In a high life rate like the current one, we tend to focus on urgent decisions but not always on what is important. Changing the focus can be a good idea both for our finances and for the whole of our lives.
It is normal to want urgent tasks to be the first to be removed from our list of mental objectives, especially in the short term. However, these urgent tasks are not always the most important in our lives and make us, precisely, forget important issues such as:
- The improvement of the family environment and the attention to the family
- The improvement of our skills and knowledge
- Long-term professional success
- Health Care
Generally, these issues that really are a priority, escape us while we invest a lot of time in tasks of low importance, although they may seem relevant to us.
This is perfectly applicable to taking care of your personal finances . When you spend a lot of time on small decisions, or urgent but banal details, you lose the real perspective of what you want or need for your money, for example, how to save every month . These are some ideas to improve this scenario, and being able to focus better is what is important.
Program your goals and decide to control your finances the way forward
Controlling and dominating your personal finances in the long term is a complex task. To be able to do it, you need to start from a good base, and this base is an initial planning of what you are looking for with your money that can share objectives, for example, saving to buy a house and saving for retirement .
Each person is different in these objectives. There will be those who, correctly, prefer from the beginning to guide the objective to form a good portfolio of savings . There will be those who prefer to balance spending and, at certain times of life, allocate more of the income to consumption than to saving, investing positions in a given time. It’s the same, deep down the important thing is that you set goals and a way to go with your money.
Choose the savings products well; retirement plans , savings insurance, paid accounts, all those tools that will help you shape your savings portfolio over time. At the same time, choose well the model of relationship between what you enter and what you spend, create a good budget and follow the path you decide to mark yourself.
Distinguish the important from the shocking
In the same way that happens in other aspects of life, sometimes we do not distinguish the important from the shocking . The important thing is what happens and that, immediately, surprises us for good or for bad, but that, however, in the long term does not have to be relevant.
This is especially important for those who spend part of their money investing . Sometimes, the movements of the markets offer shocking moments that, however, in the long run, do not have a determining importance in our pocket.
Control anxiety for your money
The fear of losing money is logical, reasonable, and also, in its proper measure, healthy. This fear will make us be alert to the evolution of the products or investments that we have chosen.
However, from the fear of panic there is only one step, and that step can place you in the depth of the investor; Panicking is probably one of the worst things that can happen to any investor and lead to the ruin and bankruptcy of personal finances .
This is a clear example of focusing on what is important and not on what is urgent. Imagine that you participate in an investment in which, suddenly, the assets begin to lose value. To panic is to respond to the urgent, that is; Today you have lost money and you respond immediately leaving the investment. However, the variable income works by cycles and although, effectively, you can lose money, the panic is never a good adviser since it will make you to make decisions by anxiety and not reasoned.
If you had your programmed goals, you would know where the acceptable limit of losses is for you, and, you would keep quiet waiting for the evolution of the assets, knowing at all times when to leave if you have to do so.
But, eye. In the same way that panic is a bad friend of your finances, overconfidence, euphoria or foreboding, are also immediate decisions, usually not very thought out and based on anxiety and not on reasoning.