Ignite Your Wealth

Ignite Your Wealth with Financial Intelligence

The best way to ignite your wealth this year is with solid financial intelligence.  Often we hope that our money situation will get better. Yet we don’t really know what to do. So make a commitment to really learn about money in 2018.

When you treat your money with respect, it will call its friends to flood you with more wealth.

Envision Your Future

In a prior blog, I talked about getting real with your money. You need to know where you are right now today.

There’s no shame whatsoever. So go ahead and leave all guilt outside. Maybe it will find someone else to pull down.  You’re going to change your life and make it even better.

Next, it’s time to think big. Actually, let’s think really big! Let’s 10X your dream future.

  • Where do I want to be in one year?
  • Where do I want to be in three to five years?
  • And what about ten years?

Write all of this down and connect to it.

Next, let’s go a bit deeper.

  • What is my deepest want?
  • What would I like to achieve in my lifetime?
  • What am I great at?
  • What would I do if I inherited five million dollars?

Are you thinking big now?

I want you to be excited before we go on to the next section.

Budgeting

People always groan at the idea of a budget.  It doesn’t have to be that way.

You should create a budget that helps you rather than restricts you.

Even though you looked at your expenses already, it’s important to put them into a budget so you can see how everything works together.  First, you should plan out your big rocks like rent or a mortgage.  Then plan out your other regular expenses.

When I say “plan,” what I mean is to take a calendar and plan out when the payments are due.  Then plan when you get paid. Hopefully, there’s enough money to pay the bills when they’re due.

Then it’s time to see what’s left. If it’s not much, you may want to choose to adjust your flexible expenses and find ways to bring in more money. Sometimes, we have to make tough decisions such as bringing in lunch instead of going out with the crowd. Or we have to give up our morning coffee.

Some experts believe that you manage money on the little level. Others believe in the larger level such as getting cheaper housing or a cheaper car.

You need to do what’s right for your situation. I am recommending that you be aware and mindful of your situation and be conscious of your choices.

Finally, you should put money aside for savings and periodic expenditures. If you pay your homeowners insurance once a year, then you will want to build up the cash reserve in a savings account so that you’re not scrambling when it’s due.

The same holds true for holidays. You’re best choice is to save up a little every month so that you don’t go heavily into credit card debt during your holiday.

Understanding Cash Flow

If you’ve ever run out of money at the end of the month, or been unhappily surprised by an expense, you need to learn about cash flow. Remember how I suggested you plan out when money comes in and when money goes out?

That’s your cash flow.

Every week, you may want to check in to be sure you’re not overspending on extras and impulse purchases compared to what will be due next week.

Increasing Your Savings

The best way to save is to take the money out off the top before it goes to your chequing everyday account. You won’t spend what you won’t have. Then connect to how great it will feel when you have the money for

  • Buying a new home
  • Getting a new car
  • Planning a special trip
  • Planning for your retirement
  • Starting an emergency fund
  • Starting a business
  • Paying off debts
  • School fund for your children
  • Planning a perfect wedding

Experts often say to have three months worth of savings for an emergency fund. What you really need is to be able to cover your expenses if you lose your job. And that means that you need to evaluate how long it would take you to find another job.

Thus, if you’re a high-level executive, it may take you more than three months to land a comparable position.

And it never hurts to have money set aside for emergencies like if your air conditioner goes out during a heat wave.

Increase Your Education

If you’ve got too much credit card debt or were struggling to create a budget, there’s help. You could go to your local library and check out books or listen to podcasts on personal finance.

  • The Barefoot Investor, Scott Pape
  • Robert Kiyosaki
  • YNAB. (You Need a Budget)
  • Jesse Macham’s podcast

Look for classes on managing money near you. If you’re not sure where to start, you can check meetups.com or your local community centre. 

Additional Tips to Ignite Your Wealth

Gift Giving Doesn’t Have to Hurt

Plan gifts so can purchase when on sale. Keep your eyes peels peeled throughout the year so don’t get swept up in the buying frenzy. Also, don’t hesitate to talk with others about changing how you exchange gifts. Perhaps they would appreciate saving money as well. Or perhaps you could make a gift for them.

Reduce Impulse Spending

Manage your money rather than react to it. That’s why having a budget and understanding your cash flow is essential. If some friends want to go out for dinner or drinks, you will know if you can easily afford it right now.

Set up a 30-day rule. If you see something that you want to buy on impulse, choose to wait thirty days. Then ask yourself again if you really still want it.

Another great tip is to create a shopping list and stick to it. You can use shopping lists for items other than groceries too. If you know you need to get two blouses, then you won’t be tempted to shop the whole store and end up with shoes and trousers that you didn’t need.

Save on Food

Look for ways to save money on your common household items like with InnerOrigin. (Let me know if you have any questions about InnerOrigin)

Always plan your meals. And if you like, cook extra to use for lunches the next day.  One day a week, try to shop from your pantry and use up what you have. That saves you money and keeps down the clutter.

Have you ever accidentally bought too much of one item? I once bought two bags of brown rice on sale, and the then forgot about them. So when rice went on sale, I bought two more bags.

Some people keep an inventory of what’s in their freezer and pantry to help them plan their meals. You can find printables as well as apps for smartphones. Find the system that will work best for you.

And lastly, there’s the sage advice to never shop on an empty stomach. Too many snack items end up in your trolley.

Reduce, Reuse, Recycle

I bet you donate a lot of items. It’s wonderful how our society cares for the environment, and we’re donating rather than throwing out items.

You can complete the cycle by shopping at your local thrift and surplus stores. You never know what you’re going to find.

A thrift store may have a small kitchen appliance that you want to check out. Slow cookers are a great way to purchase inexpensive meat and turn it into a fabulous dinner. But not everyone likes the taste and texture of food that’s been slow cooked. It’s better to buy one inexpensively and test before investing in an appliance that is best suited to you.

If you want to know more watch the movie Minimalism.

Reward Yourself to Ignite Your Wealth

It’s essential that you celebrate your success in everything that you do. When you achieve a financial milestone, you should do something special to acknowledge it. You don’t have to spend money. You could go on a hike bush walk or a picnic.

You can go low cost such as a massage or pedicure.

Or perhaps one of your goals was to save up money to try out a new, hot restaurant in town.  Enjoy every second of it because you deserve it.

What’s your favorite tip for igniting your wealth? Leave it in the comments.

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