Reset your financial wellness, protect your finances and change your family's future
Financial security doesn’t mean living a life of self-deprivation either; it’s about managing your money effectively to ensure that your future is financially stable. Not sure where to start?
Here are seven healthy financial habits to start honing today:
1. LIVE FRUGALLY
People have a tendency to live above their means, and you probably already know that you need to reduce your living expenses – even live frugally. If you wrote down everything you spent in a month, you would find many areas in which you could save. Those Thursday after-work drinks session, for example, wouldn't cost nearly as much if you limited your drinks to just a few. At first your friends might accuse you of being a lightweight, but they might also wisen up when it's clear that you're the only with any money left to spend at the end of the month.
7. AUTOMATE SAVING & PAYING BILLS
The best way to ensure that you are saving every month is to automate transfers into your savings accounts once your salary comes in. And choose an inflation-beating interest rate or rate of return saving account.
Much like with savings, by automating your payments as debit orders at the start of every month, you can ensure that your bills are paid for before you’re tempted to use that money elsewhere.
WHY A MONEY COACH?
A coach tells you the hard but important truths about money. Your money. So you can commit and take action in order to use your money to get the life you want and deserve.
It makes your accountable to what you said was important to you, your family and your future.
Your coach will co-create your 1Financial Life Plan with you. And include your Debt Snow Ball, set up and understand your key numbers, and your current and future Balance Sheet, which is where you create wealth.
NOW IS THE BEST TIME TO START.
YOUR FUTURE SELF IS WAITING.
TAKE ACTION, SCHEDULE YOUR FREE CALL.
2. SPENDING PLAN FOR BOTH THE SHORT AND LONG TERM
Planning how to spend your money is a vital skill if you are working towards financial security. Learn how to create a Spending Plan based on your earnings and expenses, and practice the self-discipline needed to stick to your plan. The very first thing we recommend you do, is start an Emergency Fund, which should be between 3 -6 month's living expenses.
Make a list of expenses for a year, or even further into the future. Prioritise these and assign them to months.
We recommend paying yourself first, but only after you have tithed 10%, to the church where you have chosen to partner with. After which you transferr savings and investments into separate accounts.
3. AVOID UNNECESSARY DEBT
Debt is something that has to be approached with caution and common sense. It’s foolish to use borrowed money to finance a lifestyle you can’t afford.
Loans can be used to pay for emergencies, although you setup your Emergency Fund , you won't need to.
Try and set yourself savings goals for activities, events and purchases, including studies. This will help you stay out of consumer debt, and help you exercise and grow your financial discipline muscle.
4. INVEST IN YOURSELF
Your income is your greatest asset, and anything that you can do to increase your value to your current employer and prospective employers (or yourself if you are self-employed) is money well spent.
You should also start exploring the idea of starting a side-hustle, and developing skills related to becoming a business owner and investor. And in the Next Normal world of Covid-19, you can have clients anywhere in the world, and earn foreign currency.
5. SAVING FOR THE FUTURE
Saving for your and your family’s future is something you need to start doing today. But you also need to ensure that saving for your children’s education doesn’t come at a cost to your retirement savings. Although your children’s future is a priority, ensuring that you are financially stable in the retirement is even more important.
6. KEEP UP WITH REPAYMENTS
It can be difficult to keep up with repayments on mulitple loans, but it's very important that you make all your repayments on time. Paying late or missing payments can have a negative affect on your credit score and increase your cost of credit.