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The cashless envelope method is a fabulous way to jumpstart your budgeting process.
It is proven that the cash method will help you to save money, get out of debt, and make sure you’re spending your money that you actually have to spend.
There is no overspending allowed with the envelope system.
When using envelopes whether with cash or cashless, if you are out of money, you’re out of cash to spend.
In today’s society, more and more transactions are being done online, which makes using the “traditional” cash envelope system very tricky and complicated. So many people are looking into alternatives – specifically using a cashless envelope method.
Personally, a cashless envelope system is something that we have used for many, many years. As much as I would like to say that I’m great with cash. I’m not. I tend to misplace it more often than I prefer. Also, I do enjoy my credit card rewards that I receive the extra couple $1,000 helps to pay for quick travel getaways.
Today, in this post, you are going to learn how to be successful with the cashless envelope method. We’re going to outline how to use the cashless envelope system, provide the trackers and templates that you need.
Then, you can start budgeting with success today.
How do you Use envelope System without cash?
The method of using the cashless envelope system is much like the traditional cash envelope system, except you’re actually not physically stuffing your envelopes with real cash.
You are tracking your spending either with a printable template or a spreadsheet. Whatever method you choose it doesn’t matter. It is the basics of cash system that matter.
The principles are the same. You cannot spend more money than you allocated for a certain category.
Later in the post, we will discuss how to track your “cash” using either a printable template or a spreadsheet.
Reasons to Not Use Cash
There are many reasons you may not want to have cash on hand. Here are some of the most popular reasons not to use cash:
It gets lost. Personally, I am guilty of misplaced cash. Thankfully, it has always appeared. But, it is hard when you can’t find the money you need to make purchases.
It gets stolen. Getting your wallet stolen sucks. Getting your wallet stolen when you just stuffed your envelopes with cash is even worse. You are left without spending money for a week or two.
You can’t earn rewards. A very simple way to earn extra money is with rewards on your credit or debit card. You can earn 2% cash back by paying with these cashless methods.
Counterfeit money is a real problem. Unfortunately, there is more counterfeit money in circulation than you would believe. The cash withdrawn from the bank is always checked. But, the change you receive from stores may be counterfeit.
Bacteria on cash. Have you thought about how many people have touched your $20 dollar bill? There is a lot of stuff lurking on cash and coins. Nowadays, many companies are not even accepting cash.
There are many more reasons you may not like to use cash. Plus you need to account for online purchases where another payment method is a must.
Now, you are going to learn to manage money by using the cashless envelope system.
How to Use the Cash Envelope System Without Cash?
Just like the traditional cash envelope system, you are allocating money to each of your categories or envelopes.
Instead of actively putting money in envelopes, you are tracking your spending with a spreadsheet, an app, or a paper cashless envelope tracker.
First, you need to decide what cash envelope categories you want to track. Typically, these are the most popular envelopes to use “cash” for:
Groceries
Eating Out
Clothing
Gas
Gifts
Entertainment
Haircuts / Beauty / Personal Care
Pocket Money or Slush Money
However, you can use as many of the budget categories as you want.
1. Create a Budget
The first step to proper money management is to make a budget. First of all, a budget isn’t meant to be constricting, it is a money plan of how you want to spend your money.
By creating a budget, you are prioritizing where you want to spend your income.
It is a good thing to have a budget even though 69% of society doesn’t know how they spent their money last month (source).
If you have never created a budget, then I would highly recommend our Budgeting Course that goes into detail about how to properly create a budget.
Related reading: How to Make a Budget in 7 Simple Steps
2. Track Purchases Immediately
When you make a purchase, you need to write it down on your cashless envelope tracker – just like you would when using cash. You need to see the money being subtracted from your account.
This is what makes you understand the impact of every single purchase you make over the month.
If you can’t do it right away, save the receipt and write it down when you get home. Just don’t forget to do it!!
By waiting more than a day to track purchases, you may get caught over budget on your envelope budget.
You must stay on top of your envelope budgets!
3. Money is Gone, It is Gone
Don’t get caught with overspending! That is a quick cycle to end up in debt or even worse “borrowing” money from other envelopes.
This is where the rubber meets the road. That popular saying will make sure you don’t continue spending money once you are out of money.
The temptation to spend money will happen over and over. You just need to find ways to stretch what money you have left or be patient until you have more money from your next paycheck.
Make adjustments in the next month for categories where money always seems to be gone early.
4. Money if Leftover, Then Roll it Over
This is why the cash envelope system works so well.
It helps you to create sinking funds. When using the cashless envelope method, it helps you to have one BIG account with all of your sinking funds collected together.
When using a spreadsheet or printable, you can visually see how much money you have rolled over from month to month.
Here is a great example: You set aside $50 a month for gifts. But, only spend money when for birthdays and Christmas and not every month. Typically, you would roll your money over to the next month. So, when Christmas comes you have more money to spend.
For those, who are actively trying to get out of debt, you may take your money left over and put it towards debt. Just make sure those are discretionary accounts that you don’t need money for in future months (spending money would be a good example).
You don’t want to be caught without money set aside for a big bill.
virtual envelope system
The virtual envelope system is the wave of the future. The use of cash is going away.
While cash in the bank is still king, the actual physical transaction of paying with cash is going away. The use of debit and credit cards continue to increase.
You need to have a virtual envelope system in place, so that way you can track your purchase purchases in person, online, and those that are reoccurring.
With the virtual envelope system, you will use a spreadsheet that tracks your spending with a couple of inputs from you. The other option is to use a cashless envelope app with a monthly fee like Empower or Qube Money.
Thankfully, here at Money Bliss, we created a virtual envelope system that works perfectly for cashless budgets and creates sinking funds for you. Learn more about the cashless envelope spreadsheet here.
cashless envelope template
A simple way to start using the cashless system is with free cashless envelope trackers. There is nothing super fancy about the system.
You just have to track your expenses.
This is exactly how do you do the envelope without cash.
Here is a perfect example of how to use the cashless envelope template:
These are great for a mom on the go! Simply stick them in your wallet and write down your purchases.
Ready to Use the Cashless Envelope System?
While Dave Ramsey has created a movement of using cash envelopes. It is becoming harder and harder to use in a cashless society. So, you must find something that works for you.
Personally, we prefer the virtual envelope system. It allows the flexibility of being cashless while still benefiting from the cash envelope system.
To be successful, you must track your spending.
Transitioning to a new system will have some quirks, but over time you will get used to it. The pros are you will live with your means. Then, you move away from living paycheck to paycheck.
By tracking your spending with the cashless envelope method, you are putting your money management forefront and can see your pain points with money.
You can download your cash envelope trackers from our free printables area.
For those who want to use the cashless envelope spreadsheet, then enroll in our in-depth budgeting course.
Know someone else that needs this, too? Then, please share!!
Did the post resonate with you?
More importantly, did I answer the questions you have about this topic? Let me know in the comments if I can help in some other way!
Your comments are not just welcomed; they’re an integral part of our community. Let’s continue the conversation and explore how these ideas align with your journey towards Money Bliss.
Inside: Becoming financially sound is the first step towards proper money management. Learn how do I get financially sound in the next 30 days.
One of the smartest moves that you can make with your money is to become financially sound.
This is the one concept that should be taught before you even move out of the house or start your first job.
However, most of us wonder what it truly means to be financially sound.
Before we dig in and answer that question, let’s discuss the benefits of being financially sound.
Being financially sound means that you are wise with your money.
You exercise proper money management techniques and consistently save for your future.
While these concepts are very simple in thought, many people struggle to become financially sound. Most of the reason why is people typically start in debt way before they even start to earn an income.
In this post, we will detail exactly what you need to do today to become financially settled. Plus, the good news for you is you can accomplish this quickly – specifically become financially sound in the next 60 days.
Are you ready to become financially sound?
Why is it Important to Be Financially Sound?
One of the things that we constantly stress here at Money Bliss is by having money, the doors of opportunity open up.
When you don’t have money, you are left either going into debt, full of stress, exhausted by worry, and constantly wondering if you can get out of your current situation.
You need to learn how to become financially sound.
Growing up, you may have lived in a household that was constantly broke and far from examples of proper financial management of money. So, the concepts of becoming financially sound are more intriguing to you and important to learn.
On the flip side, you may have had parents who manage their money so well, you never had to worry about it. Yet they never taught you those solid money principles.
The most important reason to be financially sound is to have the money you need to do the things that you need (and want) to do.
Whether that is paying your bills, going on vacation, or giving back to a charity.
The other reason is more is a feeling of being financially sound. By becoming financially sound, these types of situations will be your life:
Not constantly stressed about money.
Do not have to worry about stretching money to your next paycheck.
Actually have money at the end of the month.
You can sleep at night knowing your finances are in order.
To be financially wise with your money, you need to prioritize your personal finance situation.
Over time, you can slowly adapt and improve your money position over time.
How do I get Financially Sound?
The good news is you can become financially sound in less than 60 days.
Becoming financially sound helps you understand why things need to happen and what needs to be done, and then put the steps in place to accomplish them.
At this stage, it is more of a money mindset change than it is about reaching specific financial goals.
1. Emergency Fund in Place
An emergency fund is just that – money set aside for an unplanned, unknown, catastrophic event that you need money for.
Ultimately, the goal is to never touch your emergency fund. But you have money set aside, just in case.
The “just in case” you want a new pair of shoes, or you want to take that vacation with friends; that is not an emergency.
A true money emergency is when you have not established a sinking fund available and you need to have unplanned maintenance done on your car. Another example is one of your loved ones is sick, and you need to take time off work to help care for them.
An emergency fund is money set aside for an unplanned, unknown situation.
By having an emergency fund in place, you can weather the storm and get through it without hurting your monthly finances.
2. Stop Living Paycheck to Paycheck
Living paycheck to paycheck means you have to wait until the next paycheck to take care of your bills and obligations. That comes with a lot of stress and worry.
By quitting a lifestyle of living paycheck to paycheck cycle, you can get ahead of your bills by at least one month.
Can you imagine the possibilities if you break the cycle of learning how to stop living paycheck to paycheck?
One of the best ways to do that is to actually have a spending freeze and to track your spending. That will help you eliminate unnecessary expenses while you get your finances on track.
To be able to get ahead by one month of a paycheck will make you financially sound.
3. Spend Less Than You Make
This concept is very simple…
Your expenses are less than your income.
However, many of us live a bigger lifestyle than we can afford and this will cause you financial detriment.
You must learn how to live below your means! This is different from within your means.
When you live WITHIN your means, you are spending exactly what you bring home in pay.
By living BELOW your means, you can save money and increase your savings percentage each year.
If you spend more money than you make, you are absolutely financially unsound.
4. Insure Yourself Properly
One of the biggest financial mistakes is not having the proper insurance that you may need.
Yes, the purpose of insurance exists as a security blanket in case something were to happen; you never know when your insurance may come in handy.
For example, you might have a horrible windstorm come in and a tree falls over onto your car. Well, that would be covered under your car insurance policy (or possibly the homeowner’s property where the tree fell).
Maybe your loved one got sick unexpectedly and did not survive, there would be a life insurance policy in place to help the heirs financially move forward with that loss of income.
In order to be financially sound, you need to review your insurance policies at least yearly.
You need to make sure that you are properly covered with insurance. Various types of insurance you may need include home, auto, life, health, disability, or long term care.
Always review your policies to see if another carrier is cheaper, you need to increase your insured levels or see if there are any more discounts that you qualify for now that you have not qualified for before.
5. Invest Time in Learning More about Finances
You need to become a constant learner with money.
If you put learning about money on the back burner, you will never reach your money goals that you have for yourself and you are guaranteed to never have a net worth of millionaire dollars.
You must invest time and energy into learning about personal finances.
The great thing is free to go down to a local library, and check out some of the top all-time best personal finance books available. Make it a goal to read one book a month. And if that’s too much, then make a goal of reading one money management book every quarter.
Here are some of the best ways to become a constant learner:
Join our email list for Money Bliss. We constantly send out great tips to help you advance your situation.
Listen to a podcast.
Choose one of the best finance books and find unparalleled success with money.
Find somebody on YouTube that you want to watch and learn.
Invest in the top investing course and learn how to win in the stock market.
Here’s my challenge to you… If you are willing to spend an hour, two, or more hours entertaining yourself with Netflix, sports, or YouTube, then you have the time to invest in your financial future.
6. Eliminate Wasted Money Situations
One of the most common mistakes that I see happen over and over is the amount of wasted money that happens in our society.
If you were letting dollars slip between your fingers because you are too lazy to cut out expenses, then that means that you are not financially sound.
Being lazy with your money will leave you financially unsound.
Do you know how you spend your money? Are willing to pay a higher price for something knowing you should actually pay less for it? Do you continue subscriptions because you do not want to call customer service and cancel?
If so, then you are giving away your hard-earned cash.
Start with a money mindset change.You work hard for your hard earned cash.
So, you need to quit wasting money and start keeping as much of it as you possibly can. Learn how to save money fast on a low income.
7. Pay Yourself First
This is the best money management tip I got from financial experts.
Pay yourself first.
That means when you get paid, you instantly move money into a savings account, an investment account, or a retirement account.
Start planning for your future today. You don’t wait until tomorrow. You don’t wait until you have more money.
I can tell you from personal experience… my biggest money mistake was waiting until I thought I had enough money to start saving and paying myself first. And now, thanks to the compounding interest, I have to contribute WAY more than if I would have just started saving money at a younger age and started investing it more aggressively.
8. Get Out of Debt
Make a plan to get out of debt.
I am not saying right now that you need to get out of debt in the next 30 to 60 days. Specifically, start to craft a plan to help you get out of debt shortly.
You are unable to move forward financially if you have debt on your shoulders, it will constantly be dragging you behind. You will not be able to increase your bank account balance and net worth like you would want to when you are in debt.
Figure out ways to get out of step and stick to that plan to pay off that debt.
It may take you three months to pay off your debt, it may take you a couple of years to get out of debt. The amount of time that it takes to pay off your debt does not matter. It is the fact that you were making a plan to actually pay off your debt.
And then later on, when you move to become financially stable, that is when your debt is completely paid off.
If you are reading this and saying “well, I don’t have to worry about this, I don’t have any debt.” Stay that way to be financially sound by saying no to debt.
Don’t go into debt, any more than you already are today.
Debt Resources:
9. Increase Your Income
A great principle to help you with money management is to make more money.
The more money that you have in your income bucket, the more you are able to save. Then, you have money available for other things that you want to do in life.
Find ways to increase your income:
Whatever it is you need to do, you need to find ways to increase your income.
10. Make Smart Financial Goals
One of the steps to becoming financially sound is knowing where you want to go next. And not be satisfied where you are today.
You want to learn to be financially sound and then move towards becoming financially stable, and then, ultimately financially secure. It’s a three-step process to get to where you want to go.
You can start today by making your first smart financial goal.
For me, my first one was starting an emergency fund. Then, I moved on to getting out of debt. Currently, my goal is to increase my savings percentage each year.
