Ok, you might not like what I have
to say in this conversation. But I feel it's my duty to keep it real with you.
So today we're talking practical money tips in the form of 8 ways to improve your finances. Now, why do I feel that I'm
qualified to talk about this, well I'm not a financial professional
if that's what you're looking for, but I am someone who is investing a lot of time
into learning all I can about how to manage money. Because I don't know about you, but I
wasn't taught any of this in school. And growing up I only understood
the things that were told to me, like: make sure you're putting money into your
savings every month, or get a credit card, because you'll need it, but don't
forget to pay it off every month. You see, I learned about money, the
same way many of us learn about it. By getting a job, receiving a paycheck,
paying what I owe, saving what I can, and then splurging on myself every now and
then because I work hard, and I deserve it. However, this way of thinking kept me stuck chasing my own tail, living paycheck
to paycheck, doing what most people do. Understand your financial values. Have you ever had a conversation with
someone about life, and when you ask them how are things going? Their immediate
response is something along the lines of, "well, you know, just trying to get ahead."
Implying that they feel stuck or behind in life, primarily financially or within
their career which almost always leads back to a financial status—wanting to
make more, so they can try and get ahead. See, when it comes to money, many people
feel stuck simply because they don’t know what they want out of life. And just trying
to get ahead, if I can be honest with you, is a pretty surface-level response
that doesn't carry much value. So if you're serious about improving
your financial situation then find an answer or answers to this one question. What do you value more than anything else? Is it quality family time, travel and adventure,
living a debt-free life, more time to spend on a creative venture maybe, escaping the corporate rat
race, freedom, giving, and building connections? Regardless of your answer, understanding
what inspires you, your financial values, what you want out of life, will without a doubt
help you stay focused on improving your finances. Embrace inconvenience. Our society, as we know it today, is
evolving rapidly—overnight it seems, as technological advancements
continue to promise and impress, and our dire need to purchase
convenience continues to grow. And because of this, along with the
extremely clever advertisements that seem to know everything about us. It can
be tempting to spend money we don't have, to buy things we don't need, in an
effort to keep up with convenience. However, the price of convenience
is beginning to knock on the door of outrageous and if your primary
goal right now is to save money and improve your finances then I want to
encourage you to embrace inconvenience. Meaning adopt a DIY mentality and start doing
things that may require a bit more work from you in the short term, but are proven to help you
save your hard-earned money over the long term. For example, meal prep and cook more
instead of eating out. Now to be fair, you're still going to have to grocery shop
smart. This means having a grocery list, setting a budget, and checking
prices. If you're not disciplined about this, then you'll continue to waste
a ton of money, trust me, I've done it. Set S.M.A.R.T. and challenging goals. In addition to understanding your financial
values and starting to embrace inconvenience, you also have set goals. Not just any goals, however, S.M.A.R.T. and challenging goals
that align with your financial values. Let's break down what this means. S.M.A.R.T. is an acronym for the following: Specific, Measurable, Attainable,
Relevant, and Time-bound. Now, S.M.A.R.T. goals are different from regular
goals. S.M.A.R.T. goals encourage you to turn your aspirations into more actionable objectives
so you can see the progress you've made. This method gets rid of the vague parts of
traditional goal setting by creating a structure that translates to you actually
achieving your goals. Here's an example. Let's assume that one of your financial
values is to live a debt-free life, but you still have some unpaid
debt that you need to take care of. In this instance, what type of goal should you
set that fits within this S.M.A.R.T. structure? I'll show you right now. Here's what your goal should say: To pay off $XX,XXX.XX of debt by
the end of _______ (MM/DD/YYYY). Now how does this fit without
our S.M.A.R.T structure? This goal is Specific because if it immediately
highlights exactly what you want. Remember, the more specific you are, the greater the
chance you’ll get exactly what you want. This goal is Measurable because
it's concrete and trackable. "Pay off debt" is a statement
that cannot be denied, making it concrete. It's also trackable
because it's attached to a dollar amount, and as you pay more money towards your debt you
can track your progress until it's paid off. This goal is Attainable because it answers a very
important question: can I achieve this goal with the time and resources that are available
to me? If not, what do I need to adjust? This goal is Relevant because it's important
to you and it's something you care about. It's also in alignment with your
values so it only makes sense. This goal is Time-bound because it has
an end date that keeps you accountable. You see, one of the biggest reasons people
don’t complete their goals is because they don’t give themselves a target date to work
towards. Saying you want to pay off debt, and writing that goal down is a great start,
but by when is the piece that makes all the difference between a goal that might get
achieved and one that will get achieved. Now, why am I encouraging you to
also make sure that your goals are challenging? Well if you're
serious about improving your finances then you also have to be serious about
challenging your own beliefs and current habits. If you're not willing to step
outside of your comfort zone and challenge yourself to achieve great
things, then you'll never achieve great things. You see, building wealth
doesn't happen by accident, it takes hard work and discipline
for starters, but that includes challenging what you believe is possible so
you can do what you never thought you could. Refuse to finance...anything. One of the biggest mistakes that you can make
when it comes to managing money is thinking that you can barrow your way into a better financial
future and the honest reality is that you can't. The only way to improve your
finances is by eliminating your debt and then refusing to go back
into debt once you're free from it. Now just a few moments ago, I was talking to you
about challenging your beliefs and current habits. This is the perfect example of what I mean by that
because refusing to finance...anything is an idea that goes against what many of us grew up learning
and watching. It's the complete opposite in fact. And since debt is so easily accessible and
constantly being sold to us as something we need in order to be financially stable or
to enjoy life, it can be hard to believe anything or anyone that says otherwise. But
I'm living it, and you can still enjoy life and create financial stability for yourself without
borrowing just because it's available to you. Fast-track your debt repayment. As I just mentioned, eliminating your debt is a
must if you want to improve your finances. So the best way to do that is by simply doing a little
math and seeing what your current debt repayment schedule is versus what it could be if you put
any extra money you have towards it every month. Now, to do this you have to first determine
how much extra money you have and can afford to pay in addition to your monthly minimum.
