Imagine this: you’re stuck in a job you hate, working long hours for little pay. You can’t seem to save any money, and debt is piling up. Wouldn’t it be great if you could find a way to make money work for you instead of the other way around?
Well, that’s exactly what getting good with money can do for you.
It can help you escape the rat race, work fewer hours, and have more control over your life. So if you’re looking for a way to improve your financial situation, be sure to check out this beginner’s guide on getting good at money.
Table of Contents
Money is a sensitive topic for many people
Money is a sensitive topic for many people. We often feel uncomfortable talking about it, and we often don’t get enough education on it. This can lead to a lot of challenges when it comes to our finances.
-Money is a sensitive topic for many people. Is it the root of all evil, or is it just a tool to use to get you what you want – if you know what that is.
-We often feel uncomfortable talking about it – who is earning or spending more, how you use your money compared to others, what is spending well vs wasting money and who decides this?
-We often don’t get enough education on it, maybe you learnt about money at school or home, but the fact is most of us don’t and haven’t updated our knowledge this then.
-The importance of money – whatever your position is on money, you probably need it, spend it and earn it nearly every day of your life. You can use it to make your life easier or more tricky. You can spend your money as your like; you just have to live with the consequences!
-The rat race, do you want to work forever? OR would you like more choices now and later?
-Debt – managing your good, bad and ugly debt is also about managing your financial expectations and urges. How much debt you have and what you think about it will differ from even your closest neighbour.
Many of us don’t get enough education on money
It’s more important than ever to get good at money. Money is a sensitive topic for many people, and the majority of us don’t get enough education on it.
One of the best ways to improve your financial situation is by improving your financial literacy and education. This means learning more about money- how to save it, how to invest it, and how to make it work for you.
It’s more important than ever to get good at money.
Remember, it’s your money. Wouldnt you like to keep more of your money? using your money on the important things in life to achieve your favourite future? or just watch it slip through your fingers day by day?
Investing can help you grow your money over the long term. This means investing in assets such as stocks, bonds, and real estate. Learning the key principles of investing could well be your secret weapon to making money while you sleep.
Creating a life plan covering what you want to achieve and how money is going to help that happen is a vital part of making money work for you. This means planning for your short-term and long-term financial goals.
Allocating your money to different categories such as food, rent, transportation, and entertainment and tracking it will help you understand where your money is going. You can use an app to do it all for you or use the Kakeibo method to track every penny manually.
Many of us don’t know what we want and so have no idea how to get it
One of the biggest challenges people face when trying to achieve financial freedom is that they don’t know what they want. They don’t know what they want, so they have no idea how to get there.
And on top of that, they’re usually working long hours for little pay, which makes it difficult to save money.
Combine all of that with debt piling up, and it’s no wonder so many people feel stuck in their current situation. If you’re looking for a way out, here are a few ideas.
-Knowing what you want
Would you believe it a lot of people can’t tell the difference between what they really want and what they want right now.
I want to be free from the need to work for money, but I also want a new car, a big house and a plasma tv every few years!!
You can have one, but both are going to be tricky.
-Figuring out your goals
One of the best ways to achieve financial freedom is by figuring out your goals. What do you want to achieve in life? What are your dreams and aspirations?
Once you know what you want, it’s much easier to figure out how to get there. And on top of that, it’s a lot more motivating to work towards a goal than it is to work towards nothing. If you’re looking for a way to figure out your goals, be sure to check out this helpful article on life planning.
-Setting a budget
Another important step in achieving financial freedom is setting a budget. This means figuring out how much money you need each month to cover your expenses. Then make sure your money is going to the places you want it to go.
-Making a plan
Once you have your budget set, it’s important to make a plan for how you’re going to achieve your financial goals. This means figuring out what you need to do each month in order to reach your goals. It can be helpful to break it down into smaller steps so that you don’t feel overwhelmed. If you’re looking for a way to make a plan for your finances, be sure to check out this helpful article on financial planning.
-Sticking to a budget
It’s not easy to stick to a budget, but it’s worth it in the end. One of the best ways to stay on track is by tracking your expenses. This means recording every penny that goes in and out of your account each month.
One of the best ways to improve your financial situation is by investing your money. This means putting your money into an investment vehicle, such as a mutual fund or stocks and letting it grow over time.
