Why should you take charge of your finances today?

I am sure that scrimping and saving when the entire world is spending and consuming doesn’t seem like something that is by any means sane. Most people would be laden with a heavy sense of inertia even before they started saving the first dollar. But before you start procrastinating, here are a few reasons why taking charge of your finances today makes sense.

1. Changing of habits takes time

Having the commitment to stick to your budget on your small initially salary would be one of the hardest thing to do as a fresh graduate, period. Taking your post CPF paycheck and subdividing it must rank high on the kill joy checklist.

But over time you will find small financial hacks to make the impossible happen and your financial engine really roars to life when your other income streams begin growing and your investment income slowly replaces your salary as the main source of investment capital.

2. Learning to invest takes time

If the simplest concept in investing is to be buying low and selling high (yes, this includes passive index investments), how would you know what’s high and low if you don’t take the time to look?

From experience, most people really start learning after they have made their first trade. While inevitably people do make bad investment choices from time to time, don’t be caught out missing on a good deal. Time spent researching is never wasted, even if ultimately the decision is a no buy. Like any other hobby, investing takes both practice and time.

3.Getting your loved ones onboard takes time

If you think sticking to a budget is hard, try telling your loved ones to do the same. In fact, the most common reaction towards hearing that someone is on a budget wouldn’t be too different if he/she was on a “diet”.

I know that it is incredulous to some that in this modern day and age with credit readily available that budgeting still forms the bedrock of a financially free future. The typical reaction towards budgeting is “why, when life is already so hard, do I have to do it?”. That’s understandable considering that the majority of the world have accepted and (some even take pride in) exchanging their time for money.

“As two is better than one”, getting your loved ones on board is the single most important catalyst towards fast forwarding your journey towards financial independence.

4. Learning about yourself takes time

I like to think of financial independence as a journey towards self-discovery. Just like how you won’t know how much you can stretch yourself or what really matters to you in life, biting the bullet will give you an edge over your peers by forcing you out of your comfort zone to think differently and prioritize life differently. Most importantly financial independence means learning what your real purpose in life is and having the base to stretch for your dreams when the time comes.

So don’t wait to adopt a wealthy mindset and have good habits, start today!

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