Money Management

Financial stress has been around for a very long time! Did you know that money is one of the top 5 reasons for divorce? It is also a contributor to some people who choose suicide.

For many, there just doesn’t seem to be enough, and even the best budgeters can come up against some unexpected changes that throw them off track.  My personal financial history has included lots of great money habits, and also a few poor choices.

So what can we do to improve this important life essential?

The starting point is to know exactly where you are now –
1:(a) list your “liquid assets” (bank and saving account balances), and (b) your “short-term debts” (unpaid bills, credit card debt and any personal loans).
2: (a) write down your income details, and (b) your regular expenses (rent or mortgage payments, groceries, utilities, transport or vehicle costs, clothing, entertainment, etc). You may need to track your spending for a while to assist with this part.

Determine your priorities – what is important to you when it comes to money? You’ll need this to assist when creating a budget.

Make a plan (whether that is to reduce credit card debt or save for something big). Create a budget that is realistic and applicable to your current situation. There’s a great saying: “what gets measured, gets managed”.

Expect the Unexpected. We never know when a toothache requiring a root canal will come along, or when our car needs major maintenance, or when the fridge will break down. Unfortunately people lose their jobs, which was prevalent due to Covid. Having an “emergency” fund somewhere is a great idea to ease the burden of a financial blowout event.

Invest. Save as soon and as often as you can (even if it’s a small amount to begin with), then put that money into a secure way of working for you.
As Robert T. Kiyoski says “pay yourself first”.
Make sure you protect your wealth.

When it comes to debt – look into ways of reducing the interest charges and/or consolidating.
Do you have things that you could sell to help pay it down?

When it comes to purchases and expenses – make sure you’re getting the best prices (think discounts, cheaper options). Look at where you can cut back, perhaps there are things you could make instead of buying.

Remember we have the power of mind to choose.

Most of us need to learn self-control in at least one way, whether that be managing money or something else. Having a goal and an accountability partner will help.

Get in touch with me if you’d like to know more.