ArtsAutosBooksBusinessEducationEntertainmentFamilyFashionFoodGamesGenderHealthHolidaysHomeHubPagesPersonal FinancePetsPoliticsReligionSportsTechnologyTravel

4 Methods to Master Personal Finances - 6 Secrets of Financial Success for Beginners

Updated on July 1, 2011

Secrets of Financial Success

See results

In previous articles, we learned about how to manage our personal finances, then we learned about how to improve them with savings, investment, future financial planning, setting goals and achieving them, but today I am going to share with you some ultimate methods to self master your personal finances to attain nonstop personal financial growth and development in your life. So below are 4 methods to kick start your personal finances and master them in a unique way followed by 6 secrets of financial success for beginners:

Method 1: Understanding the difference between financial success and failure

The definition of financial failure comes down to this – a few mistakes made in financial decisions everyday. On the other hand, the definition of financial success defines itself in – a few financial disciplines practiced everyday without fail, so the difference between financial success and failure is not having the capacity or absence of it, but, success and failure both are choices to make, choose yours, live consciously, attain financial freedom.

Method 2: Start loving your flowers (savings) - kill your weeds (debt)

Your financial garden consists of both flowers and weeds, i.e., savings and investments and debt. For nourishing your garden and maintaining your finances to their optimum level, you have to do both - love and hate, so I recommend you to love your flowers that is to engage in more savings, investments, future planning, etc. and hate your weeds that is start planning to pay off credit card debt that accumulated due to extravagant purchases, avoiding taking personal loan again and again for buying luxury items to show off your status in the society or among your friends who have more money than yourself.

Love your flowers kill your weeds
Love your flowers kill your weeds | Source

But, only love and hate will not do. You have to step ahead. You have to go beyond love and hate. And that is to invest more time in your flowers (savings) and kill your weeds, i.e., pay off high interest debt first and then try to wipe it off completely from your financial life.

Question can be asked - Is it really necessary to kill the weeds, i.e., debt? Yes, because otherwise your weeds (debt) will kill your flowers (savings and investment) or at first place your debt will never let your savings and investment to come in existence. Until you don't love to hate your weeds and pay off debt, you can only hate to love your flowers, i.e. no investments, no savings, no retirement planning, no funds for kid’s education, typically a life of biggest financial loser.

Method 3: Ask for help. Don’t feel shy of discussing your personal finances in front of others

By saying, “ask for help”, I don’t mean that you have to ask for help financially every time you are in financial burden but I mean something different. According to me, asking for help is a skill. It is a master skill because if you don't ask what you need, the other person will not realize what you want. Tell your trustful friends about your financial problems and situation, might be possible that your friend or relative had gone through this problem in his past life and can help guide you take the best decision. So ask freely. Also, it is impossible to learn everything only from one person. From each person, we can learn something new. And if these learning will help us to grow financially and get better in our financial life, then why won't we ask for help? All through these years, I have realized that asking for help doesn't make you weak rather it will help you to remain strong. Do ask and do help. Yes, together, we can surely make our financial life much better than we have thought of alone.

How is your financial life? Growing and decaying
How is your financial life? Growing and decaying | Source

Method 4: Growing or Decaying Financially

Today, I invite you to consider one question which has the power to revolutionize your financial life. Ask yourself - At this very moment, am I growing or decaying financially? This question actually gives you the clarity to be aware of what you are doing right now and translates your inactivity to action. Life is all about choices. You can choose to grow financially or you can shrink. If you are not growing at this present moment, i.e., not optimizing your personal finances or not engaging in finding different streams of income to pay off debt fast or plan for retirement, then you are fueling your mediocrity. So, choose to be great instead of decaying financially. Choose your best life. You deserve it.  

6 Secrets of Financial Success for Beginners

  1. Keep your personal financial life as simple as it can be. Don't make it complicated, i.e., simplify and plan your budget, savings, and investments by making a simple chart on your notebook.
  2. Write down every achieved and unachieved goal on your notebook.
  3. Improve your personal finances on a daily basis. Don’t let them unattended for a single day.
  4. Try to optimize and maximize your personal finances by making wise financial decisions.
  5. Know where you stand financially, and give some time to remember about your past achievements which will give you more power, courage, motivation, and confidence to improve your future financial life.
  6. No matter how successful you are financially, always stay frugal, humble, and economical.

So above were 4 methods to self master personal finances and 6 secrets of financial success for beginners. I hope I was able to properly guide you to help improve your personal finances with the above methods and secrets experienced in my own life. Now I invite you all to share your own financial secrets and methods so that others can derive benefit from them.

How to Organize Personal Finances : How to Make a Personal Financial Budget



    0 of 8192 characters used
    Post Comment

    • billywilliams51 profile image

      billywilliams51 7 years ago from London

      A very detailed and comprehensive article - I foun it very informative and insightful. Billy

    • soni2006 profile image

      Rajinder Soni 7 years ago from New Delhi, India

      Hello Misty, as this hub is a part of HubMob Weekly we are required to display rss feed of the same. I have trimmed down those links to 2 from 8 so that the unwanted and unnecessary parts of the feed are not displayed. Of course that hub has been inappropriately categorized by some other hubber and that's creating a nuisance with the whole rss feed. By the way, thank you so much for your feedback and letting me improve the overall appearance and links of this hub.

    • Misty May profile image

      Misty May 7 years ago

      This is a really great Hub but I just got to ask whats with the links like inexpensive hotels in paris? What does that have to do with personal finances?