Tag: goal (page 2 of 3)

Skill Issue: Anything Can Be Learned and Solved

Every unsolved problem in your life points to a skill issue.

Think about it: if you had the skill, the problem would already be solved.

  • If you knew how to communicate better, that relationship conflict wouldn’t exist.
  • If you understood money, your finances wouldn’t stress you out.
  • If you mastered focus, procrastination wouldn’t haunt you.

Most of what we call “problems” are really just things we don’t yet know how to do.

And once you see this, everything changes.

Why Problems Linger: The Four Traps

If every problem is simply a skill issue, why do so many issues stay unresolved, year after year?

The answer lies in four major traps we fall into when facing challenges.

Trap 1: We Wait for Perfect Conditions

Most people wait for the “right time” to tackle their problems. They tell themselves they’ll start when they have more money, more time, more energy, or more support.

But perfect conditions never come. Meanwhile, the problem grows while you wait.

Trap 2: We Blame External Circumstances

It’s easier to point fingers at the economy, our upbringing, our boss, or our environment than to look in the mirror.

External factors matter, but they become convenient excuses that keep us stuck.

Trap 3: We Lack Clear Systems and Processes

Many problems persist because we approach them randomly. We try something once, give up when it doesn’t work immediately, then try something completely different.

No consistency. No system. Just chaos.

Trap 4: We Don’t Have the Skills to Solve Them

This is the biggest trap of why problems remain unsolved.

You can have all the motivation in the world, but if you lack the specific skills needed to tackle your challenge, you’re just spinning your wheels.

A person who wants to build a business but has no skills in sales, marketing, or financial management will struggle endlessly.

Someone who wants better relationships but hasn’t developed communication or emotional intelligence skills will keep hitting the same walls.

The harsh reality is that your problems are customised to expose your weaknesses.

They’re showing you exactly where you need to grow.

Why Your Problems Will Remain Unsolved Without Skill Development

If you don’t develop the skills, the problem wins. It’s that simple.

You can’t manifest your way out of a skill issue.

The gap between where you are and where you want to be is filled with specific, learnable skills.

Without developing these skills, you’ll keep encountering the same problems in different disguises.

The person who can’t communicate effectively will struggle in every relationship, whether romantic, professional, or personal.

Someone who can’t manage their time will feel overwhelmed in every season of life.

The person who can’t delay gratification will sabotage every goal they set.

Your problems are teachers. They’re showing up repeatedly because you haven’t learned the lesson yet. And that lesson is always a skill waiting to be developed.

Here’s what happens when you stop developing skills:

You stay dependent on others to solve your problems. Also, you remain stuck at your current level. You waste time trying the same ineffective approaches.

And worst of all, you start believing the problem is permanent when it’s actually just a temporary skill issue.

What Are Skills and How Do They Solve Your Problems?

As time goes on, you will realise that a person’s life changes when they discover everything is a skill.

The goal you currently strive for is just a couple of skills you must learn and build.

Discipline is a skill. Patience is a skill. Being funny is a skill.

Socialising is a skill. Making Money is a skill. Saving money is a skill.

Being good at anything is a skill. Everything now depends on your skillset.

A skill is your ability to do something well.

I love how wild_stoic puts it – “Skills are not magical words that you either do or don’t have. They are things that you build through repetition.”

This makes it simple to understand because repetition leads to Mastery. And mastery leads to the fulfilment of your goal.

Your Skill Issue might be the Underlying Problem

Your Skill Issue might be the Underlying Problem

Think of skills as the bridge between your current reality and your desired future. Every skill you master is another bridge you can cross, another problem you can solve, another level you can reach.

The beautiful thing about skills is that they compound. Learning one skill often makes the next skill easier to learn.

For instance, improving your communication skills help you network, which helps you build business skills, which helps you develop leadership skills. It’s a beautiful upward spiral.

How to Turn a Problem into a Skill (Or Set of Skills)

To break free from the skill issue trap, you need a process. You need a framework to transform a large, scary problem into a small, manageable, repeatable task.