My smart financial goals do not have to be yours. You have to do what you want to do and makes the most financial sense for you.
Financially Sound Means Proper Money Management
Money management is not taught. More often than not, it is learned typically through the case of hard knocks.
One of the concepts above that we consistently talk about is making learning about personal finances a priority.
And that’s because you can read everybody else’s stories and not make the same financial mistakes. That my friend is huge.
If you want to maximize your finances the best way possible, then learn from others and do not make the same financial mistakes.
Learn the concepts of money management:
How to save consistently
How to reduce your expenses
Stay clear of debt
Live within or below your means
Become a smart investor and so much more.
Here on our site, Money Bliss, you can find plenty of tips to help guide you.
Imagine Your Life as a Financially Sound Person
For just a moment, I want you to close your eyes and think how life is today for you.
Are you filled with stress, worry, and anxiety? Not sure if you can pay rent the next month or have enough for food? Maybe you aren’t making the progress financially that you want to.
If that is you, think about what your life would be like if you became a financially sound person.
Maybe you’re reading this and you’ve been blessed financially, but your spending is still out of control. Even though you make a six figure salary, you are still scraping by at the end of the month and waiting for your next paycheck.
Imagine what your life could be like if you were a financially sound person.
It all comes down to basic financial money management.
You have to spend less than you make and you have to save money for a rainy day.
You can accomplish anything as long as you put your mind to it.
Now, are you wondering…. When can you say that a person is financially stable?
Know someone else that needs this, too? Then, please share!!
Did the post resonate with you?
More importantly, did I answer the questions you have about this topic? Let me know in the comments if I can help in some other way!
Your comments are not just welcomed; they’re an integral part of our community. Let’s continue the conversation and explore how these ideas align with your journey towards Money Bliss.
This post may contain affiliate links, which helps us to continue providing relevant content and we receive a small commission at no cost to you. As an Amazon Associate, I earn from qualifying purchases. Please read the full disclosure here.
For many people, budgeting can be really tedious, and feel like it traps their freedom and spirit. While there are plenty of advantages of budgeting, it is nice to have one area of free-spending with money.
That is where a slush fund comes in.
A place to spend money with freedom and not worry about ruining your budget and the inability of not being able to reach your money goals.
When you work hard for your money, it is hard to be disciplined with your money every single step of the way.
You want to reward yourself and treat yourself! Specifically with no questions asked.
That is where the slush fund comes into play.
What is a Slush Fund?
The definition of slush money or pocket money is simple – money set aside to spend as you see fit.
A reserve of money set aside for an unknown and undetermined purpose.
Everyone will have their own meaning for their personal slush fund. That is because we all have ways we want to spend our little reserve of fun money.
And this one thing can save a marriage and many, many arguments!
Slush Fund Examples
Each person will have their own purposes for spending their fun money. Here are some slush fund examples:
Spa Treatments
Car Accessories
Lunch Dates
Helping others
Music or cable subscription
Golf outings
Happy hour fun
Crafting
Honestly, the best slush fund example is something both people do not want to include in their budget. It could be something they do not agree with, or the cost, or the need.
Did you know all of the names for the slush fund?!?! Call it what you want… the purpose is still the same:
Pocket Money
Spending Cash
Pocket Change
Allowance
Petty Cash
Kitty Fund
Chump change
Just pick your favorite name for it and understand it is money set aside to spend how you choose.
Regardless of what you call slush fund money, one meaning holds true.
It is a small amount of money earmarked for one person to spend as they choose.
How to Create a Slush Fund?
These are the four rules of slush fund money. It is not hard or difficult to create a slush fund.
You just need to decide in advance how a few line items we will cover shortly.
Nothing complicated. Pretty simple. You just need to follow them.
1. Agree on amount Given to Slush Fund
Every month or week a predetermined amount is given out for each person’s slush money. Remember, the slush fund meaning is their reserve of cash to spend or save as they deem fit.
In the Money Bliss Cents Plan, there are 3 lines dedicated to Slush Fund Money – His, Hers, and Kids.
Slush fund money is just as important for adults – probably more important than any age group.
Everyone in the household can have a little chump change to spend as they see fit. So many times, we hear of using pocket money for kids. However, very few people use it as adults.
2. Fun Spending Your Way – No Questions Asked
The biggest ground rule is no questions can be asked about how or why you spent your slush fund money in this or that way. Period.
Don’t test the boundaries. Respect the rule of no questions asked.
It is hard for a couple not to argue on every single line when they make a budget. So, agree on a slush fund amount and stop pestering the other party on how they spend their money.
3. Cash Only (Or Seperate Cashless Account)
Spending must be in cash. And cash only. At the very minimum, that chump change account is only used for your fun spending.
The temptation to overspend is way too great especially when it is spent on ourselves. Staying away from credit cards is necessary. Especially because it helps with #2 rule of no questions asked.
Here are great options to help you succeed:
4. No Judging
Human nature is quick to judge. Someone spent their money in a way you don’t agree with and you want to speak up to say something.
Not up to you to judge.
Slush money is meant for whatever you want to spend money on. This is not the time or place to be judging how to spend under $20-100 per month.
Plus – Don’t Be an Idiot
This isn’t the time or place to be sneaking behind your significant other’s back. If you are unable to honestly say how you spent the money, then you are on a slippery slope.
Honest and open communication is the key to success.
This isn’t an opportunity to start hiding your actions.
Bonus Tip for Kids –
***A side note on the Kid’s Slush Fund Money…this is how we introduce paying commissions to our kids for jobs done around the house.
That in itself is another post for another day. But, the same rule holds true, we can’t judge how they use their “spend” money.
Advantages of Slush Fund Money
There are many benefits of using a slush account when you are budgeting money. This is especially true at the beginning of your proper money management and budget journey.
You need freedom in your life if not you will be so constricted that you will not meet the smart financial goals you planned for yourself.
1. Agreed Upon Amount
First of all, the amount of money designated to each person’s slush fund money is set at the beginning of the month (or week). Everyone agreed to the budget, so no changing money in the funds.
Sit down and discuss what amount is doable based on your situation. This is based on yourbudget.
The key is to stick to the agreed amount of money. Use cash to stick to the agreed-upon amount.
2. No Arguments
Remember, no questions can be asked!
No judgments can be made!
A very simple way to steer clear of arguing. One person spends their money before the first week of the month is up – more power to them! Another person saves their slush fund money for a bigger purchase – high five!
There are bigger things to discuss in the journey to financial freedom than how someone spends their slush money.
Pick your battles.
Money is one of the leading causes of divorce. Save your marriage and use a slush fund account. That right there is one of the huge advantages of pocket money.
Related Post: How to Talk about Money with your Spouse
3. Breath of Fresh Air / Freedom
Many people find living in a budget or Cents Plan very constricting and overbearing.
This is why slush fund money is SO very important. It provides a breath of fresh air. A moment to spend money and not worry about the money spent.
Freedom to savor life’s little moments. Enjoy!
Especially if you are struggling to make ends meet, this is a big advantage of pocket money.
4. No Guilt
The last advantage of slush money is not carrying guilt. Regardless of how an adult decides to spend their pocket money, there is no guilty feeling about buying x, y, or z.
Remember rule #3 – no judging, you are free to purchase whatever your heart desires and not be overwhelmed by guilt.
Disadvantage of Slush Fund Money
After listing out all of the advantages of pocket money, you may be thinking there have to be disadvantages, right?
Honestly, the only disadvantage is it is one more category to track and separate out money.
However, that is menial given the advantages of slush money.
Related Post: Complete Guide to Sinking Funds; Why They are So Important?
Ready for Your Slush Account?
This is a key point to remember…
Regardless of where you are on your journey to Financial Freedom, slush fund money is utterly important.
The key to money is to build a strong foundation. That includes how you spend money, how you save money, and how you discuss money.
Even if you start at $5 or $10, you will begin to reap the benefits and advantages of pocket money. The small amount of money will change your perspective and how you relate to money.
As you get further in your journey, you can increase your slush amount to $100+ of fun money!
Just remember the rules of slush fund money in order to see the advantages in your household!
Further reading:
From all of the free and paid budgeting apps, here are our top budgeting apps to check out!
This section may contain affiliate links, which helps us to continue providing relevant content and we receive a small commission at no cost to you. Please read the full disclosure below.
Empower Personal Wealth, LLC (“EPW”) compensates Money Bliss for new leads. Money Bliss is not an investment client of Personal Capital Advisors Corporation or Empower Advisory Group, LLC.
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Know someone else that needs this, too? Then, please share!!
Did the post resonate with you?
More importantly, did I answer the questions you have about this topic? Let me know in the comments if I can help in some other way!
Your comments are not just welcomed; they’re an integral part of our community. Let’s continue the conversation and explore how these ideas align with your journey towards Money Bliss.
Inside: The exact habits you need to learn how to be financially stable. Financial stability is when you are in control of your finances. Make sure you have these money habits!
Are you ready to move from financially sound to financially stable?
Well, the good news is this is something you can easily accomplish and we are going to show you exactly how to do it in this post. Learn over thirty simple traits to prove to yourself that you are financially stable.
One of the great things about being money financially stable is it means that you are less worried about money. You are established with your finances and you are consistent on how you spend and save your money.
It is a great feeling to be financially stable because you know that your bills are taken care of and everything that you want to spend money on that you actually can!
The Money Bliss Steps for Financial Freedom is a guide to help you become financially independent. Along your path, you will go through many different journeys and many different seasons, but it is a great feeling to know that you are in a good place financially.
Becoming financially stable is something that anybody is capable of doing.
It just takes determination, a growth mindset, and a desire to be wise with your money.
This post may contain affiliate links, which helps us to continue providing relevant content and we receive a small commission at no cost to you. As an Amazon Associate, I earn from qualifying purchases. Please read the full disclosure here.
What does Financial Stability Mean?
Financial stability is when you are confident in your personal financial situation. You have money to pay monthly bills, set aside for big purchases, invest in your future, and be able to sleep at night.
When you can do these above things, that is when we can say that a person is financially stable.
When you define financial stability, the definition should motivate you to improve your money situation because the more you work towards becoming financially stable, the better the opportunities present themselves.
It is one step up from being financially sound and moving closer to financial security.
Another way of saying financially stable is of good financial standing.
Overall, the financially stable meaning is you have made wise decisions that will ultimately let you live the life you want. One step closer to financial freedom.
How to Be Financially Stable
The good news is you only need to do three steps to become financially stable plus they are not complicated.
This is exactly how do you become financially stable…
It is just a habit that you need to start doing.
If you have bad habits with money, then you are not going to have the success with money that you need. If you have good habits with money, then you will end up becoming financially stable.
Just a side note, If you need a good book on changing bad habits into good habits. I highly recommend Atomic Habits by James Clear. It is a great book to help you change the habits that need to change, and start to live the life that you want.
Now, back to the three steps to becoming financially stable.
If you want to learn how to become financially stable, then this is what you need to do.
1. Pay Yourself First
This is the most important habit that you can do to become financially stable.
Many times, I feel like I sound like a broken record about the importance of how you need to pay yourself first. It doesn’t matter if it is your very first job in high school, starting out at 21, or quickly approaching your 50s, you need to pay yourself first today.
Take your paycheck and automatically save a certain percentage.
If you have never saved before start with 10%.
If you know that your spending is out of control plus you have the income to save a higher percentage, then plan to save 20-25% ot your income.
When you first begin to save, the goal is not the amount you save; it is about the first time that you begin to save.
It is about proving to yourself that you are capable of saving and seeing that account, increase over time will continue to motivate you.
So, if you want to be financially stable, then you must pay yourself first. Set up a separate savings account or an investment account where you will put that money.
2. No Debt
Second, no debt. Period.
If you cannot buy something in cash, then wait until you have the cash available to make the purchase. Do not use debt just because you have access to credit.
If you want to be financially stable over the long term, that means you must eliminate consumer debts.
Now, before you freak out and say, “I can’t be financially stable because I have so much debt that is dragging behind me and holding me back.” Don’t freak out. You can make a plan to get out of debt.
By getting out of debt, you are proving that you are on the path to becoming financially stable.
In the meantime, you just don’t go into any more debt.
If you are in your 20s, steer clear from debt and do not get into the debt trap.
The Trickly Mortgage Debt Conversation….
Because owning a house comes with a price and it comes with a premium since there is a cost to upgrade it, pay property taxes, and so much more. Plus this varies greatly in an HCOL vs LCOL area.
Do your research and figure out is it more cost-effective for you to purchase a home and pay the mortgage payment or is it better to rent and not have the responsibilities of being a homeowner. This is a personal situation that you must determine what works best for you and it is very location and market driven.
For example, we bought in a high cost of living area before the prices skyrocketed. Thus, our mortgage is way less than the cost of rent. So for us, we are still financially stable because we have a mortgage because it is cheaper than rent (and by a lot).
On the flip side, if you are just starting out and trying to purchase a home, it may be more cost-effective for you to keep renting to stay out of debt and become financially stable quicker. Then you will be able to reach financial independence faster.
3. Invest Your Money
The last piece to becoming financially stable is you must invest your money.
This is not the time or place just to be stuffing money under the couch or in a savings account that is earning .02%. You need to invest your money in the stock market.
The best way to invest is on a consistent basis. Every paycheck you invest a certain amount consistently. It does not matter if the market is up or the market is down.
The returns from investing will be greater than doing nothing with your money.
Doing nothing with your money means that you are actually losing money when you account for the cost of inflation.
So, you must invest your money.
One of the types of income is passive income, and you can earn passive income through investing.
A huge step to becoming financially stable is to diversify your income. This may not be as important to you today, but if you are in that category of “I don’t want to work anymore” or retirement is on the horizon.
Your financial future can be secured through investing in your portfolio.
Recap – How to be Financially Stable at any Age
You can become financially stable at any age – 20, 25, 30s, without college, or even in your teens at 17 or 19. You can even be financially stable with a low income.
The formula is still the same for everyone.
These are the three things you must do for financial stability:
Pay Yourself First
No Debt
Invest
If you are serious about wanting to be financially stable, these are the three steps that you need to take. It is not rocket science.
It is very simple, clear steps to make sure that you are successful in the long term with money.
Now, let’s dig into the habits and traits of someone who is financially stable.
Learn:
Traits of someone who is financially stable
This is when we can say that a person is financially stable.
In this section, we are going to dive into the qualities, traits, and habits of people that are financially secure.
These are things that you can start working on today. Over time you will begin to make better solid money choices going forward.
These are solid money habits that will transform your financial future.
These are simple and easy ways for you to become financially secure.
1. Emergency Fund
An emergency fund is the backbone of financial security – there is absolutely no way around it.
The goal is for you to never use your emergency fund. But let’s be real, there will be a time or a place that you will have to dig into your emergency fund because an actual true emergency exists.
A financially stable person has an emergency fund to fall back on when times get tough.
Here is more information on how to build an emergency fund and the steps that you need to build one fast:
2. Plan to Be Debt Free
Like we said earlier, one of the basic steps of how to become financially free is to have no debt.
