live with people who surpass you in one or several areas, that will also make you expand, surround yourself with creative and positive people.
  • Align your lifestyle with your financial philosophy : Is your way of generating income aligned with your philosophy of life? If not, you will always be dissatisfied with your life.

Create new sources of income by capitalizing on your gifts and talents

List 10 activities or hobbies that you would love to carry out and think about how you could generate income from it, also think about what skills you must develop to carry them out.

  • Build new habits
  • Evaluate and select mentors who have the lifestyle that you would like plus their values align with yours.

Tip : Errors when creating new sources of income.

  • Believe that we need a lot of money to start
  • Believe that we are not ready to start.

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