This framework is in 3 steps:

Step 1: Break It into Chunks and Daily Tasks

The brain hates complexity.

When something feels “too big,” it shuts down. That’s why most people procrastinate. To beat this, chunk the problem down.

Chunking is a phenomenon where a task is split into smaller units for easy doing.

To begin chunking, ask yourself:

  1. What is the smallest single element of this skill that I can master?
  2. What other chunks link to that chunk?

Practice one chunk by itself until you’ve mastered it. Then connect more chunks, one by one, exactly as you would combine letters to form a word. Then combine those chunks into still bigger chunks. And so on.

Go a step further by creating a daily action.

Which daily task would you need to complete to make noticeable, progressive progress in your selected skill?

An Example is Elon Musk and Rocket Science

When Elon Musk decided to build SpaceX, he didn’t have aerospace engineering skills.

Elon could have seen this as an impossible problem. Instead, he broke it down. He started by reading textbooks on rocket propulsion. Then he learned about materials science. Then orbital mechanics.

Each concept was a chunk he mastered before moving to the next. Elon Musk didn’t try to understand everything at once. He chunked it.

Step 2: Execute with 30 for 30 or with Deep Work

Execution turns plans into reality. Use these two methods for momentum:

30-for-30: Do the daily task for 30 minutes per day for 30 straight days. 30 days is meaningful enough as a commitment that you can’t be half-in, but 30 minutes is short enough that you can convince yourself to take it on.

900 minutes of effort in a single month is enough to create tangible progress that will keep you pushing forward. This is the optimal approach for getting started on any new area of progress.

Deep Work: Deep work means carving out 1-2 blocks of time per day when you will enter a deeply focused state to make progress against your area of choice.

These blocks are generally 1-2 hours for most people and should be completed without distraction. This is the optimal strategy for big professional goals.

Recommendation: Start with 30-for-30 and then transition to Deep Work after a few months if you feel motivated and energised to go harder.

A direct example would be Cal Newport and writing best-selling books

Cal Newport, the author who popularised this second method of execution, is a master of Deep Work.

His problem was navigating an intense academic career while also producing multiple, complex best-selling books. Cal solved this by creating a highly regimented skill: scheduled, distraction-free deep work blocks.

Cal did not rely on inspiration. He relied on the practised skill of focused execution, which allowed him to achieve a high output with exceptional quality.

Step 3: Teach Others What You Are Learning

The ultimate test of your knowledge is your capacity to transfer it to another.

The Feynman Technique is a simple and popular way of teaching others while developing mastery over your newly acquired skill. There are four steps to his method:

  1. Teach your skill in its simplest form.
  2. Identify gaps in your explanation. Go back to the source material to better understand it.
  3. Organise and simplify your information.
  4. Transmit and transfer till the other person understands it.

But remember, apply the skill or solve your problem before you teach or share with others.

How Richard Feynman became the reference example for teaching others.

The Nobel Prize-winning physicist would take complex concepts from quantum mechanics and try to explain them to undergraduates. In forcing himself to simplify, he often found new insights and a deeper mastery of his own field.

When you can teach something simply, you’ve truly learned it.

How to Overcome Your Skill Issue

How to Overcome Your Skill Issue

Real People Who Solved Their Problems Through Skills

Let’s look at real examples of successful people who transformed their lives by developing the right skills:

1. Oprah Winfrey: Communication and Emotional Intelligence

Oprah faced poverty, abuse, and discrimination early in life.

These weren’t problems she could wish away. She developed exceptional communication skills, learned how to connect with people authentically, and mastered the art of storytelling.

These skills transformed Oprah Winfrey from a local news anchor to a global media mogul.

2. Tony Elumelu: Financial Literacy and Strategic Thinking

The Nigerian banker and entrepreneur didn’t start wealthy.

Tony faced the common problem many Nigerians face: limited economic opportunities. Instead of complaining, he developed deep skills in banking, investment, and strategic business thinking. He learned how money moves, how businesses scale, and how to create value.

Today, he’s one of Africa’s most successful entrepreneurs and philanthropists, having built a business empire and created the Tony Elumelu Foundation to empower other African entrepreneurs.

