The Secret To Fabulous Finances

 Are you sick of living your life on credit? Would you like to have a lump sum of money you can fall back on if unforeseen circumstances strike? How about the ability to generate passive income so that you can choose how you live your life, where and with whom you spend the most precious commodity - time? 

There are only two excuses or reasons why people fail to take action on their dreams so they can live their ideal life. Not enough time or not enough money. These two key areas in our lives limit us and our potential, instilling fear that if we were to take a risk chances are we would fail. The focus generally goes to the negative and undesirable outcome which is what become reality. I would like to give you the tools and strategies to get your finances back on track and design a life that is heading towards you having your perfect ideal average day. 

The perfect ideal average day is one that is just that - average! You are not on holidays or doing things that are unusual. It is simply how you would spend your time if you had the choice to do whatever you like. You may decide to start your days late, read, socialise or go shopping. Whichever way you see it is perfect for you. 

Did you know that more than 25% of people have only 1 month of savings for emergencies in developed countries such as Australia and America? 64% also live pay check to pay check which is a statistic that continues to grow over the years.

Family budgets; I get asked 'What for?' It is staggering to know that people don't have a concept of what is going in, coming out and whether they can afford the lifestyle they are living. This is very scary and unfortunate especially when these individuals start having children and the cost of living jumps up to a new level with often less income and higher expenditure. 

I would like to share with you some of the secrets to improve your finances and start generating wealth that will see you live out your life in luxury rather than in lack. One other famous statistic to become familiar with is: By the time people reach retirement age:

•  1-2% are wealthy 
• circa 78% are on welfare and/or heavily supported by family members 
• 20% are dead 

Which statistic would you like to belong to when you retire? 

Our education around finances starts very early in life. Think about who you had as a role model around you growing up. Were they good with money or just made ends meet at the end of each pay cycle? Our beliefs about how we manage money and more importantly how we make it are set well before we turn 10 years of age.

It is very important to know what you believe about money and finances comes from and if necessary to start creating new beliefs that will serve you going forward. 

I would like to illustrate how beliefs around money are created by sharing my story in this particular area. I grew up in UK and money was never spoken about in our house. I never learned anything about money as it was never discussed in my environment- whether at home, school or with friends. I grew up believing that whatever I earnt I could spend, saving was foreign to me. Everything I earnt in my teens would be predominantly spent on Consumerism.

In my late teens and 20's, I fell in love with credit cards. As fast as I could earn I could spend. I believed that credit cards were the banks money and not mine until I received the bill. I made poor decisions and got into a lot of debt, this built up over several years. I finally threw myself into my career to pay of all my debts. Saving and investing did not occur until my mid-late 20's.

My mindset has now grown to a level that I continue to invest in my education to learn new tools and strategies that get me ahead in my finances. This is why I teach women so they can learn from my mistakes. 80% proceeds of my business goes to those without a voice.

How to Demonstrate Smart Financial Habits to Your Kids

Your kids will follow your example in many things that they do so it is important that you practice what you preach. How to demonstrate smart financial habits to your kids starts with this important understanding. Use the trust that is instinctively there between you and your kids and teach them the right way. 

Kids need to learn that money doesn't just fall from a tree, it is hard-earned and must be used wisely. Start by giving them an allowance based on their age and understanding. Make it a regular ritual and request for books to be read in exchange. Note the point I wrote about reading books and not chores. 

Chores are a part of life and NOT a paid task. If you pay your kids for chores, you are teaching your kids to be employees where they exchange time for money. If you pay your kids to read books, you enable them to expand their thinking and create an Entrepreneur mindset.

When it comes to payment for reading books, choose a day each fortnight or each month and hand over their 'pay packet' pocket money in an envelope addressed with your child's name. Show respect for the money. Ask them how their last allowance was spent so that you can get a handle on their spending habits. Get them to keep a little notebook as their 'spending account ledger'. 

Congratulate them if they are saving their money. Encourage this habit and you might even reward their habit of saving by giving them a small bonus to add to their account. Ask if they are saving for something special. If they are close to their goal and it is near a birthday you could make up the difference as part of their birthday gift. You'll know it's something special to them so it will be appreciated.

If your child does want something extra special expect, given them a book of your choice which will help them grow, a jigsaw puzzle, quiz.  Let them learn that money must be an exchange for an education and is not just available for any desire. They will learn to appreciate the things that they buy with their own money. 

Don't pamper to every whim of your child. Limit the gifts you give them and let them enjoy the gift given before allowing them to begin playing with another. Having too many at once will make them jump from one thing to another. Explain why they are not getting everything that they ask for. If they really want something that you have said no to explain why and that they must save for it themselves.

The key here is to limit the amount your child has to spend on Consumerism. Look at not only putting the money into a savings account but also teach them how to invest their savings in Index funds and stocks. I bought shares in Disney and presented this as a share certificate in a frame with their favorite character so they know they are a part owner of The Disney company as opposed to a toy they do not need.

It may not always seem like it but kids will listen to their parents so don't give in to their demands to keep up with their peers. Be firm...kids appreciate and respond to positive parenting. They need to know their boundaries. Explain why you do things but don't spoil everything by demonstrating the opposite to your kids. Instill smart financial habits in your kids and demonstrate smart habits yourself...don't blow it!

Learning Good Financial Habits Today

You understand that to build wealth you need to make goals, a budget and create good financial habits. Right? Okay, you do, but now what habits are good? Which financial habits will help you save more, spend less and get you to retirement in dignity? 

