How To Dramatically Improve Your Finances Quickly
Why do we want money? No seriously, think about it.
It is not the paper itself, is it? It is the energy we give it.
Let's break it down.
It is not the money we want; it is the feelings we get when we can do the things that money allows.
Let's go deeper.
For some money may mean freedom.
For others, it may mean power.
For someone else, it could mean safety.
Whatever it means to you, money is energy. If you want to know more about money mindset then these posts 'Money Management Tips To Attract Money', '3 Things You Need To Know About Money (Mindset)' and 'Choosing The Right Accountant Will Help Your Money Mindset' are a must read. So, money does play a very big part in all of our lives. But today we are going to talk more about the logistics of money. More specifically, 7 ways to improve your finances.
Be Clear With Your Financial Goals
Set clear financial goals. Are you just saving 'because it's good to save' or are you saving with purpose, with a goal in mind, are you working to a clear figure? Set an actual number and a goal date, be specific as you can. Not only help from a mindset point of view, but it will also be easier to break down. Which leads me to the next point.
Be Mindful When It Comes To Spending
When you come to spending, ensure you are present in the moment. We love that it is so easy to pay for things these days, we are talking secure one-click checkout on Amazon and cardless and cashless apps on our phones which allow one-touch pay. But due to the ease and convenience, we are so often paying for things without really registering that we have purchased them. It is almost like being drunk and spending, you spend money on things you do not need with little recognition. So make a point of every time you spend, being aware of your purchases.
Set the Alarm For Your Money Minute.
Mindfully spending is a start, but where you really get an idea of your spending is by spending a minute every day, looking over the last 24 hours purchases. Was it a good purchase? Was it worth it?
Create A Purchase List
A purchase list is a great way to train your mind out of a mindless spending habit. Trello is incredible for this, but you can just use a page within your journal. The way it works is before you go to buy something, pop it on the list, then enforce a cooling off period. After the cooling off period, you can access whether this is something you want or whether it is not where you want to invest your money in. The cooling off period is up to you; it can be a few days, a week, a month, whatever feels right to you. It may also depend on the size of the purchase.
Do Not Stick Your Head in the Sand
I know you have probably read this point a million times over, but that is because it is a very valid point to make. Please do not stick your head in the sand, regardless of whether this is a personal or business matter. Track your expenses and know the purposes for those expenses. Open the bills, pay the bills, set up automatic payments. This is why we love Xero and ReceiptBank and our other tools, they allow you to know where you are at in a couple of taps. At any given point in time, you should know all of your outgoings from a business point of view and a personal point of view. Ensure all expenses align with your values and goals.
Respect Your Money
As we mentioned, money is energy, and you need to respect it. Part of that respect is not wasting your money so make sure you do not have any leaks. Are you getting the best price for your water and heating, are you paying for subscriptions twice (when someone did this with us before they were paying for the same software from two different accounts)?
How To Get Over The Whole, Shall I Spend, Save or Splurge Thing...
Mastering this idea comes down to organisation and rituals.
70% of your money should go on bills.
10% should go towards some type of spending goal
10% should be spent on you, having fun, whatever that means to you.
10% should go to a charitable cause, and this will also help you realise, the more you earn, the more you can help others.
Of course, if there is money left over after paying the bills, then you can then choose what to do with it. But this general rule removes the how can I 'save, spend an splurge' all at the same time.
If you have any questions about personal or business financial management, let us know and get in contact here, or if you are feeling something a little less formal drop us a dm on Instagram. Remember there is always a way to improve, consistency and habit is the best way to do this.
About the author
Chloe Slade is the Marketing Manager here at Cone and focuses on creating content that brings business and lifestyle together. Chloe is a keen makeup lover, foodie and loves to work from luxurious destinations.