Financial security—two words that should, but don’t always, go together. Let’s change that.
When you’re safely in the realms of financial security, you feel empowered and motivated to tackle the rest of your life with a clear mind. Nothing sucks the joy out of life like financial struggles or the fear of not having enough. Luckily, there are a few steps you can take to ensure financial woes are a thing of the past. Here are just 7 of them.
- Reduce your top 3 expenses. The easiest way to have more money is to spend less of it. And where are people spending the most money? Transportation, shelter, and food. These 3 expenses are all necessities, but that doesn’t mean they can’t be managed. Some simple ideas to reduce spending are:
- House Hack. Buy a home. Rent out other bedrooms to your friends. They’ll help you build equity and will likely pay less rent than for a similar space. Win-win.
- Rent your space temporarily. The advent of businesses like Air Bnb has made turning your living space into an extra revenue stream easier than ever. If you’re gone lots of weekends or have some extra room, consider renting it out and making some moola.
- Think about refinancing your mortgage if the rates are much lower now than when you bought and you plan to live there a while.
- Walk more. If your errand is only a few blocks away, skip the car and take a stroll. Bonus points if you pop a podcast in on the way.
- Carpool. It might sound silly, but anytime you can snag a ride with a friend instead of driving separate, is an opportunity to save cash and help the environment.
- Manage utility use. You might not have control over your rent or mortgage payment, but you can control your utility usage: turn lights off whenever you’re not in the room, don’t run the water if you’re not using it (brushing teeth, “warming up the shower,” etc.), and unplug electronics, etc. How about cable? That’s one utility you can disconnect, not miss, and save a ton.
- You’ve heard it before a thousand times—if you’re not tracking your income and expenses, you have no idea where your money is going. Make a budget, track it, and stick to it. You’ll thank yourself later.
- Cut ties with your subscriptions, but add one to keep first—Truebill. Truebill shows all of your subscriptions negotiates for lower bills, and more for a small monthly payment. I’m sure we’d all love lower bills, but would dread calling customer service for a deal—they’ll take care of that for you. The catch? They keep a percentage of the savings you see from your first bill cycle. Win-win.
- Think before you buy, especially for large purchases. When’s the last time you impulsively bought something thinking, “I’ll definitely use this!” but didn’t? It happens to the best of us. This unnecessary spending can really make a dent in your wallet (if not a big gaping hole). But it doesn’t have to. Next time you’re shopping, do the following:
- Make a list. If it’s not on your list, you probably don’t need it.
- Ask yourself these 3 questions: “Why do I want this?” “Will I need to sacrifice something else to afford this?” “Can I get a better deal somewhere else?”
- Sleep on it. See something you really want that’s not on your list? Go home, go to bed, and if you still want it just as much in the morning—go ahead and buy it.
- Be intentional. Don’t just spend money because you can, spend money for a purpose—buy things that will improve your life or the lives of others.
- Consistently increase savings. When it comes to saving money, starting small is the name of the game. A great way to make saving a habit is by automatically depositing a percentage of your income into savings or investing, then upping that percentage every year. How much you increase is up to you. It could be 5%, 10%, or based on how much your income increased. The point is to make it automatic and always be looking for ways to save more.
- Spend on experiences. Whether it’s a $20 local show, a trip overseas, or a day at the spa—be sure to budget for truly living and enjoying the life you’ve worked so hard to build, while you still can. You’ll rarely regret spending cash on an experience, especially if it brings joy to your life. And what’s life if you’re not taking time to enjoy it?
- Work Hard and Invest Now. There’s no time like the present. The sooner you invest your money, the more it will compound—generating interest and growing immensely. $1,000 invested today is worth way more than $1,000 invested next year. Use time to your advantage and make moves now.
- Invest in Yourself. That’s right, I’m telling you to be selfish. Focus on yourself. You should regularly spend money on your most important asset—YOU. This means investing in personal development (courses, books, going back to school), taking care of your body (gym membership, regular chiropractic appointments, massages), and loving on your mind (meditation classes, yoga, therapy). Why? Because the day you stop investing in yourself is the day you stop growing.
- Diversify Income Streams. More income streams usually mean more money. Entrepreneurship may not be for you, but there are always ways to monetize your passions—if that brings you joy. You could:
- Walk dogs
- Offer marketing services
- Own real estate property
- Open an Etsy shop
- Become a consultant
If you haven’t yet, I suggest reading Rich Dad Poor Dad. Once you understand which quadrant you fit in, you can decide how you want to shift into another one or add one to the mix.
Each of these 7 steps can be taken today, and most of them from the comfort of your own home—or wherever you’re reading this. That means, if you’re serious about finding financial security and feeling empowered with your money, there’s nothing holding you back.
Considering investing in real estate or interested in learning more ways to build wealth? I’d love to talk and share my knowledge—give me a call or text today.
Talk soon and happy wealth building,