3. Arnold Schwarzenegger: Multiple Skill Stacking

Arnold arrived in America with nothing but a bodybuilding title.

He faced language barriers, limited connections, and no clear path forward. But he didn’t see these as permanent obstacles. He developed skills in real estate investing while still bodybuilding.

Then Arnold learned acting skills, taking speech lessons to improve his English. Then he learned political skills and communication.

Each skill solved a different problem and stacking them made him unstoppable.

It Only Gets Better from Here On

When you see things from this angle, I strongly believe you can do anything you want if you practice it enough.

You no longer have an excuse not to do anything.

Your unsolved problems aren’t proof that you’re broken. They’re simply showing you which skills you need to develop next.

Your life changes when your skill issue is solved

Your life changes when your skill issue is solved

The person with financial problems needs financial literacy skills. Relationship problems need communication and emotional regulation skills. The person with career problems needs either technical skills, people skills, or both.

Stop seeing your problems as evidence of your limitations. Start seeing them as your personalised curriculum for growth.

Every expert was once a beginner.

The only difference between someone who solved their problem and someone who’s still stuck is that one person committed to developing the necessary skills while the other kept waiting for circumstances to change.

The problems in your life aren’t going anywhere until you grow into the person who has the skills to solve them.

So, what problem have you been avoiding? What skill would solve it if you developed it?

Answering these two questions will determine your next move.

Build the skill, and the problem will disappear.

It’s not magic. It’s just practice.

Whenever you’re ready, there are 3 ways I can help you:

  1. Become Your Highest Self Newsletter: Every Sunday, I share actionable tips from successful people on how to master money, mindset and meaning.
  2. Fast Track Book: Stay relevant, master new skills, and be ready for whatever life throws at you.  This is the complete roadmap to speed up your learning process and expand the opportunities available to you. Available on Amazon.
  3. Personal Wealth Maximizer: Take control of your finances and build financial freedom. The Personal Wealth Maximizer give you the exact knowledge and tools to break free from money struggles and build financial confidence.

Clear Thinking: How and Why Do People Make Bad Decisions?

Before you read further, two things must be established:

  1. How you spend our days is how you spend your life. Being Present is all you need to spend yours wisely.
  2. Life is full of challenges. The Solution is to know how to solve problems.

I already wrote comprehensive guides that address the above, but I realised there is still a key missing.

Why do people make bad decisions? Why do some people with the same information consistently perform better than others?

How can you reduce the likelihood of a negative outcome when your life is at stake and increase your chances of being correct?

How can we get better at reasoning?

Finding the Key to Maximising Everyday Situations when Solving Problems

I found a book that answers these questions.

In this book, it states that we need to take two actions to achieve the outcomes we want.

  1. Make room for reason in our thoughts, feelings, and behaviours.
  2. Consciously use this room to think clearly.

The book is by Shane Parrish (the owner of Farnam Street Blog), and its title is Clear Thinking: Turning Ordinary Moments into Extraordinary Results

This book provides a valuable guide for developing clear thinking skills. You will discover that you have an invincible edge once you have perfected this ability. Clear-headed decisions put you in better positions.

And success will only get better from there.

The Power of Clear Thinking in Ordinary Moments

Your future is determined by what happens in everyday situations.

We are trained to concentrate on significant choices rather than the times when we aren’t even aware that we are making a decision.

However, these everyday occurrences frequently have a greater impact on our success than the major choices. It can be challenging to appreciate this.

Most of the time, the circumstances speak for us.

Because these moments seem so unimportant at the time, we are unaware of it. But as days stretch into weeks and weeks into months, the accumulation of these moments determines how easy or difficult it is to achieve our objectives.

You are in a better or worse position to deal with the future at every moment.

In the end, how you position yourself determines how easy or difficult life will be. Instead of letting circumstances force you to make a decision, a good position enables you to think clearly.

The best people in the world rarely make decisions based on external pressures, which is one reason they consistently make wise choices.

Being in a good position at the beginning is the biggest help to decision-making.

