To be good with money is something that many people aspire to achieve,
and the good news is that anyone can become good with money.
Of course, being good with money means different things, to different people. Most people would
agree it’s knowing how to save and invest, where to cut costs, having good cash flow,
and managing debt. Others say it’s about always having a backup plan, keeping a good
credit score, or having a plan for retirement. While most people think that managing money is
something that comes naturally, the truth of the matter is that it’s a skill just like any other.
While some people are better at sports than others, the same principle applies with money, you
just need to learn how to handle and manage it. And fortunately for you, there are plenty of tips
that can help you think about money differently, and help you get the most out of your income.
So how about we look into some of them.
In today’s practical wisdom video, I’ll be sharing with you in no order of importance,
nine golden rules of money. And thanks to today’s video sponsor (Establish Titles),
I’ll tell you how you can become a Lord or Lady.
So, to briefly highlight these nine rules/principles,
they are: - Working on your mindset
- Creating a financial plan - Create a budget
- Track your spending - Limit your credit card purchases
- Regularly save - Invest
- Pay down debt - And stay informed and motivated
Now let’s look at the first one.
1. Work on your mindset If you’d like to be good with or get better
at handling your finances, you must be in the headspace to do so. Figuring out how to be good at
saving money always begins with your mindset. One must work on their mindset and empower themselves
mentally to succeed. This could be achieved by keeping a journal, reading books, watching
motivational videos or having a mentor. These are some of the ways to keep your mindset in check.
When it comes to spending money, being conscientious is ultimately rewarding.
In other words, the more money you have from saving, the more ways you get to treat yourself.
This is just one of the benefits.
It’s imperative to start viewing money differently to see changes to your finances.
Think about the things you value most in your life. And
then think about which ones you think, depend on your finances.
Once you start viewing monetary decisions around this, you’re getting much closer
to your financial goals. If you want to get better at managing your money,
you have to keep it at the forefront of your mind. As the saying goes: you become what you think.
2. Create a financial plan It’s much easier to get where you are trying to go
when you have a plan in place. The moment you’ve laid out your goals, you want to create a plan
to achieve them. How are you going to set up an emergency fund, pay off debt, save for retirement
and all the other things you’d like to do with your cash. Determining how much each goal will
cost is a good place to start. After that, figure out how much time you need and then set things up
to start designating funds for each of your goals according to the priority you have assigned them.
Setting goals helps you understand your why for doing something. It gives you
something to work towards, or simply gives you a reason to be better at handling your money.
In the process of setting your goals, remember that you want them to be measurable. The big goals
should be broken down into smaller chunks so that you aren’t overwhelmed by pursuing massive goals.
Before moving on to the next rule, I have a question for you, how would you like to
become an official Lord or Lady? Well, thanks to Establish Titles (today’s video sponsor),
just about anyone can become a Lord or Lady. By purchasing just one square-feet of land you
can officially declare yourself, a Lord or Lady. And since it’s an official document,
you could officially change your name to Lord or Lady, and get it on your Credit card,
plane ticket and so on. Or, you can even get it on your dating profiles.
So, therefore, from today henceforth you can officially call me: Your Lordship.
Alright guys, so, Establish Titles is a project based on a historic Scottish custom where
landowners are referred to as Lairds, or Lords and Ladies in English. Establish Titles allow people
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I think this is a wonderful gift to give to anyone,
or if you just want to call yourself a Lord or Lady, plus it comes with a good cause too.
You see, for every order purchased, one tree is planted. Establish Titles works with global
charities One Tree Planted and Trees for the Future. To preserve the picturesque
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When you purchase your land, you get an official certificate with a crest, and your certificate
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Now let’s move on to the third point.
3. Create a budget Creating and sticking to a
budget is no easy fit, but if you’re serious about getting better with money you need to embrace it.
Your budget is there to help you keep track of your income and spending.
You should aim to spend less than you earn and widen the gap between your income and
your expenses so you can free up some funds to attain your financial goals.
The secret to successful budgeting would be identifying a budgeting method that makes
things easy for you, and one that you like. Many people don’t budget because they don’t
want to go through the whole process of writing down their expenses,
doing all the math, and ensuring everything adds up.
If you have trouble managing your money, the solution isn’t that hard.
All it takes is for you to get your spending on track, and this only takes a few hours
working on your budget each month. Instead of focusing on the process of creating a budget,
focus on the value that budgeting will bring to your life.
Budget management skills are essential for getting the most out of your savings.
Having to constantly think about budgeting helps encourage stronger financial and
lifestyle decisions, enabling you to secure future retirement savings, monthly purchases,
house costs and bill payments more effectively. There’s no time like the
present to start budgeting and good financial skills only work better with commitment.
