1.Spend less than you make
Guys, this is not rocket science. Spend less than you earn. How else can you really reach your financial goals if you have debt down your throat? Debt is a slippery slope guys, it’s harder to start from negative than at zero. If you do have debt, work at paying it off like your life depended on it. You have to get aggressive with it. Credit is just too expensive. Find ways to earn extra money to get out of debt, work two jobs if you have to, just get out of debt. Start saving, move to investing and set yourself some solid financial goals and smash them.
2. Know where your money is going
I’ve said before, when it comes to money, ignorance is not bliss. You have to know where your money is going, you work too hard not to know. Draw up your budget and by all means, try and stick to it. I use the app 22Seven to track my spending together with my personalised spreadsheets ( I know, I’m old school like that). Think of your budget as a powerful tool giving your every Rand its purpose. Give your money purpose.
3. Pay yourself first
Paying yourself first makes working hard worth it. You work 5 days a week, 8am to 4pm, you take work home and do overtime, you pay everyone else at the end of the month and you come last?! NO!! You have to pay yourself first. Either save or invest a percantage or a fixed amount every month to reach your financial goals, but commit to it. And make sure you AUTOMATE.
4. Learn the art of complaining
Banks, creditors and lenders are more likely to listen to you complain/negotiate with them when you are in the green! That is why it is so important to have a great credit score. About 4 weeks ago, I was going through my bank statement, something I do very regularly. I never realised I pay R1.07 for every email confirmation to the recipent. R1.07 for an email?????? Really?? Then why am I paying the glorious R250 that comes with my so called private banker? I don’t think so! So having learnt the art of complaining and stating the facts, I phoned my bank. Long story short, I do not pay those extra fees anymore. It might seem insignificant, but imagine the millions of people who get charged R1.07 every time!! Being in the green puts you in a position to complain or negotiate. Take back your power. Don’t just accept what the Financial Services dish out. Question, provoke, come up with your own solutions.
What money rules do you live by tribe? Dish them out so we can learn from one another.
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