However, for too many people that would automatically say that is not in the cards for me. Paying off my debt is way too difficult. But, not for the financially stable person!
I am here to tell you that you can become financially stable by creating a plan to becoming debt free and actually stick to it.
That means your debt balance is going down each and every month. Plus you know your debt payoff date because that paying off debt is one of the best decisions that we ever personally made.
Also, it does not matter if good debt and bad debt – the concept promoted by many financial gurus. Debt is debt.
Debt means that you owe somebody else and you are going to have to pay it back at some point for a premium. So, the sooner you pay off your debt, the better of you will be.
3. Save 20% of Income
Do you save at least 20% of your paycheck? If so, then you know what financial stability means.
When you are financially stable, you are not living paycheck to paycheck and you automatically save money at the beginning of the month when your paycheck comes in.
The best place to start is to start saving at least 20% of your income.
If you are not quite there (yet), then look at one of our main money saving challenges. They are plenty of savings numbers to start small and then work on the bigger challenges. Prove to yourself that you save money.
Since saving money is easy for them, they work on increasing their savings percentage each year. Personally, I find it a better challenge to increase that savings percentage more than anything else.
4. Spend Less Than You Make
In order to make progress, your expenses are less than the money that is coming in.
That does not mean the amount of money coming in is the same amount that you can be spending. The reason why is you have to account for the money saved adn invested.
You learn how to live below your means.
This may mean giving up a coffee, a trip to the salon, happy hour, or something you do out of habit in order to start saving money.
Remember, the goal for this type of person who is financially stable is they spend less than they make. They may spend on the little luxuries here and there because they are able to do since they have set money aside and they are not overspending.
5. Mastering Money management Skills
The best trait of somebody that is financially stable is they understand the basics of money management.
This does not necessary mean the person is in love with spreadsheets, budgets, numbers, and reads money management books every single second. This means they understand the basics.
You earn, you save, you spend.
You save more, spend less, and you prioritize your money goals to make sure you are making the progress on your financial journey that you want to do.
Many times financially stable people start to enjoy learning about money management and tend to dive into their finances even further. Once they get started, they want to learn more about their money situation, and how they can improve their finances quicker by making a few more changes.
6. Their Finances are Exciting
You don’t have to be an Excel spreadsheet nerd to find that your finances are exciting.
This type of person enjoys waking up checking their balances and seeing a positive increase in their net worth.
They find it exciting, they find it motivating. It makes them realize all of their sacrifices is making a difference in the long term. They look at the greater picture and saying I’m not going to work till I am 65; I may look at retiring when I am 50.
They are working hard today and enjoy finding ways to improve their money situation; which they find exciting and fun. You love quoting these money mantras daily.
7. Month or More Ahead on Bills
A financially stable person uses their income from this month to pay for the next month. They are not living behind where the income coming in is going is paying for the current expenses.
They are actually a full month, maybe even two, maybe even three months ahead of their bills.
For example, their paycheck from July will be their August spending. For some that want an even bigger cushion, their money earned in July is actually going to be for their September spending.
That is a sign that somebody is financially stable and has the ability to avoid temptation and not to spend the extra money.
8. Sinking Funds are a Priority
A financially stable person sets aside money regularly for expenses in the future. These are called sinking funds.
These buckets of money is money allocated for a certain purpose.
One of the most popular sinking funds that most people have is for vacations, kids activities, home repair, or car repair. Those are probably the most common.
You can have as many sinking funds as you want as a financially stable person. Another option is just to have one big sinking fund that will cover whatever is needed in case something be happens. A wise person knows how much money they need to cover these expenses.
A financially stable person utilizes sinking funds to make sure they are able to meet unexpected expenses when they happen.
9. Invest in Stock Market Consistently
In the last two years, the stock market on average typically earns 13.9% each year (source).
The reason that this is important is your money can make you money without you doing anything.
Once you have your investment account set up and automatically contribute a slice of your paycheck, then you select a fund or a few stocks of companies you believe in. Starting your investing system is not as bad as you would think.
By investing in the stock market consistently, you are more likely to have higher returns than somebody who invest once a year, twice a year, or three times a year.
By investing either every week or every month, the likelihood that your account size will increase is greater than when you try and time the market.
I’ll be very honest…the average person has no idea how the stock market is going to react and even most experts. However, you can take an investing course, like Trade and Travel with Teri Ijeoma, and learn about buyers zones and seller zones. This is the best financial knowledge someone can have and you probably will not lose money by attempting to figure it out yourself.
This investing course is a great resource and something I highly recommend all of my readers to take. Read my Trade and Travel review.
Because the amount of the course is eye-opening, I can pretty much guarantee it will be less than the amount that you can lose in the stock market by yourself.
That is what a savvy person would do – invest in the course and then invest in the stock market.
10. Focused on Next Money Goal
A financially stable person knows exactly what they have done to get where they are today. Plus they know exactly where they are headed to in the future.
They don’t waver on their next money goal.
They have short term financial goals that they are determined to make happen. That is their number one or two priority in their life because they know that by reaching their money goals, they will have more time freedom in life.
At the end of the day, having money equates to freedom.
This is not the same as having money does not equate to success. There will always be the age-old debt on whether is money everything.
The answer may surprise you, but at the end of the day… money does equal freedom.
11. Saving for Retirement
If I don’t save for my retirement, then who else will help me in my older golden years? That is exactly what a financially stable person would ask.
They know that social security and all the government programs might run out of funding, so they are focused on saving for their retirement and most financial state. They are in control of what they are able to control. You cannot control future government programs or tax rates.
In addition, they are using a Roth IRA to get the maximum contributions that they can have each year for retirement. They are savvy enough to get the maximum contribution from their employer’s 401K match.
This type of person won’t be wondering… What Happens If you Don’t Save for Retirement?
12. Able to Vacation When They want
These are the people that you probably envy the most because they paid cash for the vacation that you financed.
A financially stable person is not worried about having to pay for the trip on the way home. They are savvy and use a vacation fund that they contribute to on a regular basis.
That right there helps them to go on vacation each and every year.
Don’t be jealous! Join the bandwagon and start traveling the world today.
13. Money Set Aside for a Rainy Day
As much as we like to think we can predict the future, in reality, we do not know what the next day, week, month, or even year can bring. And in many circumstances, you may be caught off guard when difficulties come.
If you have a loss of income and still have bills to pay today, that is where having a rainy day fund set aside will help you be prepared.
This is a step to becoming financially secure and a long-term habit to embrace.
A person who has a rainy day fund that will cover at least six months of living expenses is somebody that is financially secure.
They know that hopefully, they will not have to use that money, but in case they do, the money is available to them.
14. Don’t Cry When Something Breaks
When you’re financially secure, you know things that are going to break.
And as much as it sucks, you are not going to be in tears, trying to figure out how to pay to replace that item. You understand the concept of… It is what it is you move on.
Replace the item and you go on with your day.
Since you know you have money set aside for various purposes, there is no reason to cry. It may not be how you feel like spending money, but that is just part of life.
When you are financially insecure and a light comes on in your car, that is a red flag that something is wrong. Many people freak out because they don’t have the money set aside for a $500 or $1,000 repair.
So you know when you are financially secure when you can laugh it off, shake it off and move on with your day.
15. Fun Spending Can Happen
This is one of the best reasons for being financially secure…you can spend money!
When you decrease your other expenses, you can increase the amount of fun spending. There are great benefits to becoming aware of your financial situation.
Too many times, people give up to their money situation. Instead of saying, no, no, no all the time, you will get to a position where you can say yes yes yes! I want to do this and this!
You do not feel guilty about spending extra money!
At this point, you know you have earned whatever it is you want to spend money on.
16. You Can Sleep at Night
This is one of the best traits of a financially secure person! Their finances are NOT waking them up in the middle of the night wondering “oh my gosh, how am I gonna pay my bills, how am I going to pay my rent, how am I going to pay my car payment, I am sick of my job, etc.”
You quit worrying about do I have enough money to make it to the end of the month. That is financially security right there.
When you can sleep at night knowing all of your bills, expenses, and saving are taken care of. You know deep down that you are on track of your financial future.
That is financial security at its best.
If you are in a situation right now where you can’t sleep at night, then you need to learn how to drastically cut expenses. You must get a hold of your situation before it spirals any further out of control.
17. No Frivolous Spending
Financially, even though a financially secure person can spend money when they want. They have the money to be able to spend, right?
Most choose not to be frivolous with their money.
(Hint: that is why they stay financially stable.)
They tend to be a thrifty person knowing a good price to purchase an item. They know when something is overrated or overpriced.
Even if they can afford it, they are just not willing to spend money on it. That is okay because they are in the situation of being financially secure because of the solid money decisions they have made.
Spending frivolous money here and there can up quickly. Even something as low as $10 or $20 here or there may not impact your financial picture in one day. If you add it up over the course of a year, it can become $3,650 or $7,300. Just by frivolously spending a small amount each day.
18. Know Your FI Number
Your FI number will help you to make the jump to financial freedom.
You know what it will take for you to become financially independent – specifically, the dollar amount needed.
In the FIRE community, it is typically known as your FI number, which is your financial independence number. The number is the amount of your net worth and the amount saved up, so you can start living off of your investment income.
This number will vary from person to person.
It is based on your personal situation. The variables that impact your FI number include:
Your income today
How much you plan to spend today
The amount you save today
How much you plan to spend in the future
Your age now
Age you want to quit working (aka retire)
Typically, most couples with kids can start looking at FI number in the $1.5 million range. The first reaction is that the number is either WAY LOWER than they thought it would be. Yes, because we have been taught by “financial professionals” that you need so much more in assets in your retirement accounts than you actually do.
The time is now to become a financially secure person and learn your fi number today. Here’s a great resource to help you.
19. Diversify Your Income
Just as with as above and knowing your FI number, financial independence becomes more likely to happen once you start diversifying your income.
A financially stable person earns all three types of income.
Most people rely on earned income only. If you only rely on earned income, then you reach a max threshold of what you are able to earn.
So a financially secure person has multiple buckets of income; they are diversified in investments, real estate, or side hustle. The key to long term success is finding ways to make passive income.
20. Budget isn’t AS Important
A trait of a financially secure person is they know how much they are able to spend, how much they need to save, and the amount of money that they come in every single month.
They do not need to budget down to the very last line item. (thank goodness for many of you reading this!)
A financially secure person has an overall sense that income exceeds their spending and saving goals.
That is financial security.
While a budget may help them stay focused and a more detailed budget may help them reach their longer term goals.
It does not mean that a budget is necessary. You can still have a loose budget and know that you are still making ends meet because they have a system set up and a system set in place.
Budgeting is not as important as it was previously.
21. Splurging is Okay
This is one of the best feelings as a financially secure person is knowing that it is okay to splurge. It is okay to spend extra money. It is okay to stop cutting corners at every single turn.
You remember back to the days when each month was a struggle to make ends meet. That is not the life that you live anymore; you live a completely different life. And now, it is okay to splurge.
And to be very honest, for most people, once they become financially secure, it is actually really, really hard for them to loosen that tight fist on their money and start spending it.
22. Same Page with Finances with Spouse or Significant Other
They share the same money vision and together they set smart financial goals. All of their decisions are made together.
Did you get that keyword??? Together. Meaning with the other person.
While they may not agree on every single line item of their budget or how they spend money individually, they still set aside money for each of them to spend as they please. Around here at Money Bliss, we call this money a slush fund.
Because at the end of the day, as a couple, they know they are still making progress in the right direction for the long term. So, these couples do not worry about the short term of how you spend your $100 each month if you are reaching your goals and that happens once financial security sets in.
23. Net Worth Grows Significantly Each Year
If your net worth does not grow significantly each year, then you got a problem.
A financially secure person knows their net worth and has systems in place to keep it growing significantly each and every year.
It’s not just one or two percentage points typically, you can expect a much higher rate of growth of 8-10%. Once your net worth increases, the bigger the bucket for the percentage of growth.
24. Credit Cards are Paid in Full
Financial security means you were able to pay your credit card bill in full each and every month without blinking. This is a mantra of a financially secure person.
They chose to use their credit cards wisely so they can get points, cash back, and travel benefits.
But, they are also cognizant that each and every month that credit card is paid off in full; this type of person will not carry a credit card balance for any reason. Period.
25. Prepared for Large Purchases
Nothing states financial security more than being able to go out and replace $5000- $10,000 worth of appliances or home repairs or something similar.
A financially secure person realizes that they have to be prepared for large purchases since they are going to happen.
It is only a matter of when a big purchase will happen.
This person is consistently setting money aside in a sinking fund for those large purposes. In our house, we like to call it the big murph fund.
We know that it may be a small remodel project, an appliance that needs to get fixed or looking at replacing a car. Many items can fall under this big murph fund umbrella. For us, we do not set aside money for each of those purposes in their own sinking funds because then we would not able to maximize our investments.
Instead, we estimate how much money is likely needed and set aside for large purchases that are likely to happen in the next one to two years.
Ways to Save $5000:
26. Your Health Matters
Financial stability means that you are able to spend money on your health and it is a priority for you and your household.
You start realizing the benefits of taking care of your body, eating properly, and managing your health in better ways.
The light bulb starts going off and says slaving at my work for 60 to 80 hours a week may not be worth it. While the income may be great, a financially stable person may feel like they are killing themselves inside for the benefit of others.
A financially secure person knows that their health matters more than money does.
You are more likely to spend money on organic produce because you know it is better for your body. You consistently review to see if you are spending your time in ways that benefit your overall health.
27. Bad Money Habits Are a Thing of the Past
We have all had them.
We have all made stupid money mistakes.
And the best part is a financially secure person has learned from their bad money habits and made changes so they never happen again.
All of the things that they used to do, they don’t do anymore. Bad habits are something that happened in the past. While they may regret it, which is absolutely okay and part of working through the process to make further progress.
Their past mistakes are not going to hold them back from their future self and build solid money habits.
28. Giving Money is Generous
When you are able to give 10% of your income and not be panicked about making ends meet, that is when you know that you have reached a higher level of financial security.
Giving money is generous.
It is something that helps society come together and as a community making the world a better place.
By you being able to give money will help somebody else become a better version of themselves. We have all had others that have helped us.
By giving money, you can pay it forward. It can be something as simple as paying for the people behind you. It could be something grand like having a building named after you because you made a massive donation.
The size of the giving does not matter. It is the fact that you decided and made the conscious decision to start giving your money.
29. People Ask You about Money Questions
When others start looking towards what you have accomplished in your financial journey, that is when you know you have created an environment of solid money management skills.
People will start coming to you asking questions on how they can improve their money situation. And that is fabulous!
That means that others view you as being financially secure and stable in your personal finances. You deserve a pat on the back and motivation to keep up the hard work.
30. Happy With Your Financial Path
Remember that saying, “If you are happy and you know it, clap your hands.” Well, as a financially secure person, it is when you wake up and look at your overall financial picture and say, “You know what, I’ve got this, I’m on the right path,” and you put a big grin on your face. And you pat yourself on the back.
