Money: How can you make the most of the money you earn?

You do earn money in your job, so you just need to keep hold of it. If you implement some of these strategies, you will give yourself more choices about the work that you do and the life you lead.

If you take action to control your money, you will find more opportunity to enjoy your life and your job.

You can invest in self development, perhaps towards a different career altogether. If you have some extra money, you can pay off some debt so you don’t feel trapped where you are now. You will feel there is hope that you will make it out of the situation you are in now.

The money you earn can be used to leverage yourself out of your situation and into opportunities you cannot yet even conceive.

Here are some initial steps.  

Assess: What are your finances like now? 

Be honest! You are only trying to fool yourself if you exaggerate any of the figures or reduce your debt levels on paper.

Give yourself a financial health-check.

·         How many days/weeks/months could you live with your present lifestyle if you had to stop work tomorrow?

·         How much have you saved for emergencies?

·         What is the value of your assets? (what you own e.g. house, car, investments

·         How much is your total debt? (what you owe other people e.g. mortgage, personal loan, car finance)

·         What are you worth? (total assets – total debt)

·         What is your income every month? Are you dependent on your job, your spouse, or the government for this income?

·         What are your expenses every month?

·         What are you left with every month? (income – expenses)

·         How much do you invest every month?

 

Assess: What do you want financially?

 

People don’t usually think too much about what they want financially because it seems obvious! They want enough money to fund their lifestyle and buy the things they want. They want to be able to pay the bills, keep the family happy and have a holiday every year. But have you ever written down what you want financially for the rest of your life?

Have you thought about what you want in retirement? Or if you want to be financially independent before then, how much would you need to accomplish that?

·         What do you want your life to be like in the future?

·         How much money will you need to live that life?

·         How far are you away from when you want to retire?

·         How much money do you need to save/invest  to have a great lifestyle when you retire?

You need to be specific with the numbers and make it tangible, as these are the first steps towards your financial plan. A good start is to see a professional financial planner who will help you with your financial goals and the practicalities of how to achieve them. It may cost you some money now, but in my experience, it will make you a lot more in the long run!

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