I am so passionate about money management. How you manage you finances matters more than acquiring the additional. Why?! If you don't properly handle current income, chances are, you will make the same choices with an increase of funds; keeping you at survive vs. thrive!
In my late teens, early twenties, I didn't make the most spectacular choices. Inheriting bad credit also made me feel hopeless in gaining a handle on my finances. A couple of catastrophic moment scared me straight and I invested the time and effort into getting on track. Mismanagement of funds accounted for a lot of that. My forever/continuous goal for our finances: Make more and keep monthly expenses the same (or as close as possible)! We've recently moved into a new home, more than double the size and cleared out debt beyond our mortgage. #GodisGreat How much of an increase was it to our monthly expenses? Drumroll: We are saving $5, ha, ha!! I know, I am dramatic!
Yes, it is possible. Yes, you should do your due diligence and make your money work for you in the simplest way, which is: continue to ensure you are maximizing its use. It might not be the easiest to create new funds for everyone, so figuring out how to make what you have work more efficiently may be your only option (and its a valuable tool because you will forever manage your money effectively once you make this change.). Our monthly expenses have been in the same neighborhood since 2013! Yes, 2013! Same output, greater input!
6 month check-in
I’ve said it before and I’ll say it again: Check in with your bills every six months. Often times, there are promotions and additional savings you can get by changing a plan or getting on a new plan. Did you know that if you rewrite your insurance policy, you can often save $200 or more monthly? Like most things, insurance policies age. As they get older, they increase in cost; even if you are a good driver. Lessening your monthly expenses in one area allows you to utilize your funds in another area. I call it “moving money”.
Even when things seems like there’s a drought, you can still win! Often times, our negative outlook controls and dictates how we handle our daily task as well as our finances. Things that you have to do in the meantime may not always remain the same. Make plans as if you have already received the increase that you desire. Create a game plan with the finances that you currently have and put it in place. This allows that same plan to be followed as the money increases. A goal without a plan is a goal will likely be unattained. So, make a plan and watch it come to fruition!
Make money moves
What you spend your money on now, may just be what is going to yield you progress/success later. Make conscious choices when you are purchasing real estate, automobiles and anything else that appreciates or depreciates over time. When you buy, you always want to think about selling; even if you have no intent to sell. This keep you out of an emotional state of thinking. Put on your investor hat. An investor is someone who is always after a continuous profit.
Creating a plan that initiates a snowball effect when it comes to creditors, credit cards and revolving accounts, is the best way to alleviate unnecessary expenses. You always want to start with the smallest debts first. It will report as an account paid in full; which is a better course of action than just paying a lump sum on an account and it will still remaining with a balance (granted all accounts are in good standing).This is big: use discretionary measures when it comes to your finances and helping others. You cannot aid someone else from an empty well. Make sure that you are handling all that concerns you first and then help where is needed if you decide to extend yourself.
Yesterday, the hubs elevated and we have received yet another increase!! He is an amazing BLACK man in the top 10% of corporate Atlanta (bragging on my guy!) Whoop, whoop!!! (I share this because we should always be reminded that IT IS POSSIBLE.) How are we about to spend this money????!! WE AREN’T. We're about to continue being regular and being good stewards that get better with time! ha, ha!
Spend your energy (and money) growing and evolving! Not trying to keep up with visuals of prosperity that you see socially. YOU CAN do amazing things! Your finances WILL grow and become beautiful as you properly manage them! Once you work to a comfortable place, you can then learn to invest, educate yourself on passive income and/or create a savings plan with a bigger yield; we must first get out of survival mode. However you make the change, just do it! You'll be so proud you did! Your start doesn't have to be how it ends. Strive for the continuance of greater!