As a financially stable person, you are proud of what you have overcome, the difficult challenges you faced, and now you are excited about where the next step is going to take you and your future.
It is not roses and happiness the entire way; there are ups and downs along your path that got you to a financially stable place.
But deep down you know that you are on a stable future with a solid path.
31. You Know You are In Control of Your Money
This type of person knows exactly where their money goes.
They are in control of their money; their money doesn’t control them.
They make the decisions on how, when, why, and where they spend money.
They are not told by outsiders how to manage their money. A financially stable person has control over their money and in the long run, it opens up the doors of opportunity.
This is a sign of financial independence.
How Much Money is Financially Stable?
How much money do you need to be financially stable?
This will depend on everybody’s personal situation.
If you are single and only providing for your one household, the amount of money that you need is much less than a family of six to eight people. In view of that fact, the more people that you’re responsible for, the more money that you need to become financially secure.
Let’s put some number on the question of how much money is financially stable.
3-6 months of expenses
Positive net worth
No debt (or a solid plan to get out of debt)
Able to give 5% of your income
Saving at least 20% of your income
$100k of F-you money (read JL Collins book for terminology)
Increasing saving percentage each year
At a bare minimum, you could estimate to need at least $25,000 for a single person or $100,000 for a family of four.
These assumptions include you continuing to live below your means and not regressing from the progress you made.
However, most people feel more financially secure when their net worth hits $250,000 or $500,000. Once you hit millionaire status, you are financially secure.
Are you Ready to Move from Not Financially Stable to Financial Stability?
You are in charge of your destiny.
You are able to go from one place to another, but you have to be willing to take the jump, take the risks, and seize opportunities.
So if you are not sure that you are ready to move on to financially stable, you need to be financially sound first. For now, save this post and come back once you are ready to move to the next step of becoming financially stable.
If you are ready to move to financial stability, then you need to start today and make all of these habits of somebody who is financially stable a part of your life.
There is no “Oh, I’m gonna wait till tomorrow.” Because then you are just going to keep putting it off. Tomorrow needs to become today.
The sooner that you can become financially stable, the better off that you will be.
Procrastination is just like having a plan, but not setting it into motion. You actually need to take action and start today. Enough planning, enough procrastination.
Start slow with easy habits. A good habit here and there. Keep building on those habits and you will slowly step-by-step learn how to become a financially stable person.
It does not take a huge monumental stream of income to achieve financial stability. All it takes is perseverance to make better yourself.
You can become the next millionaire with no money!
Know someone else that needs this, too? Then, please share!!
Did the post resonate with you?
More importantly, did I answer the questions you have about this topic? Let me know in the comments if I can help in some other way!
Your comments are not just welcomed; they’re an integral part of our community. Let’s continue the conversation and explore how these ideas align with your journey towards Money Bliss.
Are you excited to find the best version of yourself possible?
If you are, then you were in the absolutely correct place right now.
When trying to form a new habit or break a bad habit, many times we get lost in the overwhelming feeling that we are just not capable of making any changes. That is why these 30 day challenge ideas will help you become the person that you desire to be.
We cover a bunch of different thirty day challenge ideas across many contrasting areas in your life.
In this post, you are bound to find something that you will want to do.
For me personally, I have jumped on the 30 day challenge concept because I know that just a couple of days of trying a new habit isn’t going to last. I need to do something over a longer period of time to actually have it become ingrained as a habit or part of my life.
So, let’s dig into the best 30 day challenge ideas to get you started.
And don’t worry, we cover what are some fun 30 day challenges!
What is a 30 day challenge?
Simply put, a 30 day challenge is thirty days in a row that you challenge yourself to do something specific.
There are many things that you can do within these 30 days.
But, the goal is to use a thirty day challenge tracker and cross it off each and every day.
If you are not sure what can be achieved in 30 days, then you have never tried one of these challenges. You are able to accomplish more than you thought possible by sticking to the challenge.
This post may contain affiliate links, which helps us to continue providing relevant content and we receive a small commission at no cost to you. As an Amazon Associate, I earn from qualifying purchases. Please read the full disclosure here.
Does the 30 day challenge really work?
Yes, you will be transformed at the end of the month if you cross off a majority of your thirty days.
If you have not read Atomic Habits by James Clear, then I highly recommend getting this book ASAP.
This book will help you realize some of the things that you were doing without even realizing it, and causing you to have good or bad habits. Plus, it will help drive the desire to build good habits in your life.
For me personally, this book has helped me to build better habits and make progress. And I wished I read it when it first came out in 2018!
You need to get rid of bad habits that make your life a struggle. Thus, a 30 Day Challenge will help.
This is only true if you are committed to putting in the effort in time.
While you may skip a day and there is absolutely nothing wrong with that. As long as you jump back on the bandwagon and continue the next day.
Types of Fun 30 Day Challenges:
Well, let’s be honest if you’re not going to make it fun, then you shouldn’t do it at all! Because it is much easier to complete a fun 30 Day Challenge rather than something that you’re forced to be doing.
So, in order to keep it fun, you can always have a reward tied to the end.
Once you complete your 30 day challenge, then this is your reward for completion.
Too many times we look at thirty day challenges as “what should I give up for a month,” when in reality, you are not really depriving yourself for a month, you are trying to build a better you and better habits.
Here are the fun categories for all of our thirty day challenges:
How to Do a 30 Day Challenge?
As you will see shortly, there are lot of ways that you can intertwine these 30 day challenges together in your life and your schedule.
You may do one of these challenges while you’re sitting in the car waiting to pick up children from their activities. You may carve out time, specifically to work on a new skill, how and when you accomplish these challenges is up to you.
At the end of 30 days though, you are going to find a new level of happiness, enjoyment and fulfillment by sticking to these challenges.
The best way for success is to track your progress! There are resources at the bottom to help you out.
If you fall off the bandwagon for a day or two, that’s okay. Shake it off, and jump right on.
Don’t skip, more than a day. You got to get back on and complete your challenge.
30 Day Challenge Health & Fitness
First of all, I don’t like the sound of a 30 day wealth loss challenge because managing your health and fitness is a lifelong skill.
While thirty day challenge will give you a kickstart, you need to continue focusing on your overall health and fitness level.
Here are quick things to improve your health and fitness in the next month with one of these 30 day health challenge.
1. Do Workouts at Home
There is no reason you must go to the gym, so find a workout that you can do at home. There are plenty on YouTube, as well as subscription services to get you started.
Are 30 day workout challenges good? Personally, I have found that they keep my motivation going and accountable.
2. Daily Yoga
This is a challenge that I completed in the month of September is every day to do yoga. Some days it may be just 10 minutes, other days I may do an hour, but it is just a simple challenge to keep improving my flexibility and movement. Here is my favorite yoga instructor.
3. Drink Only Water, Tea & Coffee
Without realizing it, it is really easy to add a lot of liquid into your body that may not be the best. So, a quick and easy health challenge is to only drink water, tea, and coffee.
Eliminate all extra drinks, especially mixed cocktails, sodas, or energy drinks.
4. Stop Snacking
In today’s society, we are bombarded with eating small meals, and snacking is good for us. However, with the constant influx of food, we are more in a habit of snacking, rather than out of hunger for food.
To stop snacking, focus on your main meals for 30 days. Evaluate how you feel afterward a month.
5. Walk Before Lunch or Dinner
Walk before you sit down to eat a meal. Get outside, stretch your legs and take a walk around the block. It does not have to be for long; it can be 10 minutes or 30 minutes.
But, by taking that time to walk beforehand, you are burning calories and at an opportune time before you eat your main meals.
6. Focus on Core Strength
A quick 10 minute abs / core strength exercise helps us in everyday life. Yet, we tend to forget about building up the strength in our core.
Head to YouTube and do a 10 minute ab workout. It is very quick and easy.
You can easily fit in, when you go to take a break, instead of jumping on Facebook or Instagram. Do a quick 10 minute ab workout, and that will improve your health and fitness level by the end of 30 days.
7. Check out Fasting
Fasting is not for everyone. However, this statement intrigued me… the word breakfast means breaking your fast.
We are bombarded with food options 24/7, but maybe our bodies need a break from eating consistently. Check out this book for more info and talk to your doctor first.
8. Fit Bride-to-be Workout
If you are an upcoming bride, you probably want to be at the best possible fitness level that you are capable of doing. So here is a 30 day workout challenge, just for brides.
30 Day Challange Happiness & Gratitude
We all need a little bit more happiness in our life, and we all could express more gratitude. It does not have to be difficult.
These are simple concepts, but we get too focused on everything that is going wrong in our life. Thus, we do not look around and see the beauty and all of the good that is happening.
9. Walk Outside for Fresh Air
Did you know that fresh air is beneficial for your health? Also, it instantly improves your happiness level. So, all you have to do is step outside and take a fresh breath.
10. Start a Gratitude Journal
This helps you focus on three things. Each day wrote down three positive moments in your life. After you do this over the course of 30 days, your happiness level will improve, as well as your gratefulness.
11. Take Control of Your Phone
There is a great book written by two previous Google employees on how to use your technology appropriately and not have your technology take over your life. Check it out. You need to use your phone for the purposes of your phone, and not as a distraction tool.
12. Take a Social Media Break
Every day you are overwhelmed with the picture-perfect life of everybody else on Instagram and Facebook. Studies prove that will leave you discouraged and unhappy with your real life.
Take a thirty-day break from social media and stop focusing on everybody’s highlight reel. During those 30 days, connect with real people and have real conversations, and let your mind focus on the reality around you.
13. Buy a Bouquet of Flowers
Every once in a while, I splurge and buy a bouquet of flowers to put on the table – just because it brings a smile to my face every time I walk through that room. It is something very easy. Plus for my frugal side, I always buy flowers under $10.
14. What Brings Joy in Your Life?
For a quick minute, think about what just brings that extra joy in my life. Focus on those things. Plan to dedicate extra time to what you want out of life and not what others want for your life.
15. Take a Day for You
This is true for everyone, but right now I am going to speak directly to the mamas out there first. As a mom, we put our family and our kids first. We always make sure that we are available and ready to help them in every possible way. This will leave us drained over the course of a day, week, month and year.
Plan a day for yourself. Take a mental break from being in that role of a mom.
This applies to everyone; take a day to recharge your batteries. Then, you will be able to come back for another day with a fresh gusto!
16. Say Yes to that Hobby
We always have a reason or excuse why we are not going to start that hobby that we have thought about for many years. So, what better time to be happy, and give it a try? Try your new hobby for thirty days and see how it works out.
Resources for More Happiness & Gratitude Ideas:
30 day Financial Challenge
One of the hardest parts of managing money is it takes time to make progress. In a couple of days, you are not going to notice a significant change in one direction or another with your money.
At the end of 30 days, you can actually start to see progress with your money and your habits.
Here are the best financial challenges that you can do within a 30 day time period.
17. No Spend Challenge
If you have never participated in no spend challenge this 30 Day financial challenge is just for you. Learn how you spend money, and why you spend money.
That will help you evaluate whether spending money is worth it or not. Check out how to participate in a no spend month.
18. Have a 24 Hour Buy Period
Oh, retailers love to make a spend, spend, spend. This is your “conscious” way to pause your spending. Wait 24 hours before you could buy anything.
While this may not be convenient, it is a good way to see if you actually truly wanted that item, or if you are buying it for no specific need.
19. Envelope Challenge
With this super popular 100 envelope challenge, there is absolutely no reason that you cannot just do 30 days. Your results will vary on how much you end up saving. But, something is more than nothing!
If you decide to just do the numbers one through thirty, you will end up saving $465 at the end of the challenge. If you keep all the numbers 1-100 and randomly pick thirty envelopes, then your results are going to be different based on what envelopes you pick.
But either way, it is a good way to start saving money.
20. Financially Stable Habits
Regardless of where you are on your money journey, you can pick one of the financially stable habits and focus on those for the month. Pick a few habits to focus on for 30 days. If you want to be successful with money long term, you need to learn how to be financially stable.
21. Pick a Habit of a Thrifty Person
Being thrifty is a great quality to have! You are not cheap with your money, you know when to spend on quality, but a lot of times people look frown upon those who are thrifty.
By being thrifty, you will actually end up saving money in the long term. And that will impact your finances, so learn a quality of a thrifty person.
22. 30 Day Money Saving Challenge – Save $465
Our money saving challenges, here at Money Bliss, are extremely popular, and for good reason, it sets you up for financial success.
There are plenty of options to save money in thirty days. You can save $5 a day over the course of 30 days, and end up saving $350. Or find ways to stop spending money and save $20 a day, then you accumulate $600 in just one month.
30 Day Journaling Challenge
In this section, some people either love or absolutely hate it because journaling can be overwhelming (mostly thanks to Pinterest). We always feel like our journaling is not as good as others, or our handwriting is not as pretty. Or that you do not have the time to dedicate to journaling.
So when it comes to this 30 Day journaling challenge, I challenge you to do what you can do and not compare yourself to others.
Personally, my handwriting and the beauty of my journals are not great either. I do bullet points mostly and that works for me. I just find ways to clear my head and write down my thoughts.
23. Set a Time to Journal
You must dedicate time to journaling. Block out time to journal. If not, It is not gonna happen. You need to set a time for you to journal, whether it is five minutes, ten minutes, thirty minutes, or an hour!
Take time for whatever you need to journal what is on your heart.
24. Find Journaling Prompts
Do not go into your journaling time without an idea of what you should journal about. In advance, look for journaling prompts that work for you where every day you focus on a different part of your life.
For example… Day one is work. Day two is your family. The third day is your friends, and keep going from there.
Or start with these money affirmations to guide you.
25. Create a Bucket List
We all have goals, aspirations, and dreams. Nevertheless, have you ever written them out on a list? This is your time to create a bucket list. Start thinking about what you want to do, where you want to go, and how it is going to happen.
26. Write a Letter
Letters are a great way to share your thoughts with others. You may find finishing a letter may take a little bit longer than one day (and that is completely okay).
These letters could be written for future events like once a person graduates from college, gets married, finds their first job, or has a baby – whatever it may be, the letters share your heart now to be opened later down for a future.
27. Journal about your Pet Peeves
If you have certain pet peeves that drive you crazy, then why not journal about them? Then, you can notice signals to stop them before they start or get worse. Consequently, you can also find happiness at the same time.
28. Learning Opportunities
Write a list of all the things that you want to learn. Next, journal about the action steps you need to take in order to start learning and doing.
29. Describe your Life in 5 Words
Sometimes we do not want to write at all, sometimes we want to write a ton, and that is completely okay. If somebody asked you today, describe your life in five words, what would you say? Journal about that.
30 day Self-Care Challenge
It is okay to participate in self care. This is extremely important for your mental health.
Don’t keep putting this off until tomorrow. Wellness at home is extremely important!
This is your chance at self care if not all the other people in your household will be begging for your attention.
