Patience and Persistence

In the previous articles of this series we have seen that financial success requires us to learn how to control our money. We have also discovered that the most important key to personal financial management is learning to use an effective resource allocation system.

We discussed adopting a correct mindset, getting together the essential information about our personal finances, organizing our expenditures into an effective spending plan and adopting a personal allocation system. Taken together they will give us the tools to physically control our expenditures.

While these things may be new to some of us, at least the concept of allocation, none of them are especially difficult. However, getting in control of our money does take time; this means we must be patient and persistent to succeed.

Now, in this final step, we will focus on putting it all together in a way that will last and produce the results we want.

Factors Required to Control Money

One of the Laws of Money is what I call the Law of Persistence and Patience. This is the law that says:

Success with money requires persistence and patience as much as it does knowledge and skill.

The real truth is that the skills needed to become successful with money are not hard to learn and put into action. Honestly, almost anyone who wants to do it can.

But unfortunately, it is equally true that persistence and patience, which are absolute necessities, are somewhat rare commodities. However, if you want to reach this important goal they must be developed.

To get a spending plan we can live with, for example, requires patient work for several months. We rarely know where our money is really going. So we need some time to track our spending and develop a spending plan and allocation system that fairly reflects our present personal use of money.

It doesn’t take a lot of time every month; it does take a little time each month for a while. Actually this is a good thing because it means we never need to get in a hurry and by taking our time we have a better chance to get it right.

Once all is in place there will be many benefits. Our credit card debts and personal loans will almost automatically eliminate themselves using this process. The peace of mind that comes from having all our bills paid on time is remarkable.

But this, too, requires persistence and patience because progress at first seems slow. Later, however, it will really accelerate making it much easier to stay committed.

A Mindset for Financial Management

So, can we do anything that will effectively help us keep on track for the long haul? Fortunately, the answer is, “Yes.” There are several things that can really help.

First, mentally accept the fact that a person can only do a little at a time and that at first the progress may be slow. We have already discussed this, but we need to personally and purposefully adopt a mind set that this is not only true, but OK.

Here is another way this is good. It means that we don’t need to seriously disrupt our lives to find time to work on it. Very little time is actually required to maintain control, especially after the system is in place.

Second, Set aside a time at the first of each month to review, evaluate, and adjust our program.

• At this time we want to compute our new net worth to see what progress we have made during the previous month.

• We also want to determine if our spending plan and allocation funds are all in order and working well. Perhaps some areas need increases or some permit decreases.

• This is also a good time to think about ways to increase our income or reduce expenses. Remember, this is our monthly financial planning session.

• Sometimes this session needs to involve more than one person. If you are married, for example, there are many elements that involve both spouses.

• If you have children there are some issues that may involve the whole family. Let everyone have their say and resolve any disagreements.

Finally, just bite off one small step. Then another and another.

First, and always, focus on getting your spending plan and allocation systems completely in harmony with what you are actually doing. Remember that this is at the heart of all my recommendations in this plan.

When you know you are not trying to “budget,” in the sense of limiting yourself from doing all the enjoyable things you are doing now, it is much easier to get the system working. (Of course if you are over spending in some areas, some reductions will be required for ultimate financial success.)

Use Control to Redirect Spending

Once you have achieved control over your money and firmly established your personal financial management program, start looking for small ways to make improvements, ways that you may even enjoy.

Remember, once this process is in place, every time you save a little somewhere or increase income a little somewhere, you will actually have the money available, just sitting there waiting for you to use as you wish.

Many people never experience the joy, fun if you will, of being able to buy something they want without any feeling of guilt or remorse. But you will when you have all the money you need to pay all your obligations and plenty left to buy something you want with extra cash you have set aside for just such a use. I can tell you it feels good.

When you receive a raise or pay off a debt, the cash made available can be designated for any use you want. You will not be tempted to spend any money freed up because it will not be deposited into your spending checkbook or other flexible account.

Any money freed up from any source will remain in your reserve or savings account until some purposeful decision to assign its use because your personal financial management system now puts you in control of your money.

If you think you are spending too much in some area or you just choose to reduce spending there in order to have more money for something else, do a test run for a month or two. If it works, make it permanent. If it doesn’t, go back to the original amount for that account and try taking it from somewhere else.

In other sections of this site you will find recommendations for setting priorities for spending. You can follow those specific ideas for things like getting out of debt. You can do whatever you choose because you are now in control of your money.

On Your Way to Complete Success

When you have taken the time to actually do what I have proposed in these articles, you will have achieved something only a small minority of people ever do. Congratulations.

Once you have gotten in control of your money, you are well on your way to financial success. You can use your financial management system to control your money and achieve all your financial goals.

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