And you do this by getting on a budget, canceling unnecessary subscriptions, and
telling your money exactly where to go. It's also important to note that
turning your hobby into a side hustle, or picking up a temporary second job
are options you have to make more money that will help you speed up your debt repayment. Remember the goal is to improve your
finances and having debt will without a doubt prevent you from doing that.
See, I never mentioned that this would be easy. Nothing I'm sharing with you in
this conversation is going to be easy. But trust me, it's worth it when you commit to
challenging your beliefs and changing your habits. Discover the art of delayed gratification. The phrase delayed gratification
is often frowned upon, like what do mean I can't have what I want now.
Well, you can't, until you can afford it. You see, I don't know what it is
but the thought of having to wait to get something you want doesn't sit well
with many people. Maybe it's because we've been conditioned to think that we can get
whatever we want, whenever we want it because we can quickly and easily finance it. But as
I just mentioned earlier in the conversation, if you choose to refuse to finance, which I think
you should, then you don't have that option. That means the only option you have is delayed
gratification and there's absolutely nothing wrong with waiting. In fact, I believe the process,
the journey of saving and being intentional and purposeful with your money until you
can afford that thing you really want is much more rewarding than buying whatever
you want, whenever, on borrowed money. And this might not surprise you, but usually,
when you delay something that you really want and enjoy, you tend to appreciate it that
much more when you do finally get it. Create and maintain a budget. When you take the time to manage your money, not only will your finances improve,
but your financial confidence will too. You see, having a budget can help ensure
that you’ll always have enough money to pay for your expenses. It will also
expose your bad money habits if you have any. Now, since we’re keeping it real, I’d like to
share a quick story with you, if you don’t mind. When I wrote my first budget, I had no idea
what I was doing. Let’s just say the attention to detail was lacking. However in
that moment, when I started to write down where my money was going, it was an
eye-opening experience, to say the least. Of course, I had my fixed expenses; rent, wifi,
subscriptions, gym memberships. Things that didn’t really change month to month, if at all. But
when it came to those variable expenses, whew… let me tell you. I had no idea how much
I was spending a month on groceries, eating out, shopping at random
moments because I was bored. See, budgeting, while it can be
intimidating when you first start out, is by far one of the best tools you can
use to regain control of your money. As I mentioned it will definitely help
you improve your finances, but it will also help you build financial confidence,
which is a game-changer once you have it. Have money saved. The simplest way to improve your
finances is by simply having money in the bank. It’s mind-blowing to me how
many people don’t have any money saved, and this includes your general savings, your
emergency fund, your sinking funds all the above. Now really quick, I want to take a moment
and talk to the 25-year-old watching. I’m not neglecting everyone else, but if you’re
somewhere between 23 and 35, I want you to hear this. Because it might hit home if it comes
from someone around the same age as you. We have to stop pretending to have more
than we do, by spending what we don’t have. Roughly 50% of Americans have less
than one month of their income saved. That’s just mind-blowing, and we
can’t blame anyone but ourselves. So if you want to improve your finances, starting
saving some money for a rainy day. 3 to 6 months of expense to be exact. You have to, because if
something happens, such as a personal emergency or a National pandemic you’ll have what you
need to take care of you and your family. I hope shared something with you that
really hit home and resonated with you. And if I did, comment below what that was. Keep growing, keep learning
and always stay true to you. I’ll see you in the next one. Peace!