30. Extra Time for You
We go through the day focused on everything that needs to be done and a lot of times we do not take a breath. Blocking out time for you is extremely important for self care. Right now, set a timer in your phone for 5-30 minutes of just extra time, just for you, and spend it how you choose.
31. Be Still
Plan the time to take an extra 10 minutes to get away and have time for yourself. Just to be still. It could be when you get ready in the morning, be early to a meeting, or while waiting for kids to be picked up. Give yourself an extra 10 minutes to get ready.
32. Get a Massage
Work out all those kinks in your neck and your back plus all that tension. Get a massage for yourself. If you cannot afford regular massages, then look at the handheld massager to use at home.
33. Take a Detox Bath
Soaking in a bathtub is a great way to help with self care. Even soaking your feet is an indulgent experience. By doing a detox bath, you are able to draw out the impurities in your skin. Here are good detox sea salts to evaluate your soaking time.
34. Get Enough Sleep
If you are not sleeping well, then you need to get to the core of the problem. Everybody needs around eight hours of quality sleep. So, pull the drapes, cool the room, and get the rest you truly need.
35. No Phone for a Day
This one is probably going to be a challenge for most of us, but by having a phone-free day you will realize how different you react to things and how different your life actually feels. Sundays are a great day to do this!
36. Get your Hands Dirty
For some people, this may be gardening in the dirt. For others, it may be kneading dough in the kitchen. Whatever it is, getting your hands dirty and activating your hand muscles is therapeutic.
37. Listen to your Favorite Music
Indulge in your favorite tunes. Take time to fill your mind with music that you enjoy! Even better, upgrade the subscription so you have ad-free listening time. Did you know with Amazon Prime, you have access to over 2 million songs for free.
38. Get Dressed Up – Just Because
Dressing nicely brings out confidence. You do not need a reason to dress up. Pick out your favorite dress or dazzle an outfit with fun heels or jewelry. Just because.
Resources for More Self Care Ideas:
30 day Self-Improvement Challenge
You cannot just say you want to improve. You have to put action behind those plans.
Self-improvement is one of the hardest areas to overcome.
We feel like there is too much self-improvement to be done. So, go into this section on simple habits you can start doing today that will make a difference in the long run.
39. Write a List of Areas to Improve
You may have grand goals for everything you can do for self-improvement. But, in reality, we cannot accomplish all those things overnight. So, write a list of areas that you can improve in. Then, focus on certain aspects over the next 30 days. Stick with only three to five of those items on your list.
40. Say Yes
There are many times that we are too afraid to do something new that we will not even give it a try. If you want to improve something in your life, then take the initiative and go ahead and say yes to trying something.
41. Read a Book
Spend at least 10 minutes reading a book. Ultimately, you should spend at least thirty minutes or more a day of reading. Pick a nonfiction book in an area you improve in your life. Make sure it is a topic you enjoy.
Great Self-Improvement Books:
42. Improve your Habits
As said in the book Atomic Habits, you are unable to make progress in life if you don’t start building solid habits. There is no faster way to improve than my daily progression of your habits. Grab a habit tracker and commit to the best 30 days.
43. Write Down Future Goals
If you’re not sure where you want to go in life. If you want to improve in areas you don’t even know where to start. So create a list of goals of what you want to do.
Find: 100 Self Care Ideas For A 30-Day Self-Improvement Challenge
30 Day Productivity Challenge
By being productive, you can get more done. Just because you are getting more done, it doesn’t mean that you need more time.
It means that you are more effective with the time you have in what you can get done.
44. Use a Timer
This is the best way to get focused quickly. Use a timer, set it for 30 minutes, and get to the task at hand. Get it done and move on. By focusing on one thing at a time, you are more likely to be extremely productive during that time.
This is the timer I use.
45. Limit Distractions
If the distractions are notifications on your phone or on your laptop, remove those while you are trying to be productive in whatever you are currently working on. Do not be tempted to do something else. Move the distractions to a different area (hint: your phone)!
46. Habit Tracker
If you really want to be productive, then use a habit tracker! You can cross off all the habits you are specifically focusing on each and every day. By doing this, you are able to be consistent and focus on building those good habits.
47. Plan your Day in Advance
Don’t let life plan you. You must be planning your day in advance. Make a list of the things that you want to accomplish. That is how you become productive.
48. Track Your Time
Use a tool like Toggl or a written plan to track your time. This is different than planning your time in your calendar. This is how you actually spend your time. Also, this helps you to realize where your infinity pools of wasted time happen and you can dedicate time towards self car.
Don’t just guess how you spend your day; actually, figure out how you spend every single hour of your day.
49. Understand Time Freedom
If you have never heard of time freedom, then you are missing out on the best self improvement tool available. If you’re wasting a good portion of your day doing things that are not going to make a difference at the end of the day, then what is the point?
Your time is important. Make sure you experience all life has to offer!
30 Day Creativity Challenge
Just for those of us who feel not creative enough, this is for you!
You do not have to worry about being super creative; just by using that other side of your brain, you are able to create new neuropathways and lower many aging conditions.
50. Color Daily
You can pick up a great coloring book for adults that are beautiful and you can spend time coloring yourself. Start with coloring for ten minutes a day and see how you feel.
51. Sidewalk Art
Let your creativity escape onto the sidewalks and driveways. Every day write an inspirational message for others to read. You may start a trend of people stopping daily on their walks.
52. Dance Like Nobody’s Watching
Let your mind and your body move just because you are enjoying the song. Move to how you feel your body needs to move. Let that creativity come out in ways that you have not experienced since you were a child.
53. Drawing Challenge
Drawing is not my strength. However, over the past year, I have been working with my daughter on drawing challenges for kids. It has helped to overcome my fears, actually improve, and given me more confidence to draw. Here is a great drawing channel to help you start.
54. Play Music
Find ways to be creative and just play music. Just play to play. Do not play to practice. Play for pure enjoyment.
55. Try a New Craft
Head to the craft store and find something that you want to do. There are plenty of crafts to suit your personality. Plus some are a great way to decompress and destress.
One of my friends started knitting hats as a way to pass the time while she was waiting for kids at sports activities.
30 Day Organization Challenge
By far, the most popular 30 day challenges are for organizing your home, your life, your stuff, your clothing, etc. More than likely, it is probably what you first associate with any 30 day challenge ideas.
Organize, declutter, spring clean … Get rid of the extra stuff in your house.
Take time to clean those areas that you have been neglecting. All great ideas, so let’s dig in!
56. Spring Clean
There is a great feeling of getting rid of stuff and the process of spring cleaning. You can feel this freshness in the area. Honestly, this is something we all should be doing each year. Here is a great spring cleaning checklist to help you get started.
57. Sell Your Stuff
Get rid of extra stuff in your house. If you have not used it for the last month, then you more than likely probably do not need it in your house. Start selling your stuff and here is a great resource to help you.
58. Declutter. Declutter Declutter.
There are lots of resources on decluttering. Just remember, decluttering is extremely important because every single day we have more and more stuff coming into our life, but we are not getting rid of more and more stuff.
Take time and declutter by doing a 30 day challenge. You are only focusing on a small area every single day and by the end of thirty days, you have made great progress.
Decluttering Resources for You:
59. Big 30 Day Decluttering Projects
Let’s face it, not every place in our house, we can organize in a day and sometimes they take a month. Perfect examples are the basement or garage. So on those bigger areas, you can still break them down and every day check one thing off the list.
During the overall decluttering challenge, focus on one area or one shelf per day in that space that needs help. Also, give yourself the grace to actually accomplish what you need to get done.
60. Keep a Clean House
Guilty of not being the best housekeeper? Don’t worry most of us are not great. Thankfully, you can easily check off tasks with this clean house checklist!
61. Take in Less
This is something that you can do on a daily basis. Your goal is to nothing or very little into your house, and have zero impact on the trash and waste. Your home slowly producing a minimalistic vibe. This is known as frugal green.
62. Minimalism
One of the best ways to live life with less and spend less money on a regular basis is to be a minimalist. You can choose your level of minimalism. This means that your cupboards are not allowed to overflow with extra stuff; those shelves must fit only what you need and what you use. Check out this minimalism challenge.
30 Day Challenge For Kids
Let’s not forget why we are trying to build good habits for ourselves, we can also instill good habits into our kids!
These are the 30 day challenge specifically designed for kids. All of them are fabulous 30 day challenge for students!
63. Teach Kids to be Grateful
Most children in America are extremely privileged and have access to things, and resources than most of the world and more than their own parents. They have become accustomed to the little things in life and take everything for granted.
So, we must teach our kids to be grateful. Here is a great gratitude challenge for kids.
64. Kindness Challenge
We all know the trouble that happens at our schools. Also, we know kids are choosing mean words, without realizing it, or maybe doing it on purpose. Either way, we need to instill kindness into our children. Here’s a great kindness challenge for kids to get you started.
65. Money Challenge for Kids
Kids need to be taught to save money. There is no way around it. If they are not taught at home, they will not have those lessons as adults. So, teach them to save their age, every single year growing up.
If they start this at age three, by the time they graduate, they will have over $2,000, not including interest in their accounts. Here is the Save Age challenge for kids.
66. Drawing Challenge for Kids
Every kid wants to learn to draw. Let them use their creative side and have fun. It is a simple project to complete each day. Plus when someone joins them, it becomes a fun experience to share. Use this drawing challenge to get the creative juices flowing!
67. Back to School Decluttering
Get the kid’s help on back-to-school decluttering! They need to learn to be responsible for their things too! Make it fun with a scavenger hunt with this back to school calendar decluttering list.
Success happens when you are able to track your progress!
Are you Ready for your Thirty Day Challenge?
The goal of this post is to get you motivated to find fun 30 day challenges for 2021!
It is not overwhelming with all of the possibilities that you could do in order to become fitter more healthy, improve your self care, improve your productivity, or clean out your house.
The goal of these challenges is to provide opportunities for you to choose what you want to do. You can find plenty of 30 day challenges on Instagram, TikTok, or Pinterest. But, don’t get caught up in trying to find all of these challenges.
Pick the thirty day challenge that is on your heart and you want to do. The best 30 day challenge is one that you deep down you need to accomplish.
No one else can write that, or find the challenge for you – only you can do that.
Right now, set a timer for five minutes and think about what areas would you like to do a 30 day challenge.
We have given you plenty of 30 day challenge ideas, but now you need to decide what works for you.
One of the great things about many of these challenges is they overlap.
Above you will find all of the their day challenge examples. Which one is your favorite challenge idea?
Know someone else that needs this, too? Then, please share!!
Did the post resonate with you?
More importantly, did I answer the questions you have about this topic? Let me know in the comments if I can help in some other way!
Your comments are not just welcomed; they’re an integral part of our community. Let’s continue the conversation and explore how these ideas align with your journey towards Money Bliss.
Hello! Today, I have a great debt payoff story to share from Davina (from the blog Davinas Finance Corner). Here’s how Davina went from being in payday loan debt for 1.5 years to being debt-free, saving over $50,000 and building a five-figure investment portfolio. Enjoy! In this post, I will share how being stuck in…
Hello! Today, I have a great debt payoff story to share from Davina (from the blog Davinas Finance Corner). Here’s how Davina went from being in payday loan debt for 1.5 years to being debt-free, saving over $50,000 and building a five-figure investment portfolio. Enjoy!
In this post, I will share how being stuck in payday loan debt for 1.5 years completely changed my relationship with money. I will detail how I saved over $50,000, became debt free and built a five-figure investment portfolio.
I’ll talk about the mistakes I made, the lessons I learned, and the crucial changes that helped me turn my financial life around.
I understand that many people struggle with their finances and I want to share my story to inspire you.
I want to show you that no matter how bad your situation may seem, you can make changes and achieve your goals. You don’t have to deprive yourself, it’s possible to create a plan that works for you and still enjoy life.
Related:
My Story
I grew up in a single-parent household with my mum and older brother and we did ok. We had everything we needed but I was aware that we were a low-income household.
My friends had the latest name-brand shoes and clothes, but my mum couldn’t afford to buy those things for us. FOMO is real when you’re in school so I felt it.
I remember thinking when I get older I want to create a life for myself where I don’t have financial restrictions.
When I was younger I was actually good at managing my money. My mum drilled the importance of saving into my head, so when I got my first job that is what I did.
I had a part-time retail job while I was a college student and we were paid weekly. Each week I would calculate my hours to work out how much I would be paid and plan my spending.
You would think that I was destined to have a good relationship with money but somewhere along the way, my good money habits got lost.
How I got into debt
I got my first credit card when I was 18, I didn’t need it for any particular reason I just signed up because the bank offered it to me. When I received it in the mail I didn’t use it, it was just sitting there.
Then a few months later I was made redundant from my job so I activated the credit card and used it to maintain my lifestyle. This was my first mistake.
I was unemployed so I had no money to repay the balance, but I wasn’t thinking about that. All I cared about was maintaining my lifestyle which consisted of socialising with friends.
Eventually, I got another job and was back on my feet but I didn’t pay off the credit card I just ignored it. For a very long time!
A few years later I turned 21 and wanted to buy a car but instead of saving up for it, I decided to get a loan. So I took out the loan, bought a second-hand car and less than a year later I was made redundant again!
I didn’t have any savings (clearly I didn’t learn from the past) so I was back to square one. I was unemployed, but this time I had $6,200 debt ($2,000 credit card, $1,200 overdraft and $3,000 loan). The banks were chasing me for payment but I told them I wasn’t working and ignored the payment demands.
The final debt I incurred was the worst. It was a few years later and I had a good job. I was making decent money for someone in their 20s who still lived at home and my expenses were low.
I was living life and having fun, but that fun was expensive. Every weekend I was out with friends. We were going out to clubs, dinners, concerts, festivals and going on holidays.
I was living paycheck to paycheck and still didn’t have any savings so if I ran out of money I had to borrow it from family or friends. Some months were ok and I could get by, but it was tight. Then one month I made a terrible mistake.
It was the week between Christmas and New Year’s and I was broke. We were paid a week early and I had spent all my money on Christmas presents and festivities.
My cousin asked me to go out, I had no money so I should have said no. But instead, I said yes and I took out a payday loan. I received the money instantly so I got ready and went out.
The next month the company took the loan repayment plus a lot of interest from my account so I was broke again. But it was my birthday month so I got another payday loan so I could fund my celebrations.
The next month, the same thing happens. The loan repayment was taken so I took out another loan to get by and this cycle continued for the next 1.5 years!
Every month once I repaid the loan I was left with no money. I had no savings to fall back on and I had debts that I had ignored for years so I was stuck.
At this point, I started to feel the weight of the mistakes I had made (finally). Every month I was worried about how I would get by. I felt embarrassed and stressed. I also felt disappointed with myself because I was making decent money and I knew better.
So I finally decided to do something about it. I needed to figure out a way to get out of the hole I had been digging myself over the past few years.
I Got Help
I did a Google search to try and find some resources. I found a debt charity that could help so I called them up and explained my situation.
We went through all of my debts explored my options and agreed the best option would be to go on a debt management plan.