Remember, cash is not an investment as it is guaranteed to lose money over time to inflation.
You need to be investing in things that will maintain your purchasing power in the long run.
-Living a debt-free life
One of the best ways to achieve financial freedom is by living a debt-free life.
This means paying off your debts and not accruing any new ones.
It can be difficult at first, but it’s worth it in the end. If you’re looking for a way to live a debt-free life, be sure to check out this helpful article on getting out of debt.
You’re probably making your life a lot harder than it needs to be
When it comes to your finances, you can often sabotage yourself by making things harder than they need to be.
You might have good intentions, but you don’t always follow through with them.
This can lead to a lot of challenges when it comes to our finances. Luckily, there are ways to avoid financial self-sabotage.
So if you’re looking for ways to stop self-sabotaging yourself, follow the link.
One of the best ways to get good at money is by making your money work for you.
This means using your money in a way that helps you achieve your goals.
There are a few ways to start.
-automate your finances
One of the easiest ways to get good at money is by automating your finances. This means setting up a system that automatically transfers your money to different accounts.
-create an emergency fund
This means setting aside money so that you have a cushion in case of unexpected expenses. If you’re looking for a way to create an emergency fund, be sure to check out this helpful article.
-Track your numbers,
Income, expenditure, net worth and investments. Tracking YOur money will play a big part in getting on top of your money and managing it to achieve what you want most. Here is an article with more info
-Take the free money from your employer
, i.e. the pension they offer. If your employer offers a match to your pension contribution, take this free money.
One of the best ways to get good at money is by avoiding debt. This means making a plan to avoid getting into debt and sticking to that plan.
-Inflation and your lifestyle inflation
Inflation is a measure of the average price level of goods and services over time. It’s calculated by taking the current price of a basket of goods and services and dividing it by the price of the same basket from a base year. This gives us an idea of how the average price level has changed over time.
This is the cost of things you buy going up every year. Imagine what things will cost when you come to and then live in retirement for 20 + years.
Lifestyle inflation is when your spending habits increase to match our increasing income.
This can be a dangerous thing because it can quickly lead to debt. If you’re looking for ways to avoid lifestyle inflation tracking your money is one of the best ways.
No one is coming to your rescue – it’s down to you
When it comes to your finances, you can find often find yourself putting off dealing with them until later.
You might know that you need to do something, but you don’t always take the necessary steps actually to do it.
This can lead to more and more money issues and worries. Luckily, there are ways to overcome this.
So if you’re looking for ways to improve your financial situation, be sure to check out this helpful article. It can show you the steps you need to take in order to achieve your goals.
One of the best ways to get good at money is by getting on with managing your money.
This means taking the necessary steps to deal with your finances head-on. There are many different ways to do this, and it’s important to find one that works for you.
-know what numbers matter, how much you are spending and saving, your networth and your freedom number
-get organized – get your paperwork sorted out of the draw and into a file
-start with a simple plan – what does a good financial situation look like to you? Is it debt-free? is it retired at a certain age?
-adjust your plan regularly. It’s not set in stone; things change, stuff happens.
-read and research good financial books yearly, keep your financial literacy high.
-don’t waste money on things you don’t need – you might need to review this regularly as it may change over time
There is likely no one coming to your rescue.
Put your own mask on first by getting good at your managing your money.
Your most expensive bill is still to come – are you ready?
When it comes to our finances, we often put off dealing with them until later.
We might know that we need to do something, but we don’t always take the necessary steps to actually do it.
This can lead to a lot of challenges building up over time.
One of the biggest bills you are going to need to save for is retirement. Whatever retirement means to you is likely to cost a lot of money.
This means you will need to be setting aside money each month so that you have a big enough retirement pot to live off comfortably.
You wouldn’t set off on holiday with just the money in your pocket, would you? Well, this is what you might be attempting to do with your retirement if you don’t get serious with saving for it.
There are many different ways to save for your retirement, and it’s important to find one that works for you.
-How to save for retirement
-One of the best ways to save for retirement is by contributing to a work placed or private pension. This means setting aside money each month to grow so that you have enough saved up when you retire.
-Another great way to save for retirement is by contributing to an ISA or an individual savings account. Again monthly savings that can build up over time. The longer the time, the greater the amount of savings you will have.
