I truly believe in working hard and playing hard. What’s your perspective? I dare say if you are focused on realising a dream, whatever that may be you are giving it all your focus and attention.
What I have realised in my humble 35 years on this earth, is that life in its fullness, comes to those who are ready to receive it.
I love what Bella-Marie who writes ‘Small Steps Saturday’ is doing regarding the mind-set required to fulfil your goals pertaining to fitness and a healthy lifestyle.
Do you have a fit mind?
Our mind is the first muscle’ to get fit before the rest of the body decides to line up and work in tandem and that transition is HARD and can be painful unless one is prepared.
So how about your finances?
Are you financially fit?
We all want to look good, eat good, drive good, live well, have awesome children, great spouse, awesome sex lives etc… And yes, it’s all possible. But, are you prepared to receive all these things?
Trust me, when I first started the principles of money management it was HARD. I always tithed, that was ok, living on 90%, but then having to live on 80%, it was a shock to the system. But do you know what? Once, I started to see change take place, those feeling and thoughts of never having enough started to disappear. Every time money came in, it was just a habit to manage my income, and it started to become exciting seeing my jam jars’ grow and grow and grow.
This topic may be boring, but it’s like the bush tea my mum would boil it would stink to high heaven and taste bitter than anything you can imagine, yet it was the best thing for you and worked almost immediately
So, in continuation to last week’s post
How do you manage your money?
What do you do next, once you have tithed 20%? Well, what are your priorities?
Majority of people have bills to pay, such as gas, electric, sky/cable et cetera. Then there’s the food and grocery shopping. That will be a number one priority for us who want to maintain a good healthy lifestyle. Plus the price of food is steadily creeping up so you have to budget for this also (as well as buy some gold and silver).
I tend to budget 55% towards household expenses. So, if net household income is Â£1000 (one thousand pounds) then Â£550 would go towards your household costs including shopping/grocery.
That means there is now 25% remaining. So what’s next? Well, all work and no play would make Jack a very dull boy (or Jill a very boring girl).
I use to remember the number one reason for me being a broke student at University was I spent all my money on raving and going out (well, I wasn’t a raver Michelle will vouch for that and Zena) but I did own a car and I did like to have fun, so once the rent was paid, there was only enough money to barely eat – but somehow I would exhaust my student loan and overdraft on a social life and mobile phone bills rather than the more essential things. Now, had I utilised a system of managing my money, I may have budgeted 10% or maybe even 15% on play and social, since that was my priority. And once the pot was empty, rather than getting into debt to look good in front of my peers, I would genuinely say there’s no money in the pot for going out tonight!
Now, can you see how this system is so powerful?
Wealth and prosperity is a mind-set before it becomes a reality.
The major question to ask yourself would be Are you ready to receive a million pounds today?’ or in other words, could you manage a million pounds, today without blowing it all in two years or less? Are you going to be average like all the others or are you going to be flying with the Eagles because you deserve to?
Guess what? He who is faithful in that which is least, is also faithful with much’ (Luke 16:10). That is just how life goes, so if you are not going to tithe 20% on Â£1 you are not going to do it with a million!
If you are not going to be faithful to drink one glass of water today for a week, you will not be faith to drink a litre
So, the final 10% (or 15% depending on your priorities) would be on your education and also on those unforeseen eventualities that always seem to creep up at the wrong time. In reality, most people do not read that much, you may wish to invest in a book a month or pay towards a monthly subscription for a course that you need to help you with your business or achieve your goals. So put 5% to 10% away towards education, if you believe this is necessary. However, if one is not learning, it can be argued that one is not growing. And if one is not growing what are you doing? Dying?
So, the last 5% (or 10% depending on what you have assigned to your previous categories) would be going towards long term savings (for spending), in other words, if you can save Â£50 (5%) to Â£100 (10%) every month, then you will not have to worry when it’s MOT time or fridge, washing machine etc breakdown.
Hopefully you can see the benefit of having the ability to manage your money well. If you follow this system, you have just increased your disposable income by an extra 20% without having to do any overtime, or securing any more sales. Also notice that had you applied this system from school or even university, most likely debt would not be such a pandemic as it is today. You wonder why they do not teach such vital information within schools.
Anyway, the main thing is that you can start right where you are NOW! No excuses take action now and see the results in less than 30 days!
One last thing What happens if the 55% you apportioned for your bills and utilities is not enough? Hey, just pay them what you have (pro rata if you have to), but don’t kill yourself and starve to pay a bill, else you will be in dire straits. I will discuss this more in detail next week, but essentially, the key to having money is managing it well, and that includes making sure the money stays in your pocket rather than someone else’s.
And once you can understand this, to make sure you can maintain all your outgoings, you have to master yet another skill you must have an ability to make money!
To your success!