I have not done the best job of being a financial manager throughout my adult life. If you’re like me you probably have plenty of excuses, some legit, some are just an attempt to cover character flaws, and others are things you were simply ignorant about. In the end I’ve been thinking about the idea of most important things. Here’s a list that I cam up with, what would you add or change?

Self Discipline

Self discipline is like the super drug of the bunch. There’s really nothing you can do if you’re lacking self discipline. Some suggest things like the automatic millionaire’s principle of automated systems, but the truth of the matter is that those can still be foiled if you don’t have discipline. I lack this sometimes. When my stomach gets in the way, when my greed kicks it up a notch. I really struggle with this at times. Sure, there are other times when I’m dogmatic about things, but not enough to be 100% consistant.

Planning Skills

Lewis & Clark set across the United States with very little information and had to create a map. They had to plan with what little they knew and make up the rest. Good financial management is going to require a little bit of this mindset as well. You have to plan for what you do know, but be prepared to shift courses as needed (more on that later). Planning is like a giant black hole for some. They never feel like they have enough information or their tolerance for risk is so low that they can’t plan anything grandiose because they’re certain that they will fail. So they go back to the drawing board. And again come back looking for more data and then go back to the drawing board. Rinse. Repeat.I tend to take the mindset that I will plan for what I hope tomorrow has, plan for next year, plan for five years and get my focus set in just such a way so that I can adapt as new things arrive on the horizon or show up on the radar - seconds before impact. If you don’t make a plan with what you know you’re not going to get anywhere because you’re lacking the goals you need to succeed.

An Eye for Opportunity

Opportunity knocks just about a hundred times - you need to recognize a good opportunity verses a bad one. I have had opportunities that I have taken and they’ve gone horribly wrong because I didn’t have the instinct to guess right or the discipline to carefully evaluate them. Taking on every opportunity is foolish, ignoring them all is just as dumb. Right now the housing market could be a bad choice, so what else is out there? What investment areas are just unexploited and need your money to grow and leave you living high on the hog?

A United Front

If you’re married then you best be united and not untied. I have mentioned on multiple occasions that my wife really keeps her 100% of the finances on track as much as possible. We make unified decisions. In the Millionaire Mindset it is recorded that wealthy families are not tied to just one of the people in the relationship, its usually both working as a team. For an example of humor and failure read this funny article about a woman who brings only looks into a relationship.

Patience

Patience, with determination, will often bring long term rewards. If your plan is to be a millionaire by some date you need to be focused on success but patient for the fulfillment at a potentially later date. I personally don’t know how I’ve endured some of the things I’ve endured, but money comes and money goes and so I am patient. Had I planned better I’d have probably had a lot less go, but patience is waiting for a good opportunity, waiting for the market to turn around, or waiting to not say anything when someone else is not as well off as you are. Patience is a virtue - do you have patience?

A Voracious Reading Habit

Reading with the purpose of education is invaluable. Be ready to read. Right now I have a book on programming, some theology books, and two books on finances going in my rotation. I make time for each. I also read many blogs faithfully every day so that I can manage everything and continue to feed the most valuable asset I have: my mind. Many of the things I’ve mentioned before are growing and fed by my constant attitude of learning. This blog is designed to help me share what I’m learning and I’m hoping it keeps growing because I keep learning.

Self Confidence

Not relying on others for value or esteem will help you endure the times when you go without. I don’t have a large screen TV. I don’t have a Nintendo Wii. We’re not buying those or an iMac (which would be nice for the family over our older HP desktop machine with CRT monitor). Our value is not in our stuff and our stuff doesn’t prove wealth anyway! Self confidence is what lets us live in a neighborhood that isn’t at the high end of the spectrum, but instead in an older, but established neighborhood. We’ve done lots of thinking, but it hasn’t been about what others think of us.

A Marathon Runner’s Mind

A mind that understands the long term reasons to not spend money now so you can spend money later [see: a ton of bricks]. A marathon runner knows that starting off with a sprint will more than likely mean failure, cramps, or injury later on. Instead the marathon runner paces himself or herself so that they can reach their goal and achieve the mile marker achievements. Debt repayment may be one, but you have to endure and be patient and paced. Your first $20,000.00 may be another. As you see the mile markers pass you start to realize you’re closer to the finish line than you are to the starting line (unless you’re running a circuit).

A Communicating Team

Odds are that you are not keeping all of your money in your home and in a secret hole in your back yard. In that case you need to have great, clear communication with your financial companies, as well as with anyone else you’re doing business. Make sure that you make communication a priority. Today I called one of my credit card companies and discussed my interest rate with them. I wanted to make sure I knew what I was getting and what they were charging me. When you trade mutual funds you need to be aware of what the funds are doing and where your fund is heading. Your broker will be able to get that info to you online, or you may need to call certain people to keep up to date on things.

I use wesabe.com because it allows me to manage much of my financial information in one place. Its communication simplified. If you’re not using a tool of some sort to manage your finances you should consider it because its part of the communication process.

An Inexpensive, Enjoyable Hobby

You need to be able to unwind at times in life and its handy if there is a hobby that can let you do so without breaking the bank. My wife can scrapbook with the best of them but much of what she’s got was in gifts. She can spend some money now and it allows her to be creative, relax, enjoy memories and spend relatively little now that she’s got so many tools to use. I have musical instruments, many of which are older or used, but they let me play and have fun. Some people enjoy walking. Some people enjoy window shopping (without cash to blow), and some people enjoy fishing. Whatever your hobby, consider the long term costs and make sure that you give yourself some time to relax because it will help keep your life balanced.

So those are some areas that I think you and I as money managers need to be honed in on. What am I missing? Do you agree with me? I’d like to invite your comments or blog post responses. I’ve got to work on several of these areas, but I think they’re key to my financial success.

All pictures are creative commons and you can click on them to see them on Flickr.com.

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