I’m so fed up of living pay cheque to pay cheque. It’s time to break those bad money habits and get back on track for a positive rich life. Some of these strategies have already do and some are brand new and will hopefully be the difference to living that rich life that we all deserve.
Clear debt
The first step in any financial plan should be to focus on clearing debt, whether that be a hire purchase loan, overdraft or credit card. Start paying off the highest interest rate debt first. You could do this a number of ways – by paying any spare cash over to the debt, as well as by decluttering and selling items that you don’t need, don’t fit or don’t use. The freedom of clearing all debt is beyond amazing.
Focus on what you can control
To help pay of this debt, you need to look at the finances you can control. This includes what you earn and what you spend. Think about ways of being able to earn additional income to boost that side of your finances. With your spend, you need to look at your budget and see what is coming out. Cancel any subscriptions that you don’t use or need. Cut spending on frivolous things such as clothing or meals out. Reduce your spend as much as possible. Check that you are on the best deal for you energy and broadband, etc. Ensure that you are spending less than you are earning.
Invest in yourself
It’s time to spend a little money in the right way. This could be in the form of a training course, for education, anything that will give you the opportunity to upskill. By doing so you are then increasing your earning opportunities. Knowledge is power.
Meal plan
I swear by meal planning as a way to gain control of the food budget. Without meal planning I can go from my usual £70 a week to well over £100. Knowing exactly what you are going to eat means you can shop with a list. The next challenge is to stick to that list in the shop and not deviate! Schedule in batch cooking as well to ensure that you are reducing costs this way also.
Educate yourself on money and finances
Learning about money, may sound boring, but it doesn’t have to be. I have been listening to some amazing and inspiring podcasts. I will teach you to be rich by Ramit Sethi and Diary of a CEO by Steven Bartlett (this is a range of topics, but sometimes financial and health related too). Educating yourself about money means that you will be able to make the best financial decisions for you. Whether that means learning about investing or knowing how to shop around for good savings accounts. Another amazing resource is moneysaving expert.com. Martin Lewis shares fantastic money tips on every topic you can think of. Go check out his website.
Set financial goals
Knowing how you want to move forward with your money is a great motivator. Set goals about clearing debt, saving money or investing. What is your ultimate financial position and what do you want your rich life to look like?
Save each month
Automatically saving a small amount each month should be a given. You first should save to create sinking funds. These can cover a range of things, such as birthday gifts, Christmas gifts, your car or house. It’s a pot of money that is easily accessible should you need it for that category. Many financial advisors suggest saving between 3 and 6 months’ worth of income to be able to cover your bills in an emergency. Start putting money aside as you never know when this might be needed.
Invest each month
Investing is a risk game, so do this with caution. And absolutely research and educate yourself on this. But having some kind of investment plan is equally as good for the poor as it is for the rich. Don’t assume you don’t have access to this. In its basic for there are stocks and shares ISAs that allow you to choose your risk level from low to high, with an aim of yielding up to 15% return on your investment. Investing money for the future is more important that you realise and the best way to improve your wealth.
Leave a comment below with your commitment to breaking free from being poor.
Rachel, Declutter Your Life X
For more information check out my youtube channel https://www.youtube.com/c/RachelNoakes
For more information, check out this post: https://declutteryourlife.co.uk/decluttering/november-little-acts-of-decluttering/
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