It is sometimes sad to see that women (and even men) work so hard, earn a decent wage and still live from paycheck to paycheck. Why is it that someone in a similar situation is far ahead in their financial game, while some others are way behind?
If you need a financial makeover, here are seven secrets to transforming your financial life like a pro.
- Work Smart not Hard. We have all heard of Tim Ferris’ 4 Hour work week. There are people who work four hours a day generating more income than people who work eight hours or more a day. This is because they work SMART. They choose to put their efforts into something that will generate income not based on their time but based on their talent. It can be hard to quit your job straightaway, but investigate what else lights you up; take it on as a side project and work hard in the initial years. Acquire new skills along the way and in a year or two when it all pays off, you will be one of them.
- Use your energy wisely. As women, we often do not value one of our most important resources – our energy. Our energy source is a combination of mind, body and spirit. We need to have a positive outlook, eat the right kind of food at the right time and nurture our spiritual side to maintain a good balance and have plenty of energy. Be very conscious of the above and be kind to yourself. It may feel like you need to fill your diary with things to do, but chances are you are going to end up procrastinating and feel guilty later. Remember to do the important tasks first (prioritise the top three things) and delegate the rest.
- Save, no matter what. Most of us tend to spend most of what we make, even though we want to save. I am not sure if we are programmed that way as women, but when we see a sign that says “SALE”, our goal of saving is usually not the first priority. Cut up your credit card and throw it away or freeze it in a block of ice in the freezer. Find ways to automatically save a part of your income and never touch your savings, no matter what.
- Budgeting. Budgeting is a very simple principle that many women want to stick to, but fail to follow. As women, we have to admit that it is quite challenging for us to step into a grocery store and stick to our grocery list (especially if you take your children with you). Fight the impulsiveness to spend on whatever you fancy and allocate your resources accordingly.
- Tracking Progress. All financially successful women know their numbers and track their goals regularly. If you think it is not important, think twice. If you don’t know where you are now, how will you go where you want to go? If you feel that you are behind everybody else, then it’s even more important to start now. Set out your goals, with a timeline and track your progress at least every week or every time you expect to reach a milestone.
- Review your mortgage. If you have the set and forget mentality, get out of it. With the changes happening in the mortgage industry, you should be doing due diligence and also use the assistance of an expert mortgage broker to help you find the best deal.
- Insure Yourself. Do not consider insurance as ‘just another bill to pay’. I can say it is the most important bill to pay when you have an emergency. However, do not DIY or just choose the cheap option. Go to a professional who can help you understand how much insurance you need and suggest the best structure.
With EOFY almost here, there has never been a better time to know these secrets and put it into practice. Make a mid-year resolution to put your financial life back on track!