It is definitely important to know what you earn and what you can do with it.
This is because the world is defined by money (sadly). Your work and the quality of your living and the products and sometimes valuable things such as ideas will give you money. In this regard, you can maintain a good standpoint of the earnings you make and the expenses you have to make.
Both are earning and spending money are connected. Don't take this the wrong way or think it as wise words, but the necessity of earning money has never become a passion in most people because we do it for a plain, old thing called 'necessity'. And when there is sufficient availability of things (which is impossible in this dystopian world), then earning money becomes a little less interesting too.
So, why would you care about earning money and learning your financial capacity?
You need to read this post.
Evaluate Your Financial Capacity by Yourself
Earning money is quite easy these days because you have your options. You can work freelance, go for a high-paying job, or just leave the job and take out a same-day loan in Ireland to start your own business. There are many options available for you, and you do have quite a few turns of yours to choose your profession.
But whether or not you have got a good job, are you aware of the fact that you may not get enough exposure in the job because you haven't evaluated your financial self? Yes, just like a physical self, we have a psychological self, and then there is our financial self that helps manage all the financial aspects of our lives in an easy way.
The following ways might help you more:
1. Turn to Your Needs at First
I have know my mate Ben for a long time. He is a good chap, married, and a father of two. What impressed me most was that he has been very honest with his capacities.
"For example, I am have takeaway food every week, and my kids are loving it, right? Well, turns out it is a good thing to come home to after a long and tedious and boring day at work…and I know that entrepreneurs do so. Some people love doing what they do because they have the power to do that. Do I have that power? That was the first question I asked myself before I even fell asleep to dream about my goals."
These words are wonderfully relevant in today's world. They define how subjective this world is concerning the money you earn. Your financial freedom actually decides the quality of life you live. So, if you are strictly conscious of the capacity of earnings you make and the kind of life goals you have in mind, you may as well find it a little difficult to come up with the idea when you are young because you are still learning yourself; but you can always make a big difference if you try.
2. Find out What You Cannot Compromise
Do I want to say that whatever I said was just rubbish?
Well actually, no!
Think about it. If you compromise your goals, then you are actually making things a little different. Adjusting goals will only make you closer to what reality wants out of you and not what you want out of reality instead.
I am not saying that you need to change reality like a magician. I am saying that your goals matter because you are earning and making your savings account and starting off with healthy money habits just because you can reach your goals at a certain point in time. With that being said, if you are not careful with your goals, then there is no such reason to understand your financial capacity.
Let me give you a stark example of this fact.
Let’s say you want to get a car, and then you think you don’t have the financial capacity to buy it right away. Would you then give up and turn yourself from buying a car and searching for an alternative? No of course!
Your earnings may not suit your choice of buying a car. Maybe you are undergoing a poor credit statement. But, if you can manage to buy that car strategically with a car money loan for bad credit in Ireland and then use your income to pay your direct lender back in time the money you borrowed, then you can literally live your dream even if your pockets are not saying much good news.
Do you see where both worlds met?
3. Identify How Much Savings Is Possible for You
A person earns a lot. That means the same person has the capacity to save like no other as well.
And if the person doesn't earn a lot, then smart thinking and the capacity to looking at money in a different way will obviously help the person save.
I would like to mention Ben one more time. Both he and his wife Evelyn has a wonderful dream of traveling the world when they get a little old (not too old, though). So, they are thinking about it from now onwards and are saving money in a random way to bring forth the result that they want. It will keep them enjoying life because that is what life is about…to do what you want.
But Ben told me beforehand that he wouldn’t spend on what he cannot do.
Think again; maybe you cannot do it now. But you can do it later, right?
The most important thing in this regard is that your savings habit makes a lot for the money you save. But it also tells a lot about you and your goals.
So, if you can identify how much you can save, you can tell yourself why you are saving it and how much you want to spend from it.
And according to that, you will work… simply.
Knowing one’s financial capacity is a difficult thing. But it is also something achievable.
Calm your mind and start thinking about it. You will surely come to a clear conclusion.