4. Track your spending Creating a budget isn’t enough.
You need to track your spending. Start tracking your spending to
discover areas where you may be unknowingly overspending.
Small purchases add up quickly and before you know it, you’ve spent more than you’re supposed to.
Tracking your spending involves identifying your expenditures throughout the month.
It’s an essential activity that you should ideally do every day throughout the month.
When you’re working on your budget, it’s important to distinguish between fixed and
variable expenses, to understand how you can make an impact. Revisit fixed expenses like insurance,
your subscriptions and even your mortgage or rent, on an annual basis to see where
you could make a change that could lead to long-term savings. On the other hand, variable
expenses such as dining out and entertainment are easier to control on a monthly basis.
It may seem like a lot of work to itemise your expenses when you first begin,
but understanding why it’s important to track expenses and how to do so with minimal effort
can help you successfully commit the activity and become more aware of your spending.
5. Limit your credit card purchases When you ran out of cash, it’s tempting to turn
to your credit cards without considering whether you can afford them or not. Resist the urge to
use your credit cards for purchases you can’t afford especially on items you don’t really need.
Unless you follow a monthly budget and can easily pay your credit card,
this can be dangerous. By keeping common purchases like groceries and utility bills off
your credit card balance, you’ll take a major step in getting your spending under control.
Delayed gratification goes a long way in helping you get better at handling money. Putting off
large purchases instead of sacrificing more important essentials or putting the purchase on
a credit card, gives you time to evaluate whether the purchase is necessary and more time to compare
prices. So, if you’re thinking about making huge purchases, it’s better to save up first.
By saving up rather than using credit, you avoid paying interest on the purchase. Plus,
if you save rather than skip bills or obligations,
you don’t have to deal with the consequences of missing those bills.
6. Regularly contribute to savings Depositing money into a savings account at the end
of each month helps you build healthy financial habits. You can even set it up so the money is
automatically transferred from your checking account to your savings account. By doing so,
you don’t have to remember to make the transfer, as it will be automatically done.
Automation is one of the easiest ways for you to get better at handling money. Studies show
that people who automate their savings save more than people who don’t. They don’t give themselves
a chance to debate whether they should save or not as a result. The money is automatically
assigned to your savings account, and you don’t have to go through a long process to access it.
Different banks offer different interest rates on savings accounts, look around for one that
is on the higher side of interest rates to get you the best cashback on your account.
Saving money allows you to enjoy greater financial security in life.
If you have cash set aside for emergencies, you have a fallback should the unexpected happen.
Despite the importance of saving money, many of us aren’t following through on it. When it
comes to doing the right thing financially, just knowing you should save isn’t enough.
7. Invest
If you’re trying to find ways to increase your assets, investments are a good way to spend
money wisely. In order to build your wealth, you will want to invest your money. Investing
allows you to put your money in vehicles that have the potential to earn strong returns.
You might not be an experienced investor but there are several simple investment platforms these
days that can offer you more interest on your investments per month than a savings account can.
When done right, investments can help supplement income and they can be a good form of cash flow.
Talk to an investor or fund manager for guidance if you aren’t sure where to put your money.
If you never invest, you’re missing out on opportunities to increase your financial worth.
Of course, you have the potential to lose money in investments,
but if you invest wisely the potential to gain money is higher than if you never invest.
8. Pay down debt Managing debt is an
essential responsibility for good budgeting, and is one of the necessary money management
skills you need for financial independence. When you create a budget to manage debt,
your bill repayments are one of the first things you should factor in.
Before taking on additional debt, make sure you can budget repaying it
including any possible interest that may come with it. Always do your research in
choosing the best personal loan offer for your financial situation. It’s important
to note that once you’ve acquired any debt, you have a fiscal responsibility to repay it.
When you set up a budget, focus on paying off the debt first,
and don’t spend frivolously until you do.
9. Stay motivated with financial podcasts and videos
There are so many ways you can learn to save and invest your money. Educating yourself
consistently on different financial issues helps you be better with money.
The amount of financial content available online is staggering. Along with articles and videos,
there are countless podcasts that are devoted to helping you pay off debt,
invest wisely, and retire comfortably. Topics can range from money basics to
advanced investment strategies and these podcasts can be formatted in a variety of ways.
Listening to financial podcasts regularly and watching videos motivates you to
achieve your financial goals. When you listen to others who have been able to
overcome their financial struggles, you soon realise you can do it too.
Having excellent money skills will greatly improve your quality of life, present and
future. Being able to focus specifically on spending habits can help you manage your debt,
deal with outstanding credit card debt payments, and increase your retirement account tremendously.
When you create a budget you’ll get a better understanding of why being wise with money
makes such a big difference in your daily life.