Here is a short list to get you started on making good habits to help you get to your goals. Master these first since they are the most important, then move on to some that may be a little harder or less obvious.

1. Keep a "Spending Tracker" and balance it every week. If you don't use a tracker  then how will you know how much money you have. 

It's so easy to spend more money when you don't know how much there is. So start record keeping now and balance it every week, so you always know exactly how much you have. 

There are plenty of online apps (apps are geography dependent so please check which are applicable for you) or your bank may also provide this service.

2. Spend cash. It is proven that when you spend cash, you spend less. I know for me when I put down $100 for groceries I can almost feel part of me leaving with that $100, whereas with a debit or credit card, and or payment facilitated by your mobile phone, it's easy to swipe and move on. Plus when you have cash you can physically see what you have left, rather then look at some number written down. I say just keep the credit card at home, and only pull it out for emergencies, where you may not have enough cash out of the bank account or when you travel.

Delete any mobile phone payments apps you may have, this will also prevent you from buying on impulse.

3. Use a diary and write down everything you spend each day. No matter what it is coffee, newspaper, a vending machine, if you spend it write it down. Then at the end of the day total it up. It's amazing how much that end number can be. Before I changed that number would sometimes be $30 or more. Seeing how much I was spending greatly changed what I bought throughout the day and now I save easily 400-500/month because of that. 

4. The most important thing you can do to build wealth is to start saving and do it now. Every payday, deposit a portion of it to savings. Better yet if you have direct deposit and can put it in different accounts have it go directly to savings so it's like you never even had it to begin with. 

These habits can seem hard at first and may take time to perfect. However, if you work hard and consistently build and develop these habits you will be glad you did come time to retire. These habits will even help you short term, like when the the car requires new tyres, your son's public education is going to cost $900 or even when the dishwasher breaks down. 

Article Source: https://EzineArticles.com/expert/Kayle_Rowe/573649

3 Top Secrets Wealthy Women Use to Overcome Barriers to Creating Financial Freedom

When women reach a certain age, they begin to ask the important questions: "What will my retirement look like? Will I be able to maintain a specific lifestyle? How will money affect my sense of security?" Women typically are so immersed in the present day-to-day activities that they are too exhausted to think beyond that. No, not all women, but a good amount to make a difference. 

What are the 3 big 'No-No's' that women find themselves doing that not only create barriers to financial success but actually prevent it from happening all together? 

1. Not planning early enough. How many times have you said, 'I'll start that tomorrow" but tomorrow never came? 

Financial Quick-Start: Map out your plan when you have your first experience with money. It's not too late, and it's never too early. Babysitting money, birthday money - it doesn't matter - map out your plan on how you will relate, save, spend and value the money that comes in and out of your life. Mothers, teach your daughters to become familiar and comfortable with money at an early age. The important piece is to start - your plan may change or grow, but it should be a plan that grows with you. 

Put money and credit in your own name. Money and credit in your name is a sure way to boost your sense of security. Don't be hesitant to do this. Be proud and excited about the greatness of establishing your own accounts and credit ratings. Start small with bank accounts and credit, then expand into investments. 

Putting money in your own name and knowing it is yours creates a feeling of security and independence. These two feelings build the foundation critical to living a financially independent life. 

2. Closing the door to knowledge. Women don't speak up or ask questions when the financial planner comes around (if they have one). They fear looking uneducated or embarrassed about not knowing much about money. Or there's an attitude of "it'll take care of itself."  

Financial Quick-Start: Read. Learn. Observe. Listen. Hire a financial planner. Get in the game. Expose yourself to several opinions on financial matters. Pretend you know what you are doing and the more you do it, the more you will learn. There is no shame in grabbing the money-lion by the tail and taking charge. 

Learn what will make you money AND know what wastes your money. Read, read, and read again. There are great books out there for you to learn about money decisions, investing, income streams, and financial planning. Set a priority to grow your money enough to allow you to meet with a professional planner, accountant or someone you feel safe in asking questions and learning where to start. 

The main purpose of knowing everything about your money is for you to make informed and responsible money decisions that will help your financial future instead of hurting it. 

3. The "I-couldn't-handle-money-if-I-tried" thinking. This is thinking that will land you in the poor house. Actually, this is a defence mechanism designed to shield you from knowing the truth. The truth may be good, bad or ugly, but it's still the truth. And sometimes knowing the truth around your money can be scary. 

Financial Quick-Start: Grow your confidence. To grow money, you have to feel good about it. And to do that, you must get in touch with your money. When control goes up, worry goes down. When worry goes down, security goes up and so does confidence. This means balancing your finances on a regular basis, knowing your rental or mortgage agreement at all times, opening and paying all bills on time, and reading your quarterly retirement planning reports. 

You should expect more than the crumbs falling off the table. But, gosh, you say, I have too many bills. Well, make a budget (aka spending plan) and stick to it. Sacrifice whatever is expendable (eating out, movie tickets, that cool smelling bottle of perfume) so you can get yourself into a power position with your money. 

Decide what you can pay yourself each month then do it - no matter what! Start with 10% after taxes but no less than 5%. Before you know it, the dollars you are paying to yourself will start to add up! 

The main purpose of paying yourself first is so you learn that you are more important and deserving than anything you could buy.

Article Source: https://EzineArticles.com/expert/Karen_Keller,_Ph.D/581146