Wrestling the beast of your financial stresses is not as impossible a task as you may fear! This overview will give you the answers you are looking for and get you on the right path.
What Do You Want? and How Much Is It?
You need to figure out what you want your life to look like. You need to create goals with the answers you come up with to the following questions:
- What are your personal values?
- What are your unique goals?
- What are your business values?
- What do your business goals look like?
Create short-, intermediate-, and long-term answers for questions 2 and 4 and then start applying monetary equations to these. If you want to open a bookstore, find out how much you would need to start.
If it is $10 000, for example, start breaking this up into something doable so you can set money aside each month after your living expenses have been met in a meaningful way. As vague as this approach may initially seem, if you don’t have a crystal-clear picture of what you need to be doing to get where you’re going to go, it’s unlikely you’ll make any move at all.
Get Better at Earning
Now you know how much you need, so the next task to tackle is how you are going to get it. Think about how well you are doing from your current occupation and work out ways to supplement it. Are you lucky when it comes to betting? If so, play now and put your winnings in a savings account. Can you edit, proofread, or write?
Find side hustle jobs that you can do for once-off payments online. Babysitting is another option, selling clothes and furniture you do not need is another. There is a world of ways to make money, you have just got to tap into it.
Setup Your Savings
Your first goal is an emergency fund. This is an amount that will cover you for between three and six months without working. Budget for this before you anything else.
Next, you will need a high-yield savings account and it is recommended that you keep this separate from the rest of your money to the point where it is at a different bank. This helps you protect yourself from yourself, creating a boundary that is not that easy to cross.
The trick here is to get out of your own way. If you can set up an automatic monthly transfer, do that. Aim to save at least 10% of what you are earning and think of it as paying your future self. Add any extra wins or bonuses to the account along the way too. Even if you are paying other debt, cut down where you can in terms of your frequent expenses and put that money in your Future Self account. You even six months from now will be a grateful person smack bang on their way to their dreams coming true.
Being in perpetual debt is hard. Saving everything you can is hard. Choose which one you are going to deal with. Life is not easy, but you get to pick your battles. Start fighting the good fight and watch your world utterly transformed.