We all know discipline. It is one thing Indians are very familiar with. We have been conditioned to it right from the Birth. Disciplined by our parent’s right from the childhood to do the right things like eat right, sleep at time, wake up in the morning Study.
Schools make you disciplined. I actually think that is their primary objective rather than actually education kids.
Government disciplines in following rules, paying taxes on time and penalize you if you don’t behave responsibly.
Your company disciplines to follow deadlines, come to office on time. It rates you on parameters and in the name of appraisals attaches monetary rewards to it.
But here is the strange thing, the one please discipline can significantly impact your wellbeing which is taught by anyone-
Financial Discipline.
Financial discipline means being able to control your money. It is about keeping your wallet closed and only loosen up when it is required and is aligned with your goals.
Here is a Quick Check to answer if you do have Financial Discipline.
- -Do you save and invest a fixed amount every month.
- -Do you have a control on impulse buying
- -Do you pay all your bills in full each month?
If the answer to these questions is ‘Yes’. Well congratulation you are making the grades in this lecture of Financial Discipline. You can probably skip the rest of this blog😊
But if your answers are No – then first you should realize that not able to control your money will impact you sooner or later and you need to learn the discipline to manage it well.
Here are 7 ways you can become Financially Disciplined
- Start with a plan
Planning is very important to achieve difficult tasks. Without a plan you would wander around and will not be disciplined. I mean, you should have an objective like saving 10 lakh rupees in 3 years for a down payment on your home you intend to purchase.
It is only then you would have a discipline to save and invest top achieve a objective you have set for yourself. You should have both short team and long term goal. Based on these goals you would benefit in two ways.
- You would become disciplined in you spending
- You would be able to spend guilt free knowing you are allocating enough for you short and long term goals
- Use Technology
When it comes to investing my number one rule is you should not be able to see the money lying in your savings account. It tempts you to set it free!
I setup automatic withdrawals from my saving accounts to be invested in SIP’s. It is based on the principles of ‘Pay yourself First’. Set up automation to transfer money in a separate account which is only used for guilt free spending.
You have apps now that will help you automatically pay your mobile, utilities bills and other expenses.
Check if you bank has facilities to automatically pay off your credit card bills few days before the due days.
Automations can help you sort out these parts which can impact on your financial wellbeing.
- Be accountable for your goals
Make sure that in the end it is you who are accountable for money management. Don’t piggy bank on your parents or spouse for money management. To achieve Finzaadi , you have to ensure you are in control of your money and not money which is controlling your life.
So ensure at the end of each month you track how you are moving towards your money goals and make course correction in case you deviate. In the end you should be in control.
- Partner with your partner
If you find the previous point difficult in the beginning. It is always good to partner up. A team can achieve most difficult task. You can partner with your spouse, friend, parents anyone with whom you can share your common goals.
Even though I am writing a blog about financial discipline I find myself needlessly spending sometimes. The trick I find especially effective is my wife’s stare when I float an idea of buying stuff I really don’t need.
- Read books, Blogs on money
Reading good books has had the greatest impact on my life. Be it creating good habits, money management or interpersonal communication. Reading good books on those topics helps you to know the subject and improve on them.
If you don’t know it, then how can you improve on it.
It is really important to understand money if you want financial discipline. Read financial management book, blogs, listen to podcast. It will teach you the importance of money management, importance of financial discipline and how it can set you on a course of financial freedom.
- Challenge yourself – Set money goals
If you find yourself not able to control your spending, try challenging yourself. Bring your ego in between and have it act as a defense against reckless spending. Try these –
- Don’t order anything from Swiggy, Zomatos for a month
- Don’t buy any new cloths for 90 days.
- Don’t buy a new phone unless you pay off your loans (personal or credit card)
Setting off a challenge keep you motivated to make painful sacrifices.
Creating of a habit is also a secondary benefit of challenging yourself.
- Change your environment – Avoid peer pressure
Humans are social animals. They behave as per the surrounding they are in. So if your friends spend 5000 rupees on weekend lunches or having their children take exotic Lego making sessions chances are even you would end spending on those activities.
The friend circle can significantly impact on your financial well being.
Having a budget helps in such cases. Keep a fixed budget that you can spend in compliance with your goals. And it is goes above you would have to start saying now.
According to research, living below you means reduces the stress level. It gives you a confidence that incase of any negative circumstances, you would be able to take care of yourself and your family.
Financial discipline is not about choking yourself in not spending – it is training yourself in mindful spending – which brings you joy both in short and long run.
