Ever wonder how you’re making money, yet your bank account feels as empty as a library on a Sunday? Well, you’re not alone in this money mystery. As a financial advisor, I have clients that come to me with this exact question.
Lifestyle Creep
Here’s the deal: When it comes to money, there’s only 3 choices: Make more, Spend less, or both. You can either make more money to afford your lifestyle, cut back on your lifestyle, or in a perfect scenario, do both.
If you’re trying to live it up without the finances to back it, you’ll find yourself going straight into debt.
I see a lot of my 6 figure earning clients fall into lifestyle creep – as you make more money, you spend more money.
How Lifestyle Creep happens
You get a promotion. Yayyy! You celebrate by going on a luxury vacation or buying that BMW you’ve had your eye on for a while. “I deserve it” you say to yourself. But let’s be honest, you’re only saying this to make yourself feel better about this unnecessary expense.
You know what you also deserve? An early retirement. A healthy savings account. Less time at work so you can spend more time with your kids or doing whatever you love.
Take a good look at how you’re spending your cash. Are you opting for short-term fun over long-term financial health? Don’t you deserve long term happiness too?
Build a Money Masterplan
It’s time to get serious about your finances. What do you want from your money and WHY? Do you want to wipe out debt, stash cash for emergencies, or invest for the future? Great. Tell me why.
Without an emotionally charged reason for your money goals, you only have a whimsical wish. Get serious about what you want and why you want it so that you can make it happen.
Buck Up and Budget
Budgeting might sound boring, but it’s like your financial secret weapon. By tracking your spending and sticking to a budget, you can make your money work smarter for you.
This can be as easy as checking what subscriptions you pay for and getting rid of 1 to 2, leaving things in your amazon cart for a week before hitting the ‘Buy’ button, or cutting back to hanging with the homies only two days a week vs. four.
Make It Rain (Legally)
While spending less is important, don’t forget about the earning side of the equation. Look for opportunities to pump up your income. Maybe you can learn new skills, grab extra gigs, or find ways to turn your talents into extra cash.
If you feel you’re not getting paid what you’re worth by the corporation you work for, you can look elsewhere or renegotiate your salary.
Get a Money Guru
If you’re feeling stuck in the money maze, consider getting some expert help from a financial advisor.
They’re like your financial Yoda, helping you create a custom money plan, set real goals, and guide you on your path towards implementing financial greatness.
In a nutshell, you’ve got the power to create a solid money plan. It’s about discipline, finding help to create a solid financial plan, and facing the realities you might be running away from. So, let’s strive towards making that money work for you… reach out if you need help.
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* The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which strategies or investments may be suitable for you, consult the appropriate qualified professional prior to making a decision. Investing includes risks, including fluctuating prices and loss of principal. No strategy assures success or protects against loss.