Financial wisdom is not about how much money you have.
When we think of wisdom, most of us think of the wisdom that comes with age and life experience. Have you ever thought about what it means to have financial wisdom? From my perspective, financial wisdom comes from empowering, educating and engaging yourself around your money so that you can make good financial decisions.
Here are five steps to help you build financial wisdom:
- Create your vision. Creating a clear vision for your life is the first step in creating the life you desire. Describe your life in 5 to 10 years. What does it look like? What have you accomplished? Then translate that vision into some financial goals that you want to accomplish.
- Understand your (limiting) beliefs about money. What are your beliefs about money that stand in the way of you achieving your vision? Do you tell yourself you are not good with money? Do you allow others (your significant other, family member or advisor) to manage your finances without being engaged in the process? Do you believe that you are worthy of the financial success that you want? Understanding any limiting beliefs you may have helps you to overcome them to make healthy financial choices.
- Empower yourself. It is important to empower yourself through financial education so that you can make informed decisions. Your financial decisions should be made based on sound information, research or advice and not on emotions such as fear or anxiety. In addition, education gives you the confidence to handle your finances appropriately. A good way to get the education and information you need is by enrolling in financial classes or workshops or searching financial websites. If you need more guidance, consider hiring a financial professional.
- Have a prosperity mindset. Prosperity is more than how much money you have. It is also about having a successful and thriving life. Do you focus on the good in your life or are you focused on scarcity or what is lacking? A prosperity mindset allows you to be content regardless of what’s in your bank account.
- Practice gratitude. Be grateful for whatever you have and where you are financially. We sometimes get so focused on where we are headed that we forget to be thankful for what we have today. Here is a quick exercise-make a list of five things that you are most grateful for in your life. Now, imagine your life without these five things. Doesn’t that help to put things in perspective?
Financial wisdom is not about how much money you have. It is about your mindset and confidence to successfully managing your finances and prosperity.