How to stop living from pay check to pay check

Ever since I came across the concept of financial independence I developed a curiosity for it. Coming from a middle class, working family with average wages and a modest upbringing I was stunned when I read “Rich dad, poor dad” by Robert Kiyosaki. Having seen my mother work 12-14 hour days sometimes and still struggling to cope, barely making it from month to month with very little or no savings, I could not believe it was possible to build your wealth quickly and retire early unless your parents are already wealthy or you inherit a very large lump sum or assets to allow for an early retirement. Needless to say I started reading more books and before I realised I was already hooked, almost obsessed with the concept of achieving financial freedom. I started asking questions and talking to people about it and was surprised at the lack of financial awareness of my generation. Sadly, in a world where we are the target of well-thought marketing campaign, as a woman you are more encouraged to walk into a Boots or a clothing store every month than you are to save money for a rainy day. So, after years of research and study of this topic I bring you the first blog designed to help you and women worldwide achieve financial independence and the freedom and quality of life that comes with it.

Initial steps to help you stop living from pay check to pay check:

1.Save £1,000 fast! Now, this usually triggers one of the following reactions in people: some of you would argue that they are already stretched and “cannot afford” to save at present. After all, some of you are still recovering from December and cannot wait for January’s pay check. Others who are a little better off may think: I’ve already got £1,000 saved. If this is the case, that’s great! Now save £5,000 quickly! Because your ultimate goal is to save 3 times your salary as a starting point if you are in a permanent role and 6 months’ worth of living expenses if you are in a contracting role / self-employed or on any temp assignment. WHY? At some point in life (whether next month or next year) you will be faced with some form of an emergency: boiler stops working, car needs repairing, you need dentist treatment that cannot wait for the NHS, one of your family members or loved ones needs emergency surgery and NHS won’t cover the full cost and so on. Having that £1,000 saved may not solve all your problems but at least it will help alleviate some of the emergency or panic that comes with it and will give you more peace of mind than otherwise another benefit of this is that you save the interest that comes with taking the money on credit. You don’t know whether the situation will get better next month and if you can pay it all at once so why won’t you be smart and think ahead?

2.If you have any credit card debt, list it, add it all up and create a written plan to reduce this. Depending on your debt amount, the plan will differ for each of you but the single most important thing is that you GET STARTED. Not tomorrow, not on Monday, TODAY! Just write the full amount down starting with the largest and work out the ‘how’ later. The main thing is that you acknowledge and face the elephant in the room. If you have no debt, your task if to work out how much you need for your emergency fund as per my first point and draft a plan to get you there ASAP, preferably within 6 months. If you need help in doing this, get in touch.

3.Stop spending! The quickest way to avoid burying yourself in a deep hole is to stop digging! Do yourself and your future a favour and cancel whatever can be cancelled that comes with a cost or requires a new outfit (still a cost in an indirect way). Although I would be nice to attend, think about being financially free…let that feeling sink in for a second. What would your life look like if you had no financial commitments? Dream about it for a moment. How does it feel? Now, since you have to give something in order to receive I encourage you to give up your temporary plans (those that can be cancelled / rescheduled) and focus on taking control of your life and your finances! I guarantee, it will be one of the best decisions you have ever made. Take charge and set yourself free!

I wouldn’t ask you to do anything I haven’t done myself. These 3 steps are tested and they work!
If you require a financial assessment and help building a plan send me an e-mail NOW. Since January is all about bargains, the first three people to contact me and request a financial assessment will receive it pro bono.

To Your Financial Success,
Renate

“When there is hope in the future, there is power in the present” – Zig Ziglar

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