How to manage your money during the COVID-19 pandemic: Part 2
Personal finance success is really about much more than the dollars and cents. It’s about finding stability and meaning, and much more. ~Trent Hamm
Right now, a lot of people are wondering what history can teach us about the economic impact of the coronavirus pandemic, when the economy will recover from the coronavirus, and even how to rebuild the global economy in a way that’s fair for all. But, as we discussed last week, the best thing you can do as an individual is find frugal ways to become more self-sufficient.
If a successful life for you is oriented around low stress, meaningful work in a career that doesn’t reward flashiness and good friendships, then choosing success means choosing frugality and financial stability. ~ Trent Hamm
What happens when the novelty of frugality wears off and you get tired of the "sameness" of frugal living? This is when you have to apply routine and discipline to your finances.
Discipline leads to freedom. Going through the motions is a part of discipline, getting you through the times when you don’t feel like it. It adds up to the life you want. ~ Trent Hamm
It’s much easier to make the choice of success when you know why you’re making it. That’s why it helps to understand the role personal finance plays in your life by setting goals.
Think about what you want your life to be like. Then, ask yourself what you can do to maximize your chances of that life. The rest flows from there. ~ Trent Hamm
Of course, you can only cut back on your spending so much. Eventually, you have to think about productive ways to increase your income and spend your time. But even as your income goes up, you should keep your spending low.
If you want to have a rich, low stress life with incomparable freedom, the best way to do that is to have a life with a low burn rate, where the maintenance of your lifestyle costs as little as possible. ~ Trent Hamm
Mostly it’s about finding your financial ‘comfort zone’ and recalibrating your personal finances, regardless of your income level.
Don’t let your lifestyle inflate with your income growth. Instead, keep your lifestyle the way it is and use that money to build long term stability so you don’t have to painfully recalibrate when things don’t go the way you expect. ~ Trent Hamm
Improving your financial education and building diverse income streams isn’t just about having lots of money in the bank (although that definitely helps at a time like this). It’s about moving towards a life of financial success.
The thing all of us want out of financial success is a better life. That better life is almost always made up of a lot of elements, none of which directly have to do with an account balance. ~ Trent Hamm
It might seem overwhelming to imagine a life where you’re not financially dependent on your job. But it doesn’t have to be. As mentioned last week, it just starts with small steps that you can work on every day.
You don’t have to make radical changes to change your life. You just have to make changes that you can stick with and constantly apply. That’s the route to success with almost every goal. ~ Trent Hamm
More than that, it’s about understanding that managing your money isn’t just about your money; it changes so much more. You just have to make that choice for the better.
Whenever you want something better than what you currently have now, you have to change something. If you keep doing what you’re doing, you’re going to keep getting the results you’re getting, so if you want better results, you have to be doing better things. ~ Trent Hamm