These tips could be a little uncomfortable for some people.
Especially the kind of people who spend money they don't have to impress people they don't know.
These 3 ideas can help someone who's struggling with their money to get that under control and have a much easier and stress free life.
So let's get started:
This is by far the most important thing I can think of if you want to stop being poor and start to build wealth.
So many of my clients who have come to me for help with their money have gotten into their bad situation by doing one or more of the following:
Most genuinely wealthy people don't care to impress strangers. They might still have enough money to OWN very nice things, but I can assure you that they do not get loans for them, and only ever spend a small PERCENTAGE of their net worth when buying nice things.
I could buy the car I drive with only 1 weeks wages.
Do I want a nicer car? Yep, for sure.
Do I need a nicer car? Nope. Not at all.
My car is an income producing asset. True, I care a little bit when my friends see me in it. But my friends also know that I've been financially free for over 10 years. My friends judge me on that, not my car.
Stop spending money you don't have to impress people you don't know.
So next time a marketing campaign has you taking out your credit card to buy something you have been convinced you need, try this little hack:
it's a bit like ripping off a band aid. You've just gotta get right in there and make it quick!
Choose a day in the next week or so and commit to doing the work that is necessary. Get out all of your money stuff:
And lay them out on your dining room table. Make an agreement with yourself that you have to eat on the floor until it's organised, entered into a spreadsheet and added up.
No matter how horrible it feels!
Auditing your finances is one of the most tedious and most rewarding things you can do in 2020. There's an incredible feeling that comes the moment you begin. It's called relief.
You know you need to do it. Thinking about your money takes up space in your mind, whether you know it or not. Auditing your own finances will release so much baggage that you'll probably never let it get this bad ever again. And that's another reason it's such a good idea.
Once you do it properly, the next time will be so much easier. You'll have a structure and some sort of system. You'll be able to visualise the task ahead in future years and tit will therefore be easier to tackle.
Let's face it, your personal finances take up a significant portion of your time, energy, stress and thoughts.
Facing up to the truth and getting on top of the problem will release a good amount of that time, energy, stress and enable you to think and devote yourself to much more inspiring and important things in the future...
Nothing feels better than being in charge of your personal finances!
Money is a store of your time and energy. Having a stash of money as a back up enables you to:
If you haven't successfully saved and invested much in the past, then here's the best way to get started:
So get the worksheet and do the work. It will take you less than an hour to complete and it will help you to save and invest.
We're in difficult times.
A lot is changing really fast and for those who are prepared and who have savings to invest, there will be some amazing opportunities for you in the next year or two.
There's no time to waste!
Get off Netflix, just for one night at least and do the groundwork so that you have a better life in the years ahead.
If you haven't already done so, be sure to register for my Tuesday night webinar called Master Your Money. I'll show you even more ways to take control or your spending and master your savings.
It's totally FREE and could go on to be one of the best 1 hour investments of your life!