If you can out-position someone, you can outperform them without being smarter than them. When in a good situation, anyone appears brilliant. And when in a bad one, even the smartest person appears foolish.

There are numerous ways to succeed when you are in a good position.

Clear Thinking

Clear Thinking is Key to Proper Positioning

This can be compared to playing Tetris. Playing well gives you a lot of choices for where to place the next piece. But when you’re playing badly, you wait for the right piece.

Many people fail to realise that everyday situations determine your position, and your position dictates your options.

Clear Thinking is the Key to Proper Positioning

You can control your situation rather than let it control you by developing your ability to think clearly.

It makes no difference what position you are in now. Whether you improve your position today is what counts. Every everyday situation presents a chance to either make the future simpler or more complex.

It all depends on how clearly you’re thinking.

The Enemies of Clear Thinking

If you don’t know when to use reason, it’s a waste.

For instance, this is a moment after something triggers you, but before you react. In that tiny window, you have two options:

  1. Pause and think rationally.
  2. React automatically.

The problem is that our automatic behaviour often makes things worse.

For example:

  • Someone criticises your work → you immediately get defensive and argue back
  • You see a scary news headline → You immediately share it and panic
  • Someone cuts you off → You assume malice on their part.

Therefore, the first step in improving our results is to teach ourselves to recognise the right decisions in the first place and to take a moment to clear our minds.

Because it entails resetting our ingrained biological defaults that have developed over many centuries, this training takes a lot of time and effort.

However, mastering the everyday events that shape the future is not only feasible but also essential to success and reaching your long-term goals.

Avoid the High Cost of Losing Control

Any situation is made worse by irrational reactions.

The time and effort you invest in correcting your unintentional mistakes come at the expense of achieving your desired results.

There is a big benefit to focusing more of your energy on reaching your goals rather than increasing your problems.

Because in the end, the person who develops clear thinking skills puts more of their total effort toward achieving their goals than the one who doesn’t.

However, if you are unable to control your automatic behaviours (or defaults), you have little chance of thinking clearly.

Recognising the Four Enemies of Clear Thinking

Many things work against rational thought.

This includes emotions like anger or fear, cognitive biases, social pressure, stress, or simply being in a hurry.

These “autopilots” try to skip that pause and push you straight into automatic reactions.

However, there are four major autopilots.

  1. The Emotional Autopilot: We react based on how we feel instead of what’s true.
  2. The Ego Autopilot: We get defensive when our ego or status feels attacked.
  3. The Social Autopilot: We go along with what everyone else is doing.
  4. The Comfort Autopilot: We stick with what’s familiar with and avoid change.

The “autopilot” metaphor captures how these responses happen automatically, without conscious control. It’s just like a plane on autopilot flies without the pilot actively steering.

Each represents a different way our minds switch to automatic mode instead of engaging our rational, deliberate thinking.

The Four Enemies of Clear Thinking

The Four Enemies of Clear Thinking

These autopilots frequently overlap with one another; there are no distinct boundaries between them. Unforced errors can be caused by either one alone, but when they combine, the situation rapidly deteriorates.

The best outcomes in the real world are obtained by those who master their autopilots. They simply know how to manage their ego and temper rather than allowing them to control them.

It’s not that they don’t have either. They constantly position themselves favourably for tomorrow because they can think clearly in everyday situations today.

The Emotional Autopilot

Even the most intelligent people can become foolish due to their emotions, which prevent them from thinking clearly.

For instance,

  • You can’t act in your own best interests when you’re angry at a competitor.
  • You also act impulsively and cut off your thought process out of fear of missing an opportunity.
  • Sometimes, you distance yourself from possible allies when you become outraged at a criticism and react defensively.

The list is endless.

Watch out if you find yourself in any of these situations! Most likely, the emotional autopilot is in charge.

The Ego Autopilot

We are prompted by the ego autopilot to defend and enhance our self-image at all costs.

Our ego tempts us into believing we are more than we actually are. It wants us to appear successful rather than being successful.

The ego causes us to prioritise preserving or enhancing our perceived position in a social hierarchy rather than expanding our knowledge or skill set.

