Do you lose sleep over your dismal financial situation? Are you fighting with your partner about money?
How To Create Your Desired Financial Situation In 3 Simple Ways:
- Stop Spending More Than You Earn. Simple
I know this sounds a tad ridiculous but you would be surprised at how many people we meet that can’t manage this very simple money principle.
In the book ‘Richest Man in Babylon’ George S Clason talks about controlling your spending. ‘Necessary expenses’ will always grow to equal your income unless you protest to the contrary. Do not confuse the necessary expenses with your desires.
The book offers an understanding of – and solution to – your personal financial challenges that will guide you through a lifetime. Babylon became the wealthiest city of the ancient world because its citizens were the richest people of their time. They appreciated the value of money. They practised sound financial principles in acquiring money, keeping money and making their money earn more money. They provided for themselves what we all desire… incomes for the future.
They appreciated the value of money. They practised sound financial principles in acquiring money, keeping money and making their money earn more money. They provided for themselves what we all desire… incomes for the future.
Unfortunately few people know how to acquire wealth as most people lack the knowledge of how to keep any part of income earned.
Without wisdom your money is quickly lost by those who have it. But with wisdom wealth can be secured by those who don’t currently have it.
Money is plentiful for those who understand the simple rules of its acquisition.
Read the 7 Rules of Money Acquisition.
- Introduce Money Monday Into Your Life
Recently a client shared her disappointment about her relationship with her husband as he never wants to get involved in the finances.
We discussed some strategies she could introduce, hopefully reducing the stress on their relationship.
Statistics show that financial hardship is one of the top 3 reasons why families break apart and there are things you can do to ‘lighten the load’.
Often one partner has sole responsibility for the finances, as in this case. Each time a bill arrives there doesn’t seem to be enough funds in the bank account and with a non-involved husband she is at breaking point.
One solution which a number of our clients successfully use is to sit down together and work out some strategies like those below:
- Do a budget so you have a clear understanding of exactly what is coming in, what is going out and work out where you can start cutting down.
- Contact all of your bill providers and see if you can get a better deal. A simple phone call can save a couple of hundred dollars.
- Focus on paying off any debt where you pay interest – credit cards, car loans, personal loans, your home loan.
Schedule a Money Monday session in to your diary on a monthly basis where you allocate a couple of hours to just this. During the month when bills come in, or anything that needs actioning simply file it away in an in tray to be actioned during this time. Do it together.
What are the benefits of doing this? Things get done on a monthly basis so you are always up-to-date which makes tax time a breeze and saves any arguments throughout the month about who was supposed to pay the phone bill.
Why is it called Money Monday? We do it the first Monday of each month but you decide what works best for you, schedule it in and get it done.
- Work With A Cash Flow Report, Otherwise Known As A Budget!
Yes, I know… yawn. Boring. However, a budget is an exceptionally powerful tool to use on your journey to financial security. It is one of the most basic and effective tools for managing your money.
Yet, most people avoid doing it because it is additional work, much like cutting your lawn or fixing the roof. Budgeting also connotes that you have to give up and stop yourself from enjoying stuff.
What budgeting actually does is clearly show you how you allocate your money and present you the choices on what stuff to enjoy – based on your financial limitations. It will save you the grief of overspending and being too much in debt. Budgeting does not stop you from enjoying stuff, it ensures that you enjoy stuff when you want it.
Although budgeting is indeed more work, it pays off with many life-enhancing benefits.
Benefits of budgeting include giving you control over your money, allows you to successfully manage your cash flow and helps you decide in advance how your money will work for you. You should be putting every dollar you earn to work for you. Read our blog on budgeting.
Creating better financial security for yourself means having choices, the freedom to choose. Without choices in life you are restricted and have limited opportunities to live the life you would really like. YOU then choose what to do with your money. Whether it be
- Building a church
- Helping your local community
- Provide for those you love – send kids to better education or involve them in sporting or dance experience, buy your mum a new car, retire your wife
- [Insert whatever you like here]
You can do whatever you like with the money, as it’s your choice. Create the freedom to make the choices in your own life based on whether you would actually LIKE to do something rather than if you can afford it!