The way this worked is I would make a monthly payment of what I could afford to the charity and they would distribute it among all of my creditors.
This wasn’t going to pay off my debt fast, in fact, it barely made a dent in the balance. But it was a step in the right direction and it would stop the creditors from chasing me and ease my stress.
A Lucky Break
Side note: Have you read The Alchemist? If you haven’t I highly recommend you do. In the book, there is a quote that says “When you want something the universe conspires in helping you achieve it.” That is what this lucky break felt like.
The following year I found out I was being made redundant again! (Clearly, I have bad luck with jobs lol) But this time I was going to receive a payout. Initially, I was excited and thought yes big payout I can use the money to buy a new car.
But the whole process took about three months and during that period I had time to think. And I decided to use the money to pay off some of my debt and save the rest.
At this point, I didn’t want to make the same mistakes and I knew that I needed to build up my savings and change my spending habits.
Once I received the redundancy payment I stuck to my plan and repaid the payday loans and the overdraft and I put the rest in my savings account.
Debt recap:
Credit card – $2,000
Loan for the car – $3,000
Overdraft $1,200
Payday loans – $3,600
Total debt = $9,800
Redundancy payment = $7,000 – $4,800 towards debt and – $2,000 in savings – $200 to spend on myself.
Remaining debt = $5,000
I wasn’t completely debt-free at this point, but I reduced my debts and finally had some money in savings. I got a new job shortly after and every month I made sure I contributed to my savings.
I was determined to change my relationship with money so I tried to learn as much as I could about personal finance. Once I applied my learnings I was able to pay off all my debt, completely change my relationship with money and save over $50,000.
How I paid off my debt and saved over $50k
To put things in perspective, I work in Finance and make decent money but I’m not well off. I did get a lucky break with the redundancy payout which I am very grateful for. But it wasn’t enough to pay off all my debts. And it took me about 3 years to save this money.
The most important thing I did to help me was to educate myself about money, change my money mindset and create a plan that worked for me.
Below, I will share the steps I took to get there.
Changed My Mindset
Before I received the redundancy payment I had a reality check. I had to admit to myself that I was living above my means and I had to take responsibility. No one was going to save me I had to make changes to get out of this mess.
I looked at the facts and thought to myself I make decent money so there is no reason I can’t build up my savings and spend money on things I enjoy. But I needed to learn how to manage my money and stop letting my money manage me.
This meant making changes to my lifestyle and sometimes saying no to social invitations. I didn’t like the way I felt when I was stuck in the payday loan cycle so I was committed to this new journey.
If you’re in a similar situation the first step is to understand what got you to where you are. Once you understand this you can put things in place to help you improve.
I Educated Myself About Money
Now that I was committed to making changes I started to research how money really works. I wanted to understand how people manage their money, learn healthy money habits and implement them into my life.
I started to listen to podcasts and watch finance YouTube videos and came across a lot of people who were once in debt but managed to create financial freedom.
This was super helpful for me because they were regular people who managed to change their circumstances and they were sharing the blueprint.
I also started reading books about money. I read the classic personal finance book Rich Dad Poor Dad I also read The Psychology of Money and The Millionaire Next Door. Here is what I learned from all of the information I consumed.
To create financial stability or financial freedom you need to do the following.
Stick to a budget
Live below your means
Avoid spending money on liabilities
Find ways to grow your money
Invest in yourself
One thing I did and I recommend others do the same is I took the information I learned and adjusted it to fit my lifestyle. I didn’t take everything I heard and copy it. Instead, I used it as inspiration. Personal finance is personal so always do what works best for you.
For example, investing in the stock market was highly recommended, but I wasn’t ready at the time. So I focused on saving instead but I made sure I used a high-yield savings account. This way I could earn interest so money was still growing.
Here are the YouTube channels that I learned the most from:
Nischa
Jennifer Thompson
Earn Your Leisure
I Got My Priorities In Order
My number one priority on this journey was to build up my savings. I understood that aside from my poor spending habits not having money set aside led me to get into debt. So that is what I focused on.
I didn’t have a specific amount I wanted to save, I just wanted to have a cushion to fall back on. So every month when I got paid I made sure I contributed to my savings. I started off small but once I changed my spending habits and cleared all my debt I was saving about 50% of my income.
Looked at My Spending Habits
My spending habits were the biggest factor for me so once I committed to repaying my debt through the charity I knew that I needed to make some changes and get my spending under control.
I got my bank statements, looked at my spending over the last few months and used an Excel spreadsheet to categorise everything.
Most of my money was being spent on eating out, takeaways, shopping and socialising. The most shocking part for me was the amount of money I was spending on food.
I was spending over $300 a month on eating out with friends and takeaways! I knew I was spending too much, but seeing the actual number was the wake-up call I needed.
This was something I could change so I started planning my meals and doing weekly grocery shopping. Having my meals planned saved me so much money because at meal times I didn’t have to overthink about what to eat. And it helped me reduce the amount of takeaways I was eating. I also cut back on going to dinner with friends.
I didn’t change everything at once, I focused on the areas that made the biggest difference and over time I made more changes. It can be overwhelming to change everything at once so you can start small and build up over time.
Once I started to see improvements like having money left over in my account before payday and seeing my savings build up I was hooked and wanted to keep going.
Created a budget
I knew that I needed to create a budget to help me manage my spending. But it had to be the right budget for me.
I didn’t want to be rigid and stop doing the things I enjoy. I believe in balance and knew that if I restricted myself I wouldn’t stick to it.
So I thought about the things that I valued and found a way to include them in my budget. For me, those things were travelling, going to the theatre and having dinner with friends.
I sat down at my laptop and put all of my numbers in an Excel sheet. It looked a bit tight but I knew if I made some changes I could make it work.
I Made Some Changes
I looked at my monthly direct debits and subscriptions and got rid of what I didn’t need. I was paying $90 for a gym membership that I was hardly using so I cancelled it.
I had cable for over a decade but I found a cheaper TV alternative so I made the switch.
Once my phone contract expired I switched to a SIM-only contract and saved $50 a month.
To optimise my budget, I paid any bills I could upfront instead of on a monthly basis. This included bills like car tax and insurance and Amazon Prime. By doing so I was able to take advantage of discounts offered by providers as an incentive for full payment. And it meant I had fewer expenses every month.
Doing weekly grocery shopping was working well for me, but I was spending about $250 a month which is a lot for one person. So I fined-tuned my grocery items and switched to a cheaper grocery store which saved me over $100 a month.
I also signed up for a loyalty card at the grocery store so I would get discounts and collect points when I was shopping.
I gave myself a monthly personal allowance to spend on fun so I was still able to do the things I enjoyed, I just did it within a budget. And once that allowance was finished so was my fun for that month lol I used a separate bank card for this allowance to help me stay accountable.
I created a sinking fund for my holidays and I made sure I saved a portion of my paycheck every month no matter what. I treated it like a bill.
Another change I made was I started working as an independent contractor which increased my income by about $20,000 a year. I was doing the same job, I just figured out a way to work smarter.
Even though I was making more money, I didn’t increase my spending, instead, I increased my savings. This is one of the best tips I can give to avoid lifestyle creep.
Once I started seeing the impact of these changes I became obsessed. I turned into a savvy spender and was always looking for ways to spend smarter and save money.
At this point, I was managing my money well and my spending habits were under control. So I finally called up the debt collectors and agreed to repay the rest of my debt in equal payments over 6 months. I was so happy and relieved when I made the final payment!
I put my money in places to grow
Once I paid off the rest of my debt and had saved up about $20,000 I knew the next step was to invest my money. So I did more research and decided the best option for me was to invest in index funds.
I am risk averse so I took a long-term approach and committed to investing an amount I could afford consistently every month. I also put my savings in a high-yield account so I was earning interest on my savings.
I was able to do this because I finally had some room to breathe in my budget. I wasn’t living paycheck to paycheck. Also, my mindset and my priorities had changed.
It Worked
By the middle of 2023, I was completely debt-free, had $54,000 in savings and had built a five-figure investment portfolio. It wasn’t easy, but I am proud of myself because I came a long way.
Upon reflection, I am grateful for the lessons I learned because they completely changed my relationship with money. It also helped me learn to prioritise spending money on things I value instead of material things.
I love to travel and now I can afford to travel at least twice a year. I have been on some amazing trips and I am looking forward to many more.
This money journey also taught me that sometimes less is more. Now I buy less stuff because I am content with what I have. I only buy what I need and I feel lighter and more free.
Here is a picture of me in Thailand. I felt so happy on this trip because I could afford to do the things I enjoy and wasn’t stressing about money.
Future Plans
I plan to use some of the money I have saved to buy an investment property because I understand the importance of buying assets. And I will continue to invest in the stock market. I am also working on my blog davinasfinancecorner and hope to monetise it this year.
Having financial stability is priceless and it has given me more options. I am intrigued by digital nomads at the moment so we’ll see where the future takes me 🙂
Do you have debt? Do you have a plan to pay it off?
Author Bio: Hey there! I’m Davina. I have worked in accounting and finance for over a decade and have learned the best ways to budget, save and make more money. Now I have created Davinas Finance Corner to help you do the same. I have experienced first-hand the struggle of being in debt, living paycheck to paycheck and not having enough money to do the things I enjoy.
I didn’t like that feeling so I was determined to break free from that cycle and change my circumstances. Once I applied the principles I learned from my career in accounting and personal finance I was able to pay off my debt, save my first $50,000 and build an investment portfolio.
Through my blog, I aim to empower women to take control of their finances, build wealth and work on their personal growth. Whether it is finding ways to save more, make extra money or improve yourself I am here to provide information to help you on your journey.
This post may contain affiliate links, which helps us to continue providing relevant content and we receive a small commission at no cost to you. As an Amazon Associate, I earn from qualifying purchases. Please read the full disclosure here.
“What’s the first thing that comes to mind when thinking of how you can improve your financial situation?”
Many people would say “spend less money.”
One way to do this is by buying something used. In fact, a study found that Americans buy 10% more new items than they did in 2008 because we have so many promotional offers available. Not only should you be trying to save some money on your purchases, but also cut all kinds of other expenses from your lifestyle and keep them at a minimum.
Usually, people spend more money than they need.
This can lead them to have less money saved or be able to afford the things they want.
However, with a few simple changes in your spending habits, you will be able to make more of what you earn and feel more satisfied.
In today’s world, it is easy to be overwhelmed by the amount of information available on how you should spend your money.
With more and more people struggling with their finances, I would like to share a few hacks that have helped me spend money wisely and simplify my life.
Also, I am going to include some simple money saving tips on how to spend less money! Do not get duped into buying things you did not plan on purchasing or spending more money than you needed to.
How to Spend Money Wisely
As you can see shortly, there are many ways to spend money wisely. Whether it be through saving, investing, or taking care of your health; with this article as a guide, you won’t have to worry about your money any longer.
This is meant to inspire people on how they can better manage their finances and live more efficiently, while still being able to get the things that they want.
Spending money wisely is a way of life, but it can be tough to know where exactly you should start.
Luckily for you, we will break down ten hacks for you to follow so that your money does not go to waste.
1. Pay Yourself First
You are probably wondering, why is saving money about how to spend money.
The first thing you should do to spend money wisely is to pay yourself first.
This could be saving for the future with an emergency fund, which can be used in case of emergencies or downturns in your financial situation. This can be done by contributing to a high-interest savings account and saving up to $1,000 or more for emergencies.
Or choose one of our money saving challenges to match your financial goals.
2. Take Care of You
You need to take care of your health, as that will improve the quality and longevity of your life.
Making wise choices on choosing quality food and healthcare may cost more money upfront, but in the long run, it will save you money on huge medical expenses.
You spend your money wisely by taking care of your health. Money spent on a gym membership, healthy food, and other medical expenses can save you even more money in the long run.
Many people love the idea of time freedom for this reason.
3. Invest in Your Future
One way to spend money wisely is by investing in your future. This might be done through a 401(k) or Roth IRA, which lets you invest pre-tax dollars and then withdraw them tax-free once you retire.
This can be a great way to save on taxes, but the money needs to stay invested for at least five years before you’re able to withdraw it without a penalty.
4. Choose Experiences
We live in a society that prizes material purchases and spending. Remember to prioritize experiences by getting outside. Not just for your health, but also on the mental and emotional levels, as well as the personal and even family levels.
Also, a plethora of benefits to spending money on experiences, not all materialism related.
Try to spend less on electronics and materialistic items that fill your home and more on experiences like travel or going out with friends.
This is a great way to spend time with your family and friends instead of buying things for them.
Related Reading: Overcome Gift Regret: Experience Gift Ideas That Do Not Go To Waste
5. Set Goals
Many of us, regardless of financial status, know that if we want to live on the right path without having our finances stress us out, then there are good habits to be followed.
Think about how much money you want to make in the next five years or ten years and make up how to get there.
Now, you need to line up your spending to make that happen.
Not sure how to set goals? Start here with making smart financial goals.
6. Budget
The next hack is to make a budget and stick to it, which will help you spend your money wisely by only spending what you have available in each category.
A budgeting strategy helps you develop better financial skills. These strategies are practiced in order to help prevent overspending and create a set spending plan for you.
Create a budget that includes all your expenses and then each time you get paid, put a little bit of your paycheck into each category.
7. Evaluate Your Spending
Oftentimes, we find ourselves buying items that are not necessary and just a waste of money. This hack is to evaluate what you’re spending your money on and think about whether or not you want to continue this habit.
For every purchase ask yourself if the item is worth it and what will happen if you don’t buy it.
By completing a no spend challenge, you will be amazed at the things you find out are not worth spending the money on.
8. Likeminded People
Next, you should try to spend less time with people who are going to make you feel bad about yourself.
This is a hard one but just think of the good things that will happen when you stop hanging out with people who make you feel bad.
If you are constantly around people you need to learn how to not spend money, then you will be battling upstream battle. Look for those who have the same mindset and are determined to spend money wisely.
9. Spend on Quality Over Quantity
The best way to buy quality items is to spend more money on them. Buying cheaper items has its risks, but over time it will lead to dissatisfaction with the product and waste of money.
If possible try to spend money on things that will last a long time and not just stuff like food or rent.
This concept of quality of quantity is not difficult to understand. For example, instead of owning 10 pairs of jeans that you think you need, you spend money on the two pairs of quality jeans that you love.
Because items are so cheap to pick up, it is easy to quickly fill our homes with quantity and excess stuff (plus we are spending more in the process). Instead, spend a little more and buy less of what you truly need or want.
10. Eat at Home
One way to save money is by cooking more at home and not going out to eat. You can also cut down on the amount of food you purchase, which will help you save a ton of money in the long run.
Instead of buying food that will go bad quickly or ruin your health, buy more expensive food. This way you are spending less money on the product but it is going to last longer and be better for you.
By spending money wisely, you must learn how to spend less money on food.
11. Use Tax-Advantaged Accounts
Specifically, I am talking about FSA or HSA, or dependent care FSA. This is when you set aside money each year for these purposes. Money goes into these accounts tax-free, so you are lowering your taxable income.
