You’ve heard it before: “Failure to plan is planning to fail,” but you’ve rolled your eyes and just kept “going with the flow” hoping the tides will flow that money tree right into your back yard so you can finally start living the life you’ve always dreamed about…or at least be able to take a day or two off work when you’re sick without having to stress about how the bills would get paid if you did.
Well, roll those eyes no more because these four tried and true goals are going to help you direct the flow – and the cash – right into your bank account where it belongs!
So grab your pen and paper, write out your dreams and goals, and let’s start planning to succeed!
1. Make more, spend the same. Stay with me here. You’ve already got your budget set up for the salary or monthly income you currently bring home, right? (If not, check out this quick read for easy ways to gear up for your personalized spending plan.) Well, most everyone gets a raise or bonus at least once a year. When that glorious times comes around and you’re done doing the happy dance and mentally spending the increase on your first impulse buy, instead give this a whirl: put the amount of your raise or bonus in a savings account and stick to your budget as if you hadn’t gotten a raise at all. It may seem insignificant at first, but give it time. If you have the yearly windfall deposited straight into a savings account and don’t peek at it for a few months, you’ll be pleasantly surprised at the new bottom line!
2. Call in the Pickers. Have you ever seen the show American Pickers? They travel around the country looking through “stuff” people have amassed over the years. If you’re like most people you love to buy but don’t necessarily need the “stuff” you’ve bought. If you REALLY love to buy then you more than likely don’t have room to keep all your “stuff,” so spending money on a storage unit or eventually a bigger house will become necessary and begin to subtly eat away at your finances.
Taking inventory of the “why behind the buy” is a great first step to helping you reach your financial goals. If the item you’re about to purchase is a want versus a need, put the money you would have spent on the want in the bank instead. Then ride the rush of that good feeling all the way the “room of stuff” and decide what you’re going to sell and what you’re going to donate. After that…yep, you guessed it: put that money in the bank too. Not only are you decluttering your home, you’re also decluttering your head of a less than healthy money mindset and habits.
3. Ask questions. Call your cable, phone and insurance companies, and any other providers you pay monthly, and ask them of ways you can reduce your bills. If you see a competitor offers a lower price, call up yours and ask them how they can match or beat the lower rate. With insurance you’re more than likely paying for coverage above the minimum requirements. Have the talk with your agent to find ways you can decrease your bill without decreasing your peace of mind.
4. Pay off all your credit cards. This is non-negotiable. The amount you pay in interest alone each month is enough to keep you sobbing in a corner for days. There are a number of easy yet potentially uncomfortable methods to lowering and eliminate your credit card debt, starting with paying off the one with the highest interest first. You can read up on other tricks and hacks here.
While these four tips may not all necessarily be goals in and of themselves, they can certainly help get more money in your accounts which in turn gets you closer to realizing your financial goals and living your dreams.
If you could use a little extra clarity on what goals to set or support in reaching the ones you’ve already committed to, reach out to me here. I didn’t get to be an expert in the world of finances by luck – I’ve learned the hard way so you don’t have to.