Business & Finance

Importance of Staying on Top of Your Finances

Importance of Staying on Top of Your Finances

Financial stability is one of the most important aspects of life that helps many people stay afloat and maintain their lifestyles. However, it is not easily attained or maintained because many people cannot manage their money correctly to avoid financial stress. Many people often spend more than they earn, fail to budget accurately, save, and spend their money on unnecessary or frivolous items. In the long run, these practices always do more harm than good and keep one below the surface of their finances. On the other side, some people avoid these practices and need great insights on how and why it is essential to stay on top of their finances.

Shalom Lamm is a business mogul who is the CEO of Operation Benjamin. In his many interviews and advice sessions, he often implores entrepreneurs, businesses, and people to create a goal and practice the art of budgeting to stay on top of one’s finances. People and businesses with a plan that they are working towards often give them a sense of direction to their finances. In addition, setting financial goals helps people to formulate a realistic budget that guides their spending. Adopting these two (2) fundamental practices by Lamm will create the path needed to stay on top of one’s finances.

People and businesses that create the right pathway for their money are automatically on top of their finances. One such is having ‘back up’ cash or emergency funds. Business and life are full of uncertainty. Therefore, people managing or staying on top of their finances can help them contribute to their emergency funds which often becomes beneficial in the future. This practice prevents persons from borrowing from lending institutions or using credit cards to take care of ‘rainy days.’ Stop living paycheck to paycheck or using all your business profits to clear debts is another benefit of staying on top of your finances. People who spend their money wisely will always have funds to catch their weekly, bi-weekly, or monthly income, putting them in a better position to deal with their expenses.

Another aspect of staying on top of your finances is paying debts on time or paying more than the minimum required monthly. According to Shalom, people who dedicate themselves to such things are likely to become successful. People with such dedication avoid attracting late fees to their loans. In addition, treating oneself to a yearly vacation or an item (s) is also another important reason to stay on top of your finances. Often, people who make small sacrifices reap significant gains. Therefore, when they focus on building the stability of their finances, they are more likely to enjoy the fruits of their labor in the future.

Shalom Lamm is aware that staying on top of your finances is essential though not easy to attain. However, these small steps should be taken to experience such joy. Staring with a plan then formulating a realistic budget is the first two (2) steps people like-wise businesses must take to gain those

rewards. Having an emergency fund, spending wisely, stop living paycheck to paycheck, paying more than the minimum on loans, and treating yourself to a vacation are short and long-term gains experienced once on top of your finances.