-How to catch up on retirement savings
-If you’re behind on your retirement savings, it’s important to take action and catch up. You will likely need to up your savings amount by spending less or earning more or a bit of both. Get out of debt and reduce your cost of living as best you can. Use the spare money to make your retirement more comfortable.
-Know how much money you need to retire
-One of the pitfalls of not saving for retirement is not knowing how much money it will take. It’s challenging enough to figure out how much you’ll be spending every month on living expenses, so you definitely need to have a plan in place. Luckily, there are many tools available online that can help you figure out how much money you’ll need to retire.
A brought way to calculate your retirement needs is to x your current yearly expenditure by 25; this will give you a rough estimate of the fund size you might need.
30k spending year x 25 = 750k pension fund.
You will need to figure out how you can create an income source that you never need to or want to retire from. An income that you can also earn while you sleep!
-Make a plan for retirement
-One of the most important things when it comes to saving for retirement is having a plan. If you wait until the last minute to start saving, it could be harder to reach your retirement goals. So if you’re looking for a way to save for retirement, be sure to check out this helpful article. It can show you the steps you need to take in order to achieve your goals.
-Don’t waste money on things that aren’t important
Some of these examples might feel overwhelming, but it’s important not just read this article and do nothing with the information. There are many ways that people overspend their money without even realizing it.
If you’re trying to learn how to get good at money, one of the best things you can do is cut back on the things that aren’t important to you.
-Get on top of your debt
Getting on top of your debt is a key driver of financial success. This will prevent it from piling up and causing even more problems down the road. If you think you might have some credit card or other type of debt, it might be time to come up with a plan to get rid of it.
-Learn how to budget
Budgeting isn’t always easy, but it’s an important skill nonetheless. If we don’t know where our money is going each month, it’s hard to save enough for important things like retirement. This is why learning how to budget is one of the first steps to taking back control of your money.
-Don’t spend more than what you make
It might seem obvious, but this is one of the most common problems people have with money. Even if someone has some savings, they might not have enough saved up for emergencies or other issues that come up unexpectedly.
-How to make up for lost time when saving for retirement
If you’re behind on your retirement savings, it’s important to take action and catch up. You can do many things to make up the gap between what you have saved and where you need to be.
You can start by contributing more money each month to your retirement fund. You can also look for ways to reduce your expenses and increase your income. If you’re willing to make some changes in your life, you can definitely catch up on your retirement savings.
-How to save for retirement when you’re not good with money
1. Start by setting a goal for how much money you want to have saved by the time you retire.
2. Make a budget and stick to it as closely as possible.
3. Try to cut back on expenses that aren’t important to you.
4. Save as much money as you can each month, even if it’s only a small amount.
5. Invest in a retirement fund and continue to contribute money to it over time.
6. Speak to a financial planner or coach if you’re having trouble saving for retirement on your own.
Conclusion Why you need to get good at money a beginners guide
Everyone needs to get good at money because it’s the only way to reach financial freedom and make work optional one day.
Even if you think you want to work forever, at some point, the choice to work or not might be nice.
To have a comfortable, dignified, independent, and a choice full life, you need to take your finances seriously.
And it is going to have to be you; no one is coming to the rescue.
But this doesn’t have to be painful unless you want it to be?
- Have a basic plan where you are trying to get to
- Automate your finances,
- Track your money coming in and out,
- Save AND invest,
- keep improving your financial literacy
- Take the free money from employers pension contributions
- Maintain good financial habits and behaviours and avoid the bad ones.
The sooner you start, the better!
FAQ: Why you need to get good at money
Q: Why do I need to get good at money?
If you want to avoid living paycheck to paycheck, suffocating debt, working forever, and an uncomfortable retirement, you need to get good at money asap.
Q: Where do I go to learn more about financial education?
Q: What are the top 6 ways to get good at money?
2. Pay off your debts potentially using the avalanche or snowball methods
3. Keep track of what you spend – know what comes in and goes out
4. Invest in yourself to earn more money down the line – read books, take courses, listen to podcasts
5. Automate your finances to save time and avoid mistakes – letter the computer takes the strain from making good decisions.
6. Focus on earning, not just spending money. Try and create more than you consume