On how to spend FSA money, you must have the proper documentation on your plan. The same is true for how to spend HSA money.
The limits change each year on how much you can contribute to each of these plans, but the maximum you can spend tax-free is over $20,000 for a family.
This is a great trick to spend money wisely and lower the amount you owe in taxes. Just make sure to spend the amounts in the FSA each year!
12. Spend on things that add happiness to life
Personally, I have a hard time spending money. Period. This is something I am working on as we progress through our financial journey. Now, I look to spend money on ways that will improve our life or bring smiles to our faces.
Spend on things that add happiness to your life.
For example, if you’re happy with the new shoes you’ve just bought, then it’s worth spending money on them! If you love to travel, spend on travel. If you like reading fiction novels, spend on fiction novels.
Spend your money on things you enjoy and make the most of the disposable income you have.
How to Spend Money to Make Money
One of the best ways to make money is to give back. However, it takes some money to make money, which is typically frustrating to those who constantly want to make more money per year.
By selling a product or service, you are supplying them with your knowledge, advice, and understanding. Another way is through investments. Investing, while not always profitable, has companies that adhere to companies of all kinds.
One of the best ways to spend money wisely is to invest in ways to make money.
There are plenty of ways to make money and start your own business.
Here is a great book to open you up to the idea of starting your own business and the freedom with money it can bring.
Here are great ways to make money on the side:
It is possible to make more money on your business than you make more money in your current job or career.
How to Spend Less Money
Many of us spend too much on material items that are not actively used. This creates a situation where we have to make more purchases in order to get the same level of happiness.
The first step towards becoming frugal is deciding what you want out of your possessions, and then only buying those things which will provide you with this goal.
Here are 32 easy ways to do that!
Shop at Discount Stores: You don’t have to go all out with your shopping if you’re looking for a way to save some money. There are plenty of stores that offer great deals and you can still find some really cute clothes.
Find Online Deals: You can find deals online for just about anything. This is a great way to get the deals that you might not know about. There are so many websites out there dedicated to helping you find the best deals and coupons.
Save Money on Your Cell Phone Bill: Just because the cell phone companies want to charge an arm and a leg for service doesn’t mean you have to. There are plenty of options out there where you can find great deals on your cell phone bill without having to break the bank.
Call and Cancel Unnecessary Services: Do you really need to subscribe to cable? How about getting rid of your gym membership because you know that all the exercise won’t do anything for your weight. The truth is you don’t need a lot of these things that are costing you money. Also, try a free service like Trim or Billshark.
Buy Generic Items: Do your shopping at the grocery store and buy generic items instead of brand names for most of your purchases.
Buy in Bulk: Buy items like toilet paper, cleaning supplies, and other things in bulk to save on the cost of each individual item. This is more so for families who can buy food in bulk.
Start Couponing: This is a great way to save money. I know it’s not the most enticing offer, but if you’re looking to save money then coupons can be your best friend. You can go online and find coupons for items that are on sale at your favorite store or you can get them in the Sunday paper.
Use Public Transportation: This is a great way to save on gas and wear and tear on your car.
Get Rid of the Car: If you live in an urban area, it might be worth getting rid of the car and using public transportation or just walking instead. Or become a single-car family.
Carpooling: One of the biggest hacks that many people are unaware of is carpooling- which can save up to $1,000 per year.
Rent Things: Whether it is a video, movie, or power tools to complete a project, renting will save you money.
Use Less Electricity: Turning off lights and other electronics when they are not in use can really help!
Eat Spaghetti: Eating pasta saves money and reduces your grocery bill.
Use the Library: If you like to read, the library might be another alternative to buying books.
Borrow Books: Borrowing books from the library or your friends is a great way to read for free!
Use Online Promo Codes: Using promo codes or coupon codes on all of your online purchases will make a huge difference. Here is a great place to find promo codes and get money back on your purchases.
Eat Out Less Often: Eating out less can save money!
Eat Less Meat: Eating less meat will save on your grocery bill! There are so many wonderful delish meals made with beans!
Buy Used: If you must buy something but don’t want to spend much, consider buying used versions of the items you need. Buying used products will save money and help the environment.
Share with Friends: Sharing your belongings, like clothes or toys, can save you money.
Ask for Help: When someone offers to help you do something it’s only polite to take them up on it.
Find Used Clothing: Buying clothing used can save you a lot of money and help the environment!
Downsize Your Hobby: It’s important to live within your means. If you have an expensive hobby it may be time to scale back on the expense or find a cheaper one.
Need vs Want: Try not to spend money on things that are “needed” but not “wanted.”
Avoid Impulse Spending: Try to plan before you buy anything- think about what you need, the price of items, and if it is worth buying.
Plan Free Activities: Plan outings with friends and family, rather than going to the movies or restaurants alone.
Plan For Expensive Times: Give your friends a heads up before you go out on an expensive outing so they know it’s coming. They may be able to help cover the cost or provide a cheaper alternative. This will help everyone’s budget.
Do Your Research: Research all of your options before you make any purchase- this will allow you to get the best bang for your buck and find the best deals.
Bartering: If you must buy something, but you don’t want to spend much money on it-consider bartering with someone or buying used items instead of new ones (e.g., clothes, furniture).
Know-How You Spend Money: Keep a budget to track your spending and be aware of how much money you have left at the end of the day or week so you can plan accordingly.
Negotiate on Price: If you plan to buy something, don’t tell the retailer how much money you have until after they give their price- this can help save money and time by eliminating any final price negotiations.
Think Before You Spend: Put some thought into your purchases before you make them- this will help you make sure you really want to spend money.
How Much Money Should you Spend?
There is a lot of conflicting information on how much money should be allocated to needs vs. wants, but this takes into account what percentage of take-home pay should be spent on necessities.
Here is the Cents Plan Formula we Use at Money Bliss:
50% to Basic Expenses
20% to Savings
10% to Giving
20% to Fun Spending
0% to Debt
So, the average person should spend 50% of their take-home pay towards needs. That means you must spend your money wisely.
Keep a list of what you spend and how much it cost.
You should have some idea of how much money you are able to spend on what. This will help you decide whether it is worth buying a thing or not before purchasing it.
Use the list to see where you can make adjustments, for example spending more time with your family or finding fun things to do with no money.
Ready to Start Spending Money Wisely?
Spending money wisely can seem complicated at times.
The key to using money wisely is understanding how you spend your cash. Spending tends to happen automatically, which can lead people down the path of overspending and debt if not monitored closely.
The affordability of happiness and satisfaction depends intensely on the money we have.
The activities we could do, and expenses we could cut out, can be often atrocious and insufficient for our expectations.
Extreme dissatisfaction and the whole time earning less than we would desire, we may feel that we need to know how to spend money wisely.
The vital hacks elaborated in this post will help to understand caring for a budget, and changing our habits to spend more wisely.
When spending money wisely, people should be aware of their habits so they can change them in order to save more and spend less on things that do not bring happiness or benefit the person’s life.
If you want to save money, spend it on something that will make your life better or more enjoyable.
Know someone else that needs this, too? Then, please share!!
Did the post resonate with you?
More importantly, did I answer the questions you have about this topic? Let me know in the comments if I can help in some other way!
Your comments are not just welcomed; they’re an integral part of our community. Let’s continue the conversation and explore how these ideas align with your journey towards Money Bliss.
This post may contain affiliate links, which helps us to continue providing relevant content and we receive a small commission at no cost to you. As an Amazon Associate, I earn from qualifying purchases. Please read the full disclosure here.
Money is a tricky concept.
It can be both the best and worst thing in your life depending on how you manage it.
Understand how to manage your money wisely and apply a few helpful tactics to your daily life. Simple habits will help you manage money better every day.
You must make money management easier and understand what types of pitfalls to avoid while we’re at it!
The following are a few ways to manage money. You can save it, spend it, or invest it.
There are many ways to manage your money wisely, but you should always start with your own control. You might not make all the choices that are right for you, but you must be prepared for the future.
This blog post provides tips for managing money, avoiding common mistakes by other people, reducing debt, spending wisely – these are just some examples of topics covered.
If you are ready to learn how to manage your money like a millionaire, then you are in the right place!
How to Manage Money Wisely
The key to managing your money is following the steps that are outlined in this article.
Financial stress can be managed by following the steps of managing money wisely. It is important to prioritize spending, don’t overspend on things that are not necessary, and learn about saving too because it will help you move towards financial stability.
You can learn how to properly manage your money with these swift mindset changes.
Below are 10 money management tips that will help you make better use of your finances.
1. Build a Firm Foundation
In order to make money better, people should set a firm foundation for themselves. This means setting up a financial strategy and making sure you have a plan in place. It also means having the right mentality about money and spending less than what you earn every month to avoid debt.
The first step is to establish a firm financial foundation, which means you must spend less than you make, save money for emergencies, and get out of consumer debt.
2. Design a Money Management Blueprint
A financial blueprint is a tool that can help you to build and maintain your money.
The problem for most people is they are starting at one place in their financial journey and are stuck on how to move to where they want to be.
That is where you need to follow the Money Bliss Steps to Financial Freedom. These are the exact steps to help guide your journey and a helpful blueprint to follow.
By taking each step one at a time, you will be able to make progress faster.
3. Define Your Goals
You must identify what your financial goals are.
What do you want?
Are you looking for more income?
Work fewer hours?
Something else entirely?
By setting money goals, this process will help you set a timeline and map out your journey.
4. Analyze Your Current Situation
This step is about taking stock of what you currently have to work with, such as income and expenditures, debts and assets, and savings.
This will help you decide what changes need to be made so that your goals can happen.
Honestly, this is probably the hardest step, and when most people give up. Taking a look at your true financial picture can be scary and painful to do.
5. Get on a Budget
Money is a source of stress for many people. It can be difficult to manage money when it’s not well-organized and set up properly.
In order to make sure that your money does not continue being a source of stress, create a budget and track spending!
A budget is a plan that helps you organize your money so that it can be spent effectively. It also shows where your money goes and what you are spending it on. Budgeting is an important part of managing money wisely because it helps you stay within your financial means, which ultimately saves you from living paycheck to paycheck or needing to borrow more than needed.
To create a budget, first set aside time for research and planning (this will take one day). Then create and write down the basic budget in a well-organized manner. It is important that you have a budget that works with your lifestyle and spending habits, so take the time to create one that fits what you need.
Some people go into budgeting with the goal of changing everything, but this is not necessary.
It’s important to make sure you’re realistic about your goals and target in order to get the most out of it. This will ensure you can meet your financial targets without breaking account after account or losing track of what has been spent already.
6. Say No to Debt and Create a Plan to Pay Off Debt
Creating a plan to pay off debt is crucial in order to reach financial goals.
It is important to create a plan to pay off your debts in order for you to be able to manage them better. High-interest rates should be tackled first, then work your way down through the rest of the debts.
The other key aspect is to stay out of debt. There is no need to buy something you cannot pay for in cash today.
Tools and tips to help you pay off debt:
This includes creating a budget and sticking with it, getting out of the habit of using credit cards, and saving money for an emergency fund.
7. Track Spending
Tracking expenses can help you see where your money is going so that you can make better decisions. For example, tracking your spending will allow you to know if the $200 concert was worth it.
Tracking spending will help you manage your money better.
It is important to be aware of how much we spend and what we spend it on so that you can make the best financial decisions possible.
This will help you to manage bills and save money.
8. Save Money
Every month, save money and put it in another account to be used in the future.
In order to make large purchases, it is important to have money set aside for that purpose. It is also a good idea to budget and save money in case there is an emergency.
An important phase in making smart money management tactics is to start investing as soon as you can. This is how you make your money work for you. Learn how to start investing.
9. Invest in your Financial Future
Almost a third of older Americans have nothing saved for retirement. That is a statistic you do not want to be a part of.
It’s never too early or too late to start saving for your retirement.
You should always be mindful of the future and plan accordingly. Whether it is through a 401k, IRA, Roth IRA, or other investment vehicles that you can contribute to in order to save up money for when you retire; make sure that whatever vehicle you choose gives an appropriate return on your invested funds (e.g., stocks).
In order to learn how to properly manage money wisely, you must be contributing to your retirement accounts. It may seem like a long way off until it is not.
10. Be Persistent
Managing your money can be a difficult task.
There are many ways that you can take control of your money situation and make it easier for yourself.
When it comes to managing your money, persistence is key. You’ll need to be persistent at all income levels in order for your savings and investments to grow.
How to Manage Money Effectively Now
Only do what you need to, not what you want to or can afford. Set up a budget and stick with it. Pay yourself first before buying anything else. Always save for the future, even if that means sacrificing now on some luxuries like eating out more often or setting aside money for retirement since your employer doesn’t offer one of those options yet.
A budget is a plan for how much money you will spend in each category every month. This will help you to pay off debt and reach your financial goals.
1) Create a monthly budget.
2) Track your progress in the spreadsheet throughout the year.
3) Make sure you’re saving at least 10% of your income/income minus loan payments, bills, and other expenses for emergencies and savings.
4) Pick one of these how to manage money books.
Take Action!
This step is all about taking the necessary steps to achieve your goals.
Again, this will vary for each individual and goal setter, but might include: cutting out unnecessary spending on luxuries; increasing income by asking for a raise or starting up a side hustle; and spending less on debt repayment by extending the term of your loan.
Be Patient!
This step is about being mindful that not every goal can be accomplished overnight, but it will happen with dedication and patience.
Be patient with yourself, your progress, and the change that is happening in your life as you work on achieving these new goals!
Are you Ready to Manage Money Better?
Learning how to manage money can be overwhelming when you haven’t built a strong foundation with money.
We have covered ways to make your life easy and money management better.
You need to learn how to manage your money.
You have to be the one to implement these tactics.
Proper money management ensures better outcomes with your finances.
From all of the free and paid budgeting apps, here are our top budgeting apps to check out!
This section may contain affiliate links, which helps us to continue providing relevant content and we receive a small commission at no cost to you. Please read the full disclosure below.
Empower Personal Wealth, LLC (“EPW”) compensates Money Bliss for new leads. Money Bliss is not an investment client of Personal Capital Advisors Corporation or Empower Advisory Group, LLC.
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What do you think of when I say, “smart with money”?
Do you remember any significant life events such as landing your first job after college or signing up for a lucrative opportunity to invest in the stock market?
Most likely not.
Because those didn’t happen until later on in life and we were already smart with our money by then. But there was no rocket science behind it: we just learned about saving and investing early on and took action that eventually yielded positive results.
And if you didn’t, there is no need to fret. You are in the right place and everyone has to start somewhere.
It’s not long before you start to wonder how much richer your life and bank account would be if you had started earlier.
So, let’s do a reality check: what is the difference between investing 10 minutes per day and putting $10 into an investment each month?
A sensible answer would be that investing 10 minutes per day is worth $1,000 in a year.
Your time has value and you are getting richer by the minute!
So, what are you waiting for?
