Written by: Elena Manole, Executive Contributor
Executive Contributors at Brainz Magazine are handpicked and invited to contribute because of their knowledge and valuable insight within their area of expertise.
One of the ways I work with clients is going through their accounts, one transaction at the time, and questioning each of them.
In a world of online payments, tap and go, and all sorts of subscriptions, it is easy to let pass a 10$ here and there without even realising.
Given the cost of living and the high inflation that we are experiencing globally, we want to maximise the use of our money. And you would be surprised how, by doing this exercise, you will realise there are ways you could save your dollar and make money work for you.
Also, you will learn to balance your spending between various areas of your life. We love giving gifts, buying groceries and having an easy takeaway. But what about a date with yourself? Or maybe a manicure? Some flowers, anyone? Or a movie night.
Here are 7 simple and easy steps to increase your chances of saving your money and paying off any debt you might have. The result? Grow and build your wealth like nobody else!
1. Go through your accounts at least once per month and question each payment
There is a high probability that you will not know what some transactions are. And if you are in a joint partnership that might be even trickier. In this case, involve your partner. Let them help you in finding financial clarity. Identify those transactions that you don’t recognise and/or you don’t need anymore.
2. Take some time in cancelling/getting better offers
Shop around. Chances are, you will find better offers for your electricity, your phone provider and others. If you have a lot of services for your TV, pay attention to what you use the most and cancel everything else. Yes, be brutal about this. Most likely you don’t need that much entertainment. A trip to the library will sort you for one night per week.
3. Start building an emergency fund
Like Dave Ramsey says, “Murphy’s around the corner”. Yes, it all can go well, but, just in case, do yourself a favour and start putting money aside for rainy days. To begin with, $1000 will suffice.
And if you cleared down all the items on number 4, go ahead and save at least 3 to 6 months of (essential) expenses.
4. Write down a list of all your debts
Yes, commercial debts that are “interest free” are also included. It’s important to give back what we owe. There is nothing that creates more abundance in our lives than to be in a position where you can say: I don’t owe anything to anyone.”
Those monthly payments? They are there to stay for years. And, in case you can’t work for a period of time or you want to save for something that is precious to you, these monthly fixed costs will just make your life more difficult.
5. Create a spending plan
Once you have a few months of figures (step 1), you’ll start seeing a pattern in your spending. In that case, you will be able to re-assess the way you use your money. Start by looking at the averages across the three months. How much do you spend on groceries? On transportation? Clothing?
Take the amount you receive per month (salary or dividends, etc) and find what is the 60% of it. Your lifestyle should cost you that. Everything else should go into saving accounts, giving back and putting money aside for your pension.
6. Pay your mortgage (not only the interest)
I see this recurring in my clients’ accounts: they only pay their interest on the mortgage. But, a little goes a long way. Make sure that 25% of your 60% of lifestyle goes in the repayment of your mortgage. It is important that some of your monthly income goes towards the payment of your primary residency. You will thank yourself in the future.
7. Go to the grocery store with a list
Or even better, buy your groceries online. And, if you still go to physical stores, avoid eye level products.
It’s Tuesday evening, your week is full on, and the least thing you want to do is to go back home to your boring pantry. Yes, I hear you. So what do you do?
You leave your house in the morning with some exciting things waiting for you. Because going to the shops on a Tuesday evening while you are tired, probably stressed from a full day of meetings and work, is a full disaster for your bank account. All you want to do is to have a release of that stress. Discipline is not in the equation. You don’t want to even hear someone saying meal prep, shopping list and savings. So, the shop next to your house or on your way home is your saver.
But don’t. You know better, and again, your future self (and your body and wallet) will thank you. Be prepared.
Preparation beats everything else. It’s the best secret for success. And because you are reading this article, I know you are aiming for success. So go on, go online and buy yourself some treats. They will wait for you at home on a Tuesday evening.
If you need help with your finances, you know where to find me. Email me here and let’s have a chat. Your future self will thank you.
Elena Manole, Executive Contributor Brainz Magazine
Elena is a time management and productivity coach. She teaches female entrepreneurs how to bring more balance to their life and structure their days so that their priorities are on top of their list. Her clients thrive on accountability and clarity as well as compassion and gentleness. Elena is a hands-on productivity teacher passionate about all things done in a mindful way. She helps her clients fulfil their deepest visions and desires without sacrificing anything in their life. Today she lives her vision and makes a point to remind herself, and her clients, that living a life based on values means that we don't have to wait for the next goal to be reached in order to be happy and fulfilled.
