It sounds so straightforward and simple. A sure way to build wealth and in turn, take control of your financial life.
Yet thousands, if not millions are people in debt, the UK has an average debt per household of £15,385 according to TUC, trade union body.
So with this stat, the logic is that people are spending way more than they earn which is a recipe for disaster, not your best life.
Debt is the Enemy!
People are being trapped in the money game and becoming poorer day by day. It pains me to see because it doesn’t and shouldn’t be this way.
We are sold we have to get a car loan for a car, no we don’t. we have to use a credit card to pay for food, NO WE DON’T! we have to buy the most expensive house the bank will lend us, no we don’t. we are sold constantly that its ok to go into uncontrollable debt just to get by and keep up with the jones.
It’s our behaviours that are semi-programmed by advertisers and media that we must get control of.
Spend less than you earn is the first step to getting control of your finances so how do we do it?
We have to be conscious of our spending and what’s getting spent where. I’m not saying the dredged B word, Budget. I’m saying know where it’s going, be intentional and get smart with what’s happening.
It’s said once you do this, you feel like you’ve got a raise because you stop wasting money so easily and even may realise payments that are no longer needed.
I did this and realised, 2 insurance payments that were out of date and not necessary at all, saving £38 a month.
I realised I was spending over £100 a month on internet and TV. Crazy, that got halved in less than a week.
I realised I was paying for a magazine subscription that I was not even reading, yes wasted money. I realised that I was still paying for a gym membership for 2 years that I thought I’d cancelled yet didn’t. I’ve been stupid too for sure. Luckily I got back the gym membership money back with the bank’s help.
It’s called life and unless we take control, our money will disappear like candy floss in the money monsters mouths.
I share my examples because we all mess up with money. Don’t beat yourself up about it. The key is to stop sleepwalking your money down the drain.
So you need to know where you are in the money game. How much you earn per month, how much you spend per month, how much your essentials bills are like housing, utilities, food, clothes and transport.
One thing is for sure, there are levels for everything and if you’re spending more than you are earning, your level is too high. It’s time to fight back.
So if you can’t afford a new car, don’t lease one. It’s money suicide.
If you can’t afford to eat out 4 times a week on restaurants/takeaways. stop, buy fresh and learn to cook (more lessons to follow)
If you can’t afford to go out 6 times a month, go out 2 or 3 times and be happy you are taking control and not going into debt feeding the credit card companies.
You’ve got to spend less than you earn to get ahead and take back control of your financial life.
It’s not just about the money, it’s the effects that it has on people who struggle with money. Depression, anxiety and a feeling of failure are symptoms that cause people to keep chasing the wheel the wrong way.
With this said, many people suffer more than just money problems, thats why I’m so passionate about helping people wake up and start to be intentional with money.
All personal debt is bad. So the first step is to spend less than you earn and fire debt. It’s time to say bye bye debt with the baby steps for financial peace!