Let’s learn how to be smart with money.
How to Be Smart with Money
Money touches nearly everything we do in our modern society.
It’s what keeps the wheels of commerce turning and enables people to get by without physical labor, so it is important that you know how to manage your finances well.
To be smart with money means understanding its power and spending on what matters most for your life goals.
You need to make sure you are paying for your day-to-day expenses while saving for emergencies, retirement plans, and long-term investments like a home or college education.
Money helps us to achieve our goals and dreams, increase our quality of life, and buy everything we need or want.
If you’re just starting out with your finances then this article is for you! I will give some basic steps on how to be smart with money.
In other words, this article is a crash course on how to make your money work for you! You’ll learn what financial independence means and why it’s important to have a large enough nest egg. Read more now!
Why You Need to be Smart with Money
This is exactly how can I be wise with money.
The most important thing is to cultivate the habit of saving money. The fact that you are reading this article likely means that you understand how important it is, but if not then it’s time for some serious change! If your goal in life is security and doing something meaningful with your life, then building wealth will be a significant step towards achieving those goals.
When we have enough money saved up, we can start investing our funds into different assets such as stocks or real estate so that they grow and compound. The more money we have, the more freedom and control we will gain over our lives.
There are many ways to be smart with money. Here are some suggestions that can help you save, invest, or earn more money.
7 Steps to Be Smart with money
It’s not easy to be smart with money, but it is possible.
Start by building a budget and identifying your spending habits. It takes time and hard work, but once you’re on track for saving money consistently over the long-term, you will find yourself in a much better position financially than those who are constantly struggling or living paycheck to paycheck.
Here are the exact steps to follow:
Step #1: Set Goals
Set goals for yourself. It’s important to have clear, measurable, attainable goals that you will be able to achieve in order to keep your motivation up when you are working towards them.
In order to have a better future, it is necessary to start saving for the future now and not wait any longer.
Set goals and save money every month so that when your goal is achieved, you can spend more time enjoying what life has in store for you.
In order to set goals, it is best to reflect on what you want in your life.
What do you want to know?
Who do you want to be?
What do you want to experience?
What is your purpose in life and how will this help you get what you want?
It’s also important to make a plan for achieving these goals.
For instance, if you want to be a millionaire, what are some steps that you can take today? Maybe it means getting more education or saving up for retirement.
You have the power to set goals and make plans to achieve them.
Action Step: Dig deeper into making smart financial goals.
Step #2: Managing your Budget
A budget can be a valuable tool for managing your money and preventing financial stress.
More importantly, to become smart with money is to create a budget that you can follow. You should also save your money, especially if you want to build wealth.
Managing your budget is a step-by-step process that requires you to have a budget.
You should start by setting up a spreadsheet to track your income and expenses. The next step is to create a budget that reflects your financial situation. You can use an online Google Sheet, Microsoft Excel spreadsheet, or personal finance software like Quicken.
Action Step: Dig deeper into how to make a budget.
Step #3: Paying Off Debts (non-mortgage debts)
Dealing with debt is difficult enough, but it can be made easier by paying off your monthly payments.
Paying off debts is the process of getting rid of outstanding debt and freeing up cash flow. This can be done by creating a plan to get out of debt, avoid taking on smaller manageable debts or simply by not spending as much.
Pay off your high interest debt first, such as credit cards and loans. This will help reduce the amount of interest you pay each month.
When you are able to pay off your debts on a regular basis, the interest rates will go down and this will save money in the long run.
Paying off debt faster and building wealth is easier than ever by following this action step below.
Action Step: Dig deeper into how to get out of debt.
Step #4: Save More Money
Save more money is a step in the process of achieving financial independence.
Saving money and building wealth is something that anyone can do. Once you get into the habit of saving money, it becomes easier to increase your savings rate or build up an emergency fund.
This step involves taking on additional work and increasing your income so that you can save more. By saving more money, you will be able to reach financial independence faster.
It is important to create an emergency fund and invest in a money market account. This allows you to save for future goals and emergencies with less risk, as well as build wealth faster.
Action Step: Pick a money saving challenge for you!
Step #5: Track Expenses
Track expenses is a phrase that means to collect or record the money that you spend on various things over a given period of time. This includes bills, groceries, and anything else expenditure-related.
Track your spending or review debit/credit card transactions and receipts to begin to understand where your money is going.
This will help you stay on top of what you are spending so that you can be more efficient with your finances.
Track your spending habits to find the big leaks in your wallet. You should know what you are spending money on, where it is going and how much you spend.
For at least a month, track your expenses in order to get a better understanding of where you can save. This will help you set goals and make conscious decisions about money management.
Action Step: Try a no spend month to prioritize your spending.
Pick a money saving challenge for you!
Step #6 – Increase Income
There are numerous ways to increase your income. You can increase your income by working more hours, starting a side business, or taking on additional responsibilities at work.
The fastest way is to think of businesses, products, or services that people want – use Google to find the products and advertise your niche. The benefit of working for yourself is there are no income limits on what you can make.
Many people want to make money online, but most of them need help figuring out how to do it.
To start, you need to figure out what your skills are and then find a niche that is in demand. For example, if you have good writing skills, it might be best for you to try blogging or find freelance work.
Don’t give up. If you want to make a lot of money, you have to put in the time and effort!
Action Step: Find ways to make money fast.
Step # 7: Invest Wisely
Investing wisely is the act of making investments that will provide positive returns.
Investing in stocks, bonds, or other types of securities can be risky, but it can also make you rich. Investing wisely means understanding the risks and rewards of your investment.
If someone asked you, “What is the smartest thing to do with your money?” The loud answer is to invest money consistently.
Investing early on and taking action eventually yielded positive results.
Investing is a marathon and not a sprint, so we need to start small and take it one day at a time.
Investing in a variety of assets is the best way to maximize your returns. Invest only in what you know and understand, invest for the long term, and diversify investments.
Action Step: Learn how much you can make in stocks.
10 Simple Smart Money Tips
On Reddit personal finance, you can find hundreds of answers to what is a money smart person, which is great but can be overwhelming.
Smart money tips are a great way to build wealth and get rich faster. These smart money tips will help you learn more about personal finance, save time on your monthly expenses, and grow savings for the future.
Here are specific ways you can become money smart today:
1. Build an Emergency Fund
An emergency fund is a savings account that’s been set aside for the unexpected.
It is used to cover emergencies, such as car repairs or medical emergencies, and can also be used when you have a job that doesn’t offer health insurance.
It’s important to set up an emergency fund because unexpected situations can happen at any time, and you won’t be able to use your credit cards or other debt to pay for them.
2. Save for Larger Purchases and Expenses
Save for larger purchases and expenses is a financial planning strategy that entails saving a certain amount of money each month to put towards future, much bigger purchases or expenses.
It’s important not to spend all of the money you save, as it’s possible that the future expense will not come to fruition.
This is exactly how you stay out of debt.
3. Steer Clear of Debt
Keep your debt low, and pay it off when you can.
Good debt is debt that will help you reach your goals in the future or help build a business. Bad debt is debt that you will not be able to pay back, and if you default on this type of debt, it can have a huge impact on your credit score.
To get out of debt, figure out how much you owe on various debts and decide what to do with the money.
4. Start Investing for Retirement
Many people have a hard time saving for retirement. This is unfortunate because of the power of compound interest, which means that you will earn more money on your investment over time.
Start saving 15% of your income as soon as you can for retirement. This will allow for passive income later in life.
The best way to start investing for retirement is by setting up a Roth IRA.
You can then invest your money with low or no fees and earn tax-free returns until you retire.
This means every time you get a raise, put that extra cash into an account that will be used for your retirement.
5. How to Save for Kids’ College
There are a few different ways to save for kids’ college. One way is to pay for their education through a 529 plan, which is a tax-advantaged savings account that allows you to save for college expenses. Another way is to use a mix of tax-advantaged and taxable investments like an IRA or 401(k), which will take some time to build up your savings but will allow you to invest in stocks, bonds, mutual funds, and other investments that are safe for retirement.
The best way to save for your kids’ college is to start saving early.
Also, you need to check out this scholarship program to lower the cost of college.
6. Find a Good Credit Card
Credit cards offer the best interest rates on purchases, and they’re easy to find with little risk. Apply for one that charges no annual fees and offers a balance transfer promotion.
Even better, you want a credit card that offers you cash back on your purchases.
7. Talk about Money
In order to be smart with money, it’s important that you talk about finances and learn from them. You can normalize talking and learning about finance by using a planner or financial statements.
It also helps to meet up with other people who have similar values in the community so they can help support your journey towards wealth building.
By talking openly about finances and learning how to be smart with money, it helps people get wealthy.
8. Learn about Money
Money is a topic that most people know little to nothing about, and it can be hard to get started.
However, Money Bliss provides some helpful tips on how you can begin building your wealth in the simplest way possible.
Wealthy people are getting richer by staying up to date with money matters.
Building wealth starts with thinking about your finances the right way. It’s not about losing weight or running a marathon; it’s about how we use the resources we’re given and the smart money management skills we need to get what we want out of life.
9. Know the Purpose of Money
Most people believe that it is “the key to happiness” to have enough money, but studies show this is not true.
We know money does not buy happiness, but it doesn’t mean you should live without it.
In fact, you need to know how money helps you find time freedom.
Time freedom is a relativity new concept; yet, it is the driver behind finding happiness with money.
10. Be Aware
Awareness of spending habits, saving, and donations are all examples of smart money skills.
By understanding how your current income is allocated to different expenses–including the ones you can’t control like mortgage rates or gas prices–you’ll learn what really drives your monthly budget.
When it comes to money, you should be smart about your spending habits. By doing this, you will have a better understanding of how much money is coming in and going out so that you can save more or donate more.
You should also know the difference between saving for the future vs living day-to-day expenses because these are two different things.
There are many perspectives on how to manage money. And honestly, there isn’t one opinion that dominates from another.
That is why investing in yourself to read some of the best books on how to manage money is key to long-term financial success!
While many of the concepts may be similar, there is ALWAYS something unique I learn after reading each book.
Happy reading!
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amazon.com
Hands down this is one of my favorite books on how to manage money of all time.
The reason is simple.
It is easier to follow regardless of your background, knowledge of personal finance, or love/hate relationship with numbers, and money savviness.
You cannot learn how to manage money successfully without reading this book. This is one of the best gifts that you can give.
Key Takeaways – Creating your F-you fund will dramatically change your financial independence and your future.
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amazon.com
This book by David Bach is the inspirational story you need when motivation is low to stay on budget.
You learn the secret to automatically secure your future – all through automatically saving money. This is a real system that any person can follow.
If you are struggling to stay on course and motivated, then you need to pick up this book. Once you read it, then pass it along to a friend to keep the motivational and accountability train going.
Key Takeaway – Automatically saving 10% early on will guarantee your millionaire status.
Photo Credit:
amazon.com
This book covers every aspect of money from debt, saving accounts, automating finances, set-it-and-forget it investment strategy, how to handle big purchases (car, house, wedding, kids) plus how to negotiate a raise at work.
These are the basic principles on how to manage money that needs to be taught in school. Call this book your beginner’s guide on managing your finances and setting yourself up for long term success!
Take control of your financial situation. By becoming active, you don’t have to continue to hold for a magically change.
Make sure you get the 2nd edition that was revised in 2019.
Key Takeaways – Ramit Sethi, the author, provides you word-for-word scripts that will save you thousands of dollars on loan interest and lowering all of your expenses. That alone is worth the $9.
Photo Credit:
amazon.com
The goal is to become financially independent as quickly as possible.
This is something the author Grant Sabatier has achieved and retired at the age of 30.
He offers counter-intuitive advice about money so that you can actually live the life you want. This FI movement is picking up speed and something that you shouldn’t ignore regardless of your age.
Key Takeaways – You will not walk away from reading this book the same person.
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amazon.com
This is what we all dream of… be set for life. Not to have to worry about the next paycheck coming in. Running out of money each month. You want money in the bank and the freedom to do what you want to do.
Become set on escaping the 9-to-5 grind and lay a solid foundation with money. According to the author, Scott Trench, you must be willing to work harder and smarter than the average person.
Find the motivation to conquer your financial goals early on.
Key Takeaway – Be prepared to start saving 50% of your income while still enjoying life’s luxuries at a younger age.
Photo Credit:
amazon.com
This recent release is about how you behave with money. The decisions that are made on the go and not when looking at a spreadsheet.
The book is filled with 19 short stories on how emotions play such a big part with how we handle money. Everyone handles money and investing differently and that is okay, but learning how to know what works for you.
Key Takeaway – This book is meant to be thought provoking on why we do silly things with money.
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amazon.com
This is the perfect book for beginners written by a (retired) millennial.
You will walk away with a solid understanding of budgeting and why tracking your net worth will boost your money management efforts.
She puts everything into simple terms and provides uncomplicated and realistic solutions to handing your finances.
Key Takeaway – This book is loaded with sass and humor, so you will find the lessons upbeat and honest to a normal dreary topic of personal finance.
Photo Credit:
amazon.com
The long term reason to save money today is to not work for years. If you want a drag on your portfolio by using a financial investor, then don’t read this book.
If you want a classic guide on getting smart about the stock market and becoming financially independent, then this book is for you.
The author teaches how to make index fund investing work for you and help you to achieve your financial goals. Plus with having little risk.
Key Takeaway – The investment scene doesn’t have to be scary and confusing after learning the basics of investing and creating a simple portfolio.
Photo Credit:
amazon.com
One of the best ways to build income is to become your own boss whether, through a side hustle, real estate investing, or building a business. However, too many times expenses swallow business before they ever churn a profit back to the owner.
Mike Michalowicz will lays out the Profit First Formula, which will transform any business on the way they manage money.
This is a must-read for anyone owning their own business, a board member for a corporation, or looking to start their own business. This is how you build a sustainable, no-ceiling income.
Key Takeaway – You will finally know how much you have to invest in your business and always take home a profit.
Photo Credit:
amazon.com
The last book on the top 10 best books to manage money isn’t even focused on money!
It is how we handle and deal with our stuff. Unfortunately, buying all that stuff comes at a cost and normally a big price tag. Plus the cost to maintain the stuff we already own.
The book by Joshua Becker helps you to open your eyes to a slightly different lifestyle that may change your life forever.
Key Takeaways – By learning to live with less stuff, there is more money in our budget to spend on other things or experiences.
Ready to Be Smart with Money?
Being smart with your money is about making good choices.
It’s important to know what you need and what you don’t because if you spend too much on things that aren’t necessary, you’ll never save enough to buy the things that are important to you.
Becoming rich and building wealth is all about making smart choices!
You need a goal, sometimes called an objective or an endpoint, and you need to set up a plan.
There are many steps that can help you be smart with your money. For example, never save for “a rainy day”; instead save for all the days.
The steps to be smart with money are not difficult, but the effects of being smart with your finances will last throughout your life.
Know someone else that needs this, too? Then, please share!!
Did the post resonate with you?
More importantly, