Money is meant to support and serve you.
Money is meant to make you to feel safe, provide for your needs, enable you to do and have the things that make life joyful and do the “heavy lifting” – a.k.a earning the income – when you no longer feel like it.
If that thought seems more LaLaLand than Ryan Gosling and Emma Stone and you feel more like a slave to money instead of its master, then read on and discover 5 ways to make your finances stronger and claim back your power around money stuff.
- GET YOUR FINANCIAL FIREMEN READY TO CATCH YOU
Life happens and with it comes “to be expected, unexpected events” often with nasty little price tags attached. The washing machine implodes; your car splutters to a standstill; your fur-kid has a medical emergency …
Having an emergency fund in place to deal with these events ensures the impact is contained and doesn’t ripple out across your finances derailing your savings and investments or causing you to go into debt; all of which have significantly bigger long term costs.
An emergency fund is a lump of cash (aim for £800, US$1 000, €900, R10 000) that sits in it’s own account waiting to be called upon in a real emergency. (Having more month than money isn’t an emergency – that’s just poor planning – see point 4). Your emergency fund is your personal financial fire station. Most of the time your money will be playing table tennis or spinning down a pole doing nothing much except being ready to save you when you need it most.
- SHED THE BAGGAGE – LIGHTEN YOUR LOAD
Excess financial baggage weighs you down, sucks the joy from day to day living, makes achieving financial freedom tougher and increases your vulnerability to financial disaster.
Financial baggage is any financial commitment you made in the past which now costs you every month. This comes in various forms – subscriptions and memberships (i.e. cell phone contracts, gym); service contracts and insurances; emotional money commitments (helping out parents or adult kids) and lifestyle choice contracts (i.e. rent, mortgages and consumer debt).
Have a baggage shedding date with yourself by diving into your bank account/s and seeing what money has exited from your life in the past three months. Look at each expense and ask yourself “Do I get massive value from this and does it bring me joy?. If it is a no to either, then cut it out of your life immediately.
Each bit of financial baggage you shed creates a double positive impact to your financial strength. The lighter your cost of living is, the fewer assets you need to be financially free and the less you have to spend on expenses means you have more to put into your saving and investments accelerating the build up of your assets.
- SEND CONSUMER DEBT A DEAR JOHNNY
Consumer debt is pure kryptonite to your financial strength.
If you owe anything on credit cards, overdrafts, store loans/cards, car loans, bank loans, etc, you are in a disastrous, depleting money relationship with the lender – a relationship that is always bad for you and needs to be terminated.
Every bit of consumer debt you break up with and eliminate from your life will make you stronger.
If you have consumer debt in your life commit to clearing it from your life forever.
- BE A MONEY BOSS
Sadly most money flounders around in the dark with no clue as to what you want from it and ends up drifting on to somewhere and someone else because you haven’t given it attention and bossed it around.
You get financially stronger every time you tell your money what you want from it.
That means taking responsibility for your own financial wellbeing, getting clear on what is really important to you and giving your money clear instructions as to where it needs to go and what it needs to do both now and for your future.
You tell your money this by having a clear spending plan, identifying what money is going where and what value you expect in return. This includes the money that goes into your savings for future expenses and to buying assets to create your financial freedom.
- PLANT A FREEDOM SEED EVERY MONTH
Your financial freedom is secured by a forest of assets which earn money for you to live the lifestyle you want without you having to work. This is made up of investments in the stock market, investment property or businesses which grow in value and produce income which you live off.
You become financially stronger when you make your financial safety, wellbeing and financially free future the most important bill you pay each and every month. The bill you pay is to buy investments which grow in value and with time become your freedom forest.
The good news is that investing is much simpler than we have been led to believe, quality investments are very affordable and accessible and you can automate the whole asset buying, planting and growing process putting your freedom on autopilot.
Let me know in the comments below:
How many of these 5 actions are you already implementing in your life and which new one will you add into your life to keep moving towards your freedom where your money stuff is more than strong enough to hold all of you and your desires?
Get that money working hard – I promise you it want it 😉
To find out more about Passive Investing and How to Invest In Index Trackers Simple, Effectively and Safely– Join Nerina Visser and me, Ann Wilson – The Wealth Chef, for a special FREE “Passive Investing 101”Masterclass.