The Key to Financial Success

by Ron Haynes

Note: This article was included in The Carnival of Personal Finance #145 – Online Broker Tips Edition at Stock Trading To go.

Who do you know that is a financial success? Everyone knows or has read about someone who has had his or her share of financial successes. What made them different? What drove them to succeed? What financial secrets did they have that you don’t? What special key did they have to unlock the door to financial success?

There are no secrets save ONE. Financial success can come to anyone who master’s this one key. If you can develop this key area in your life, not only will you have financial success, but you will enjoy success in other areas as well. Okay, what is the key to financial success?

Self Control

Before you click the Stumble button or the “X” in the top right hand corner, think about this: only one character trait stands between you and the financial success you . Only one. If you can master just a little bit of this one trait, you can make a real difference in your own life. You don’t have to become a monk, or some hermit living in the mountains to have self control. All you really need is to develop a financial goal and an idea of how to get there. Add in your small amount of self control and you’ll be on your way.

How do you develop financial self control? Here are —- steps to use to help you develop self control and start achieving the financial success you desire.

1. Make it automatic. Put your savings on auto pilot by having it automatically deducted before you even have the chance to spend that money. If your employer offers automatic 401k deductions. Sign up today. If your bank allows you to automatically transfer money into a savings or brokerage account, set it up today. Put your bills on auto pilot as well. By putting your money where it needs to go every pay period, you’ll avoid the temptation to spend what appears to be discretionary income but actually isn’t.

2. Identify and deal with the emotions that frequently cause you to lose financial self control. Those emotions could be anger, fear, guilt, boredom, jealousy, impatience, or dissatisfaction. Do you remember having very little as a child? Do you buy something nice for yourself when you feel stressed? Once you learn to deal with these emotions in a mature manner, you can begin to control them, but first you have to identify those negative emotions.

3. What patterns of your life cause you to lose your financial self control. Do you frequently overspend at Christmas? Do you always have an over the top cookout on Independence Day? Do you feel the need to buy a gift every time you return from a business trip? Alter your behavior so that you’re able to overcome these patterns. Start a Christmas Club at your bank, budget all year for that cookout or change it to a potluck, write a meaningful letter to your loved ones on your next plane ride home. You will have to break the pattern.

4. Act. Take some action right now that runs counter to your lack of self control. Maybe it’s setting up and funding an online savings account. Maybe it’s going to an online broker and starting the process of opening a Roth IRA. Maybe it’s starting an investment club. Maybe it’s calling your credit card company or cable company and asking for a rate reduction. Maybe it’s starting a rule to wait 3 hours for every $10 something costs. If a new sweater costs $70, you have to wait 21 hours before you buy it. The way to develop self control is to start right now…right now and with every decision you make going forward.

5. Cherish and relish the feeling you get when you take action. Enjoy the feeling of accomplishment. Firmly implant it into your mind. The next time you’re tempted to procrastinate or fall off your self control wagon, take a moment and remember how good it felt to actually get something done using your own self control.

The richest people in history didn’t all get that way because it was handed to them. They achieved their great successes because they were able to muster self control. They controlled their spending. They controlled their emotions. They controlled their money. Don’t tell me you don’t have any self control…you made it to the end of this post. What you have to do now is exercise your self control and make it stronger.

Note: Steve with brip blap wrote a terrific article on Self Discipline that should be on EVERYONE’S reading list.

About the author

Ron Haynes has written 1001 articles on The Wisdom Journal.


The founder and editor of The Wisdom Journal in 2007, Ron has worked in banking, distribution, retail, and upper management for companies ranging in size from small startups to multi-billion dollar corporations. He graduated Suma Cum Laude from a top MBA program and currently is a Human Resources and Management consultant, helping companies know how employees will behave in varying situations and what motivates them to action, assisting firms in identifying top talent, and coaching managers and employees on how to better communicate and make the workplace MUCH more enjoyable. If you'd like help in these areas, contact Ron using the contact form at the top of this page or at 870-761-7881.


If you enjoyed what you just read and would like to get FREE email updates with the freshest articles from The Wisdom Journal delivered right to your inbox, subscribe today! It's ridiculously easy and you can unsubscribe at any time. Since your email address is never sold or abused, you can subscribe with confidence, PLUS you'll get free reports/guides/eBooks, subscriber only benefits, and other perks.


{ 4 comments }

Frugal Dad

As Dave Ramsey frequently says on his radio show, the thing standing between me and financial success is the guy I shave with in the mirror every morning! The “emotional shopping” was a problem for both me and my wife early in our marriage, but is something we have been able to get a grip on the last couple years.

Ron

@Frugal Dad:
I still struggle with it, pretty badly on some things.
Financial self control isn’t easily taught or learned, but boy is it necessary!

AJC @ 7million7years

Honestly … and, I think I have the ‘credentials’ to comment on this … this is Requirement # 3.

Requirement # 1: Have a REALLY BIG VISION for your life

Requirement # 2: Take MASSIVE ACTION to achieve your Vision

Requirement # 3: Have the Self-Control to ‘stay the course’ when the going gets tough

AJC.

MartinFortKnox

Another brilliant post. As you know by now after reading several of my comments I live by these sentiments.

“Whether you think you can, or you think you can’t, you’re right.”

You are the only one holding you back from achievement. If you exercise you’re ability to discipline yourself through self control, on a constant day after day, year after year basis, there is nothing you can’t achieve. I think the biggest problem with people is they don’t set themselves up to win. Realize, Rome wasn’t built in a day. Neither are your dreams. But with constant hard work, both are achievable. In addition to Self discipline, nurture patience and your true path will easily unfold.

My guide to Care For Bonsai Trees

Previous post:

Next post: