7 Steps to Regaining Your Financial Health
Before being ready to get out of debt and free myself financially I had some extremely un-resourceful beliefs around money and wealth in general.
I sae all people who had money as selfish, evil and not me.
After my catalyst of experience I vowed never to again be in a position where no choice was available to me based on my financial health. So I started getting serious about creating a healthy bank balance and ultimately choice in my life.
As I researched I uncovered many things I was previously unaware of. That there are systems to creating wealth, that there are many many people who use money as a tool to influence the world for good, investing in philanthropic ventures and businesses. I learnt that money is one of these incredible tools that we can use to make more money and that we can start this process no matter our current financial situation.
I learnt it takes patience and consistency. It takes a change in the way I had interacted with money and the habits I had around them.
Before I would live pay check to pay check and get overwhelmed when a “big” annual bill would come in or an “unexpected” car issue would arise. I had no money set aside for emergencies and none in savings.
All of that had to change and did.
Below I want to share with you the financial health principles and practices that have allowed me to turn my financial health around. It takes time and I am still on the journey to creating financial freedom. And I am a lot better off for it.
1. Know Your Numbers!!
- How much are your annual expenditures? This includes medical expenses, clothes, car expenses, annual bills.. Everything!
- What is your annual income?
- Have envelopes for the annual/quarterly/random bills and put money in on a fortnightly/weekly/monthly basis based on the total annual bill, so that when the bill comes in you have the money sitting there.
- Get as much automated as possible. direct debit etc in smaller incremental amounts as much as you can so that you remain ahead of your bills.
- Check your financial health weekly. What did you spend your money on? Was there any “leakage”? And how much did it cost you?
2. Spend less then you earn.
- If when you get your numbers you have more expenditures then income… Where can you reduce your expenditures and where can you increase your income?
- 10% of all income to savings that is only to be spent on things that make you more money
- 10% of all income to be invested in contribution – charity or philanthropic investments.
- 80% of all income to expenses including living expenses, holidays, entertainment etc. Anything that does not make you more money gets spent from here.
This took me a while to get to. First I wanted to pay off all debt that was costing me money. i.e. with interest associated to it. Then I was able to use the money I had been paying debts with to start investing in my future. Little by little, constancy pays off.
4. Treat your money with respect!
- What this means is to house it well. Buy yourself a wallet/purse fit for your wealth. Organise it in order of value. Thank it as you release it into the world. Sharon Pearson once shared with me a saying I love, “For this and so much more, I am grateful” to speak when handing over any sum, at any point, no matter your financial health.
- It is also recommended that you carry the amount of money that you wish to be paid for a days work around with you in CASH. This money is not to be spent and is on top of any spending money you hold in your wallet/purse.
5. When it comes to investing your money, do your research.
- Learn from the best and make informed decisions.
6. Start where you are and make small incremental steps.
- Be patent with the process, it does get easier and it needs your commitment and dedication early on.
7. Finally, cultivate some amazing positive associations to money.
- Research people and companies doing incredible things with their excess money and look into what you would like to do with your contribution funds. How can you make this world a better place simply by allowing more money into your life? It’s very hard to live your full potential when you are distracted with concern of how to put food on the table.
- Look at any old beliefs around money and replace them with empowering beliefs grounded in gratitude and contribution.
Money is a number on a screen. It is no more real than any other form of perceived reality and no more difficult to change than any other area of life. If you have relationship issues there are specific strategies and systems to help open your heart and communication. If your building business, there are strategies and systems that help develop product awareness and customer engagement along with back of house runnings. If you are wanting to get fit and healthy, there are strategies and systems that will ensure your intake is less then your output of fuel and that your body burns the excess fat you have in your store. If you have money issues, there are strategies and systems that ensure your deficit becomes a surplus.
With each however you must be willing to follow the system. To follow the strategy and to change what you are doing. And that choice is totally up to you.