Good communication is a great tool for our daily dealings in life. Its importance in both academics and career is no longer a new topic for all of us. We already know that communication can make a student earn good grades. This is when his or her comprehension of topics and lessons is grounded with good communication skills. Likewise, we already know that an employee can earn a promotion with communication because he or she uses this tool to lead his or her team towards their organizational goals. But there is this one important aspect in our daily lives where communication also plays a key role yet it is oftentimes ignored – that is its role in our finances.
- What is Financial Freedom?
Yes, communication is powerful enough that it can even guarantee our financial freedom. What is financial freedom by the way? According to MoneyFit.org, financial freedom means having adequate savings, investments, and cash on hand to afford the life that we want for ourselves and our families. Investmentu.com also gave a rather simple description of financial freedom – the status of having sufficient savings and income to pay your daily expenses for the rest of your life. Using these two definitions, I would like to give my own take of what financial freedom is. For me, it is a state where your financial worries do not exist. Financial freedom is the absence of financial worries. You may ask, is that state possible? Yes, it is and to achieve that, you need to have good communication skills.
Financial freedom is when the present does not worry you because you know that you have a stable source of income. The future does not also worry you because you know that you're financially prepared for old age and any contingency.
- What is Good Communication?
Now, what exactly is good communication? Most people fail to see the value of good communication skills. They mostly just rely on their technical skills to get them to financial freedom. They think that their physical hard work alone can make them prosper. Well, for some, that might work. But as they say, you should not only work hard but also work smart. I believe that this distinguishes a person that can achieve financial freedom from someone who barely gets there.
communication skills encompass the abilities to demonstrate a wide vocabulary and adjust your language according to your audience, listen effectively, present your ideas appropriately, write clearly and concisely, and work well in a group. Good communication skills mean you understand people and situations well and in case of issues, you will know how to address them properly. I hope you’re getting a better grasp now of how good communication can help you with your financial freedom. We will discuss in the succeeding paragraphs how these communication abilities can be applied in our finances.
- How good communication can guarantee financial freedom
According to surveys and studies, the most common reason for unhappy marriages that lead to divorces is bad communication between the husband and the wife. And what do they usually argue about? Finances. Their failure to talk appropriately and effectively about their income, budgets and spending leads to arguments that turn to financial worries. These worries pile up until it ruins the entire relationship.
- Interpersonal communication: Good communication helps you get the best out of financial transactions with other people.
The ‘unhappy marriage’ situation is only an example of how bad communication can pull you away from financial freedom. Take this for a simple example which most of you will probably relate to: have you ever felt rattled while you're ordering on fast food and you ended up upsizing your drinks instead of just the regular? You felt nervous because you’re not equipped with good communication skills. You failed to present your idea or in this situation, your order, appropriately. Had you known better and didn’t rattle, you could have avoided the unnecessary upgrade on your drinks. Thus, you could have spent less.
Another example, suppose you need to take a loan to start a business so you went to a bank. Normally, the teller who you will transact with will act in favor of the bank. So, she will offer you different options regarding your principal, interest rates, and payment methods. If you don't have good communication skills, you will have a hard time listening and understanding what the teller will be discussing. At the same time, even if you know in your mind what it is exactly that you need, you will have trouble expressing yourself without the proper communication skills. If these happen, chances are, you will grab whatever the teller proposes to you without even recognizing other options. Since you failed to communicate your needs well, you may end up paying regularly for a loan that charges too much than you can handle. As a result, you may end up having late payments and past due accounts, definitely something to worry about.
Therefore, you need good communication to land on your most favorable side of a financial transaction. People who know how to communicate well always end up getting the best out of their financial dealings.
- Intrapersonal communication: Good communication helps you communicate your financial plans and decisions to yourself.
Interpersonal communication or the process of communicating with one’s self can be done through self-talks and visualization. Financial freedom always starts with you. The first step towards it is to have a clear goal, plan, and vision. You have to know where you want to be and how you plan to get there. Experts say that interpersonal communication is better when put to writing and as I’ve mentioned earlier, good communication also entails the ability to write concisely and clearly. If you have good communication skills then you will know how to properly write your goals and vision. You will also know how to design an effective financial plan.
Why is writing down your plans important? Why is good interpersonal communication relevant? Because when you have concrete financial plans, you are already 60% nearer to financial freedom. You already have a guide and more often than not, it will lead your actions and decisions to your end-result. The 40% will be your actions and decisions that you will be making with other people.
Thus, we can then say that financial freedom can be guaranteed with 60% good INTRApersonal and 40% effective INTERpersonal communication.
Communication skills are often neglected but through this article that highlights its role in our finances, I hope you will start striving to develop and improve your communication skills.