We’ve all been struggling with this one at some point in our lives and the biggest question is always HOW? It sucks that we can’t simply walk into our backyard and pick money off a money tree, but what exact steps can be taken to improve on your current situation, steps that actually work? We have 7 steps right here, that can make for a great start in your financial freedom >>
1. Check Your Credit Score/ profile
In order to get control of your finances, you need to have a starting point. You also need to know if there are debts affecting your credit score that aren’t even yours!
By checking your credit report, you’ll be able to find out your credit score, and what factors are affecting it. Thereafter you can be pin-pointed in the right direction in improving it.
2. Add Up Your Debt.
After seeing your credit score, panicking will get you nowhere! Instead , why not create your new financial plan, you need all the details.
This means adding up all your debt. Take a piece of paper (or make a spreadsheet if that’s your thing) and list the name and amount of each amount that you owe to others.
Come up with a grand total, even if it hurts a little. Once you know how much you owe, you can come up with a plan to start paying it off.
3. Define Your Financial Goals
So that you know where to aim, it’s time to start thinking about your financial goals. In order to set those goals, you need to figure out your priorities.
That involves determining what things are important to you and ranking them. Do you want to be debt free? Or save money for a different car or house down payment? Maybe you dream of retiring at a certain age or want to help your kids pay for college.
Even if it seems impossible right now, it’s SO important that you believe you can accomplish your goals. Without that belief in yourself, how will you improve?
4. Start Saving!!
And no, don’t roll your eyes at this one! Like a broken record, this will stand the test of time – Save, save , save!! Every cent counts, so it doesn’t matter how little – You need to save!
Even if you are more focused on paying off debt right now, it is still very important to have an emergency fund. Unfortunately, crappy stuff just happens in life sometimes. After a speedbump just get back up again and start over, don’t give up!
If you think credit cards are your emergency fund, you might be broke for life. You need an actual savings account with at least R10 000 in it.
Set it up so that right after every paycheck, a certain amount gets transferred to savings. That way you won’t forget or accidentally spend that money.
5. Learn To Be Content With Less.
You don’t actually need all the things you think you do. Your happiness can’t rely on spending money. We’re constantly being bombarded with advertisements, and they’re all designed to make us unhappy with our current situation and in the end spend more.
You might not even realize that it’s happening, so start trying to be aware of the marketing all around us.
Look for activities you enjoy that don’t involve spending money. There are plenty- trust me! Google it!
It can even be fun to get creative with how little you can spend!
6. EAT AT HOME!!
Now we all know that Uber eats and Mr Delivery Apps are super accessible, convenient and easy to use, but they are also filled with expenses you really don’t need to be making, when you could cook up healthier meals at home!
Try eating dinner at home and packing your lunch this month. You will seriously save so much money by this one simple change!
7. Get A Side Hustle.
Lastly, If you really want to improve your financial situation quickly, the absolute quickest way is to earn more money. You can reach your money goals so much faster by having more of it to save or pay down debt with. Who knows, you might start earning more with your new side hustle than you ever did at your regular job.
We hope these get you in the right direction to start improving on your life! #IMPROOVA