5 Skills Needed for Financial Success

5 Skills Needed for Financial Success

Managing your money is about more than numbers and math skills.  A budget is important but  you will need more than just a proficiency in keeping track of income and expenses.  Making smart money decisions incorporates other skills that, if someone does not have, can be learned over time.  Fastest way to proficiency is start now.  Here are 5 skills needed for financial success.

Delegation 

Know when and what to pass on to others for professional help and guidance.  You are not going to be good at everything and knowing what your weaknesses are and  how to delegate those tasks to others and /or programs to handle is an incredibly important skill for financial success.  Delegation can also mean automation for many record keeping and financial transactions.

Self-Discipline 

This is the glue that is going to hold everything together and give you the best shot at financial success. You can do all the preparation imaginable but if you do not follow through with the consistent activity, you have no shot at your goals.  They just become wishes at that point.  In day-to-day life giving in to easy outs or temptations has the immediate gratification in that moment but you pay the ultimate price long term.

Organization 

It is hard to become financially successful if you forget to pay a bill on time or lose important paperwork. Being unorganized will cost you time and money.  Penalties, fees, higher interest rates, etc., from missed or late payments takes money away from budget that could go to savings or investments.  Organization helps money work for you and not against you.  Even if you are not the most organized person, online tools or handing it over to a professional can save you from yourself.

Self-Awareness 

It is important to realize both your strengths as well as your weaknesses, what you can handle on your own and what you need help with. Convincing yourself you are good at everything is sure-fire way to fail.  You need to evaluate your spending habits to find where typical breakdowns and triggers for things like impulsive spending and poor financial decisions.  This will help you implement strategies to avoid these situations in the future.

Confidence 

You are not going to find your way to financial success without being sure of yourself, your choices and your ultimate plan of action. Many people fail here because they are not sure of themselves or their decisions about money which can  lead to poor risk/reward analysis or panic in times of extreme uncertainty.  Recklessness often means making decisions without fully calculating their ramifications. The best way to develop confidence when it comes to money management is through continuing education.