Three Important Tips to fixing your Money Problems

Money problems usually starts small, then slowly spread like a violent wave, eager to sink your life down the rabbit hole.

Your debts spiral out of control. Your monthly income can no longer support your lifestyle and you begin to wonder: How did it get to this?

Well, the answers are not too far from your reach if you care to look closely enough.

Two things: it’s either because you’re not making enough money, or mismanaging the income that comes into your hand.

Uhn uhn! It’s really that simple.

Everyone of us knows when we’re not making as much money as we should. In the case of money management however, it’s not always the easiest thing to figure out. A lot of people find it much easier to live in denial.

Whichever group you belong, here’s some great news for you: you can live a life that’s free of money problems.

Is that even possible?

Absolutely!

As long as you apply the following tricks in your tool box. You’re good to go.

Hold yourself accountable for your spending

Do you really need that diamond watch? Is it really necessary to get that new car when you can’t afford to maintain it? Can you pay for it without feeling a dent in your wallet? If you can, great! But if you have to think twice about it, it’s probably not a good idea.

More money doesn’t always solve money problems. If you don’t curb your spending habits, you’ll only discover that it won’t matter how much you make- or have- you’ll spend it all in just about the same time.

Read about money!

A lot of people don’t want to have the money conversation. It’s so scary to talk about it, so scary that you get a financial adviser to make most of the important decisions or you ignore it altogether and live life as you go.

But this isn’t the best option.

A great number of people suffer because they didn’t get the right financial orientation growing up.

Financial literacy is not taught in school- as it should be- but you have a choice to keep living that way or you can change the narrative for better by educating yourself.

It’s really important that you know why a stock or bond is the best option for you; why you should or should not enroll in your company’s pension scheme.

Pick up a book on investment. Read! Be informed! Are you too busy? Listen to a podcast while you drive to and from work. There’s literally no excuse.

No one tells you this, but honestly, financial literacy is going to be the best education you ever get.

Work a budget

It’s time to identify the source of the problem. Bring out a pen and your notepad and scribble down all of your monthly expenses.

  • Housing
  • Insurance
  • Utilities
  • Transportation e.t.c.

Don’t leave anything out.

Done? Now, grab your calculator and add it all up.

Does the total surprise you? Does it cause your heart to thump heavily in your throat? 

Calm down! Take a stroll around the room before you come back to the table!

Once you’re settled enough, calculate what percentage of your monthly income your expenses sum up to?

Looking good? Or is in the 50% of your income range? 70%? Maybe 80%?

Don’t panic!

If it’s anything above 60%, take this next step as quickly as you can.

Take a look at that page on your notepad. Are there some things you can cancel out?

Most often, some of those things will appear indispensable, but really, they’re not. Show no mercy. Cancel them out- twice if you can.

“But I need a new pair of sneakers every month. I need to change my wardrobe.”

Well, if you really want those things, you have just one option and that is to increase your income stream, to make it wide enough to accommodate your lifestyle.

“But just how do I do that?” You ask.

That’s a lesson for another day.

Be here next week and you might just be richer than Jeff Bezos before the end of July.

Okay, maybe not that rich, but you get the idea.

Till then, cheers!

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