When left unchecked, the ego autopilot has the potential to transform confidence into arrogance or even overconfidence.

For instance, after gaining some knowledge from the internet, we become arrogant. Everything appears to be simple. We consequently take chances that we might not be aware of.  But if we want the outcomes we want, we must fight this kind of undeserved confidence.

Undeserved confidence created by the ego autopilot simply rushes us to bad decisions and blinds us to risk.

How the Ego Autopilot Sometimes Affects Us at Work

Having others rely on us for every decision makes us feel significant and indispensable.

This is one reason why people find it difficult to empower others at work. Having them rely on us gives us a sense of strength and necessity. We feel more powerful the more people rely on us.

Nevertheless, this stance frequently backfires. We gradually become prisoners of the conditions we have created. Because when it takes more and more work to remain in one spot, we get closer to the limit of brute force. Things are bound to break eventually with this type of mindset.

The Ego Autopilot Chooses Feeling Right Over Being Right

We are compelled by the ego autopilot to prioritise feeling right over being right.

Nothing feels better than being correct, to the point where we will unwittingly rearrange the world into artificial hierarchies to preserve our beliefs and improve our self-esteem.

Most people live their lives believing that they are correct and that others who disagree with them are incorrect. We confuse the way the world is with how we would like it to be. We assume that the world operates the way we want it to.

Here are some ways to know if the Ego Autopilot is in charge:

  • You find yourself putting a lot of effort into how you are perceived.
  • Sometimes, you frequently feel like your pride is being damaged
  • You read a few articles on a subject and believe you are an expert,
  • At certain times, you constantly try to prove yourself correct and find it difficult to admit your mistakes
  • You find it difficult to say “I don’t know,”
  • You’re constantly jealous of others or feel like you never get the credit you deserve.

Be on guard! Your ego is in charge in these moments.

The Social Autopilot

The social autopilot encourages conformity.

It persuades us to adopt a viewpoint or conduct just because others do. The desire to fit in, the fear of being an outsider, the fear of being ridiculed, and the fear of disappointing others. These are all examples of what is meant by the term “social pressure.”

We are encouraged by the social autopilot to delegate our ideas, opinions, and results to other people.

It’s simple to justify doing something when everyone else is doing it. There’s no need to stand out, accept accountability for results, or think independently. Simply put your mind on autopilot and go to sleep.

The social autopilot also makes us show off our “good” opinions to get approval from others, especially when it costs us nothing to do so.

Disengage from the Social Autopilot to Stand Out

We fear rejection, mockery, and being treated like idiots because of the social autopilot.

Most people tend to accept the social norm because they believe that the risk of losing social capital outweighs any potential benefits of doing otherwise. Fear prevents us from taking chances and realizing our full potential.

Although there is occasionally wisdom in following the crowd, the big lie of the social autopilot is to mistake the group’s comfort for proof that your actions will produce better outcomes.

If you’re doing the same work as everyone, the only way to outperform is to put in more effort than anyone else.

Shamelessness is Necessary for Success.

You could perform worse if you try something different, but you could also completely alter the game. No doubt, you will achieve the same outcomes as everyone else if you follow their lead.

At the beginning, follow everyone else’s lead if you lack the knowledge necessary to make your own decisions. But you’ll need to think clearly if you want better-than-average results. Additionally, thinking clearly means thinking on your own.

It’s sometimes necessary to defy social norms and act in a way that differs from what others are doing. It’s going to get uncomfortable, so be prepared.

Be Different and Be Correct

The fact that other people agree or disagree with you makes you neither right nor wrong. You will be right if your facts and reasoning are correct.

– Warren Buffett

Doing something different isn’t enough to succeed; you also need to be correct.

You must think differently to act differently. You will stand out as a result, but change only occurs when you are prepared to think for yourself, do what no one else is doing, and take the chance of appearing foolish.

Once you also see that you’ve been following everyone else’s lead, and only because they are already doing it, then it’s time to try something different.

