This is how you start becoming rich
Money has to roll, they say. I agree, but then you need to have something to let it roll. I started rolling before it was in my account (especially going in and out of the pub), only to continue rolling while I actually still had to keep something in reserve. I stopped doing that. This year I have a new goal: to fill my account to be in Greece more often and for longer. Do you want this too? This is how you start.
1. Forget the advantages about yourself and money
I had the label that I am not very good with money. Earning goes fine, spending even better, but the administrative and saving part is a bit less. Becoming rich starts with thinking the other way around. It's time to stop confirming your own prejudices. You are indeed good with money, also in your administration and also in saving. The right mindset is free.
2. Call in help from a financial miracle or just do it yourself
A financial boost in the form of an advisor helps, but you can also make sure you learn everything yourself. Dive into your finances, make it fun, and learn how to handle those euros smartly. The Money Planner from PorteRenee is a nice start or a course Fun in Finance. I just made up that title, but I see a nice opportunity here.
3. Disconnect your emotions from your bank account
A smart tip from Melissa Browne, the author of Unf*ck Your Finances: keep your emotions and impulses under control and away from your credit card. Rewarding yourself all the time with massages, new bags, weekend getaways, or a home delivery meal doesn't help. Stick to the budget you made yourself. Did you not set aside money this month for a new bag? Then you don't buy it, even if you think you've had a tough week. It also helps if you have to wait a day before you can buy something. There's a good chance that it will feel less necessary by then.
4. Pay everything back immediately
A weekend away with a friend, but do you still need to pay back that overnight stay? Don't wait to settle it until your salary comes in. If you start the month with a deficit, you'll keep filling one hole with another. A bad tactic if you want to become rich.
5. Set aside your windfalls
But I mean all windfalls, from your discount on groceries (tip from PorteRenee) to the book you planned to buy but suddenly received as a gift. Don't forget the water bill either, which you pay in nine installments but which is still on your budget in months ten, eleven, and twelve. The trick is to make saving a sport. And once you have that buffer, smart investing begins.
6. Make a fun plan
Spend a free weekend working out your financial year plan and don't do it in Excel if you don't like Excel. I make it (if I say so myself) a lot more fun by drawing it out and sticking it on large posters. This way you know what you want to save and you immediately visualize what it's for. That makes it much more enjoyable to put away in jars in your savings account every month.
