Wealth means different things to different people and there can be misconceptions around wealth. There are some people who think wealth is only money and if they
had more than enough of it, then they would be happy and without problems! There are other people who believe that money only goes to money and if you are not born rich then, you’ll never be rich. Then there are some who think that the way to gain riches and in their mind become wealthy is to win on the lottery, others believe only those who start out rich, can amass wealth. Then there
are those who wish for wealth assuming the only way to obtain riches is by winning the lottery, having a BIG win on the horses or some other lucky’ break.
What these people are not currently seeing is that we are all in control of our own financial destiny. By taking responsibility for our own monetary status then we can all create financial equilibrium, stability and then ultimately freedom, if we are consistent and focused in our actions. J
For the majority, due to the lack of financial, investment and money management education given to young people at this time, most people will have to plan and work towards financial stability. A strategy or plan, focused action and at times discipline will be needed to reach that goal.
Your current financial situation is not important, what is important is that you start to do something about improving it
How can I improve my financial situation?
Step One – Decide to do things differently to get a different result! Promise yourself, write a commitment, pledge to others –whatever, just decide that whatever it takes you are going to do things differently and follow ‘the plan’.
Before you create your ‘plan’ you should really know where you are financially.
Create a Budget Sheet and log your monthly incomings and outgoings, be vigilant, take time to do this properly, this is a very important step. Make sure that you enter every monetary transaction in and out! Once you know whether you are in the red or the black at the end of the month, then you will be in a position to make a plan.
(Working with waystowealth.co.uk we can assist you with this and have templates to work
If you have a deficit at the end of the month, check what you can cut back on, coffees? Lunches? Old insurances? Etc.
You may have to get stern for a month or so and really pull in the purse strings, remember – WHY- you are doing it!
Moving your Money Around
Once you have a money plan, the next step is to set up your payments, deposits and savings to be automated. Once this is in place the money goes in/out and you do not have to think about it or be responsible for its fluidityJ.
Organizing this simple step can assist you to become wealthy much faster as you no longer have to make financial decisions regularly. Leaving you to concentrate on the money that’s left!
Arrange for direct payments to insurances, utilities, rent, saving accounts, loans, etc to leave your account, as soon as the money come in . Doing this will improve your money management skills as it limits your direct access to the money, meaning that its use is focused and you will not have the opportunity to be able to waste it.
Remember: Include automated payments for your future security, like a property investment fund, for instance.
Taking the time and effort to set up automated finances at the beginning will greatly assist you in steadily growing your wealth over time.
What to do with the pot?
Once you get yourself into the position where you have more money left at the end of the month instead of the other way aroundJ. You can then revise your plans, with your new mind-set and behaviours.
Always ask yourself:
Who can support me now to build my pot further?
What do I need to learn now to become even wealthier?
Who can I joint venture with or mentee with to gain more financial success?
Wealth building is an ongoing journey, it can be made an easier path if you have the right team around you to help, guide and support you