Here are some ways to know if the Social Autopilot is in charge:

  • You frequently worry about disappointing other people,
  • At certain times, you are afraid of being an outsider,
  • You are terrified of being mocked,
  • You find yourself trying to blend in with a crowd.

The Comfort Autopilot

The Comfort Autopilot pushes us to maintain the status quo.

It’s difficult to start something, but it’s also difficult to stop something. Even when change is beneficial, we still oppose it.

Objects never change if they’re left alone. Until something stops them, they don’t stop moving or begin on their own. Human behaviour and our natural tendency to oppose even positive changes can also be explained by this law of physics.

Once our minds are set in a direction, they tend to continue in that direction unless acted upon by some outside force. This cognitive inertia is why changing our minds is hard.

– Leonard Mlodinov

Because we know what to expect and it’s reassuring to have our expectations consistently met, inertia keeps us in unhealthy relationships and unfulfilling jobs.

The fact that maintaining the status quo takes virtually no work is one of the reasons we oppose change. This explains why we become complacent. Building momentum requires a lot of work but keeping it up requires much less.

The comfort autopilot takes advantage of our inclination to stick with tried-and-true methods or norms even when they are no longer the best. The fear that trying something new will result in worse outcomes is another reason why we often resist change.

When it comes to comfort, the “zone of average” is a dangerous place. It’s the moment when everything is functioning so smoothly that we don’t think any adjustments are necessary. We’re hoping for a miraculous improvement. They hardly ever do, of course.

Comfort Autopilot is What Causes You to Double Down when you are Wrong

We must adjust when conditions shift.

However, comfort narrows perspectives and drains the will to change our current course of action. It discourages experimentation and course correction and makes it more difficult to envision alternative approaches.

Additionally, comfort keeps us from doing hard things. It gets harder to do the difficult thing we know we should do the longer we put it off.

Avoiding conflict is comfortable and easy.

But the more time we spend avoiding the conflict, the more energy we use to keep avoiding it.

Avoiding a small but challenging conversation soon escalates into avoiding a big and seemingly insurmountable one. Our relationship eventually suffers because of the weight of what we avoid.

We continue to act in ways that don’t lead to our desired outcomes because of comfort. It mostly goes unnoticed in our subconscious until its effects become too difficult to reverse.

Here are some ways to know if the Comfort Autopilot is in charge:

  • You or your team are resisting change or sticking to a particular method just because it’s how you’ve always done it.
  • You find yourself refusing to share ideas in group settings.

Override to Clarity

We can’t turn off our autopilots, but we can reprogram them.

If we want better outcomes, achieve our goals, and find more joy and meaning in life, we need to learn how to override our autopilots when they’re steering us wrong.

The good news is that we can rewire the same biological tendencies that cause us to act without thinking to work in our favor.

Those who have the best environments tend to have the best autopilots.

Sometimes it’s pure luck, and other times it’s a part of a calculated plan. In any case, when everyone else is acting in a certain way, it’s simpler to follow suit.

Creating an intentional environment where your desired behavior becomes the default behavior is a better way to override your autopilots than using willpower.

Joining groups whose autopilots are set to your desired behaviors is an effective way to create an intentional environment.

Clear Thinking comes from Creating an Intentional Environment.

Clear Thinking comes from creating an Intentional Environment.

If you want to read more, join a book club. To run more, join a running club. If you want to exercise more, hire a trainer.

Your chosen environment, rather than your willpower alone, will help reprogram your autopilots toward better choices.

This is the foundation of thinking clearly to avoid making bad decisions.

Whenever you’re ready, there are 3 ways I can help you:

  1. Become Your Highest Self: Every Sunday, I share actionable tips from successful people on how to master money, mindset and meaning. (Please confirm your subscription on the first mail received so the newsletter does not go to junk.)
  2. Fast Track Book: Stay relevant, master new skills, and be ready for whatever life throws at you.  This is the complete roadmap to speed up your learning process and expand the opportunities available to you. Available on Amazon.
  3. Personal Wealth Maximizer: Take control of your finances and build financial freedom. The Personal Wealth Maximizer give you the exact knowledge and tools to break free from money struggles and build financial confidence.

