According to Steven Covey's book "7 Habits of Highly Effective People" , which has been purchased by more than 15 million people since it was published in 1989, successful and effective people control their finances better and in a more frugal manner than those who are financially vulnerable.
So, what are the habits of frugal effective people? They are not miserly, they do not give up the luxuries that make them happy. They understand the difference between possessions and net worth, remember that true wealth is measured in assets. To be a successful, effective and financially secure person, understanding and perhaps adopting the habits of a frugal person may assist.
Be Proactive – Take responsibility for your own life. Understand you are in control of your life and the direction it takes daily. Make your financial commitment to yourself and let others know your goals. Listen to yourself and reason with yourself.
Have Realistic Goals – Envisage your end results despite obstacles. Visualise effectively what you want to achieve and decide how you will get there. Remember things are created twice, once mentally and then physically.
Prioritise – Keep your goals as your first priority. Ask yourself what are the things most valuable and worthy to you and prioritise around these. Learn to say no to be in more control of your budget and in achieving your financial goals.
Be Positive – Have a win-win mindset. This will allow you to see mutual benefits from all your interactions.
Communicate – You need to be able to listen to and understand the goals and behaviours of other people in your life as well as having them understand your goals.
Synergise – Surround yourself with people who are where you want to be, share ideas, work co-operatively to be creative and enable more effective results than you could achieve individually.
Keep Fit – physically and emotionally – renew yourself by being healthy, exercising the body and the mind, relaxing and having fun. It does not mean having to go to expensive spas or restaurants. Riding your bike, walking, cooking yourself and relaxing in a tub at home can re-energise you.
Newcastle Financial Advisors Leenane Templeton take a holistic view of your life and finances and we are passionate about helping you to grow, protect and maintain your wealth.