Spending Habits: Almost Everyone Spends Carelessly

No matter how hard you try, managing your spending habits as a young person will always be difficult.

But it should not be as challenging as it sounds.

Because managing how you spend your money can (and likely will) be a major contribution to your long-term wealth – if you are paying attention.

Today, I’m introducing four simple tips to managing your spending habits.

Let’s dive in.

Spending Habits

Spending Habits

Your Spending Habits Can Always be Improved

Many young people don’t have a clear understanding of where their money is going due to a lack of tracking and awareness.

It’s possible that you have never received formal education or guidance on personal finance management. Or budgeting. And the importance of tracking expenses.

Or it could be impulse spending. With easy access to digital payments and a world of online temptations, it’s easy to spend without thinking twice.

What about peer pressure? The desire to keep with your friends, school mates and colleagues’ spending habits can also lead to overspending.

All these habits are natural to young people, but it should not be left to chance in your case. Your goal is to create and grow wealth both in the short and long term.

So how can you improve your spending habits?

Here are four practical ways, with some real-world scenarios.

Tip #1: Analyze and Track your Current Expenses

First things first – before you start spending your next money, analyze your previous expenses including small purchases. Allow yourself to look at your bank account to understand what is going on. Because you won’t learn anything if you make more money, and not pay attention to how you currently spend it.

Example – let’s say you got a credit alert and now you cannot account for the money. Don’t just shrug it off and move on.

Instead, open your bank app and take some time to look at your debit alerts, receiving account numbers and transaction charges. What did you spend money on that was not necessary?

At first glance, it might be difficult to fish out the ‘why’ behind your spending habits. But analyze your spending patterns to identify areas where you can cut back or adjust. Look for recurring expenses that may be unnecessary.

You’ll be better equipped in your financial journey if you can learn to analyze and track your expenses. “What could I have done better here?” is a powerful question to consider when tracking your expenses.

Tip #2: Categorize your Spending.

When you have an idea about what you spend your money on and what should be left, your next step is to categorize your spending, based on your findings.

Divide your expenses into categories like rent, groceries, entertainment, etc. This helps you identify areas where you might be overspending.

Sometimes, we are used to some expenses that we can’t see that they might be unnecessary or repeated too often. So, sort your debit alerts. Use apps or spreadsheets to categorize spending for better visibility. You’ll be impressed by the valuable information these tools will give you – if you’re not lazy and willing to look at them.

Tip #3: Create a Budget

Now that you have analyzed your current expenses and labelled your spending, it’s time to do something with this valuable information.

Based on your income and expenses, create a budget that allocates funds for essential needs, savings, and discretionary spending. Even with limited income, a budget helps prioritize needs and identify areas to cut back.

Stick to this budget as much as possible.

Because this is where most young people, including the financially literate ones give up.

Sticking to your budget might be the most challenging thing ever. But if you can manage it, there are a whole lot of benefits on the other side.

Tip #4: Find a Tracking Method that Works for You

There are many options! Try a budgeting app, a physical notebook, or even a spreadsheet. The key is to find something you’ll use consistently.

Utilize budgeting apps, spreadsheets, or online tools to easily record and categorize your expenses. Many of these tools can provide visual representations of your spending patterns.

I recently had a tracking problem with my budgeting tool, and I discussed it with my colleague, who was kind enough to help. He shared how he combines his tracking with a spreadsheet for budgeting and his Notes app for instant expenses and I had this major “a-ha” moment.

And on this tip – it’s worth mentioning – Make sure you review regularly. Regularly review your budget, expenses, and progress towards financial goals.

Adjust as needed to stay on track.

Your Money, Your Rules

Managing money and building wealth legally as a young person is a unique experience, no doubt.

But remember this. When you hit a bad spending ditch, whether unexpected expenses, or financial debt – it’s not the end of the world.

These spending habits are just small signals telling you there are other directions to explore. That you haven’t arrived at your destination quite yet.

I hope these little tips will help you navigate your financial journey. And maybe they’re just the push you need to get back on track and keep going.

“If you buy what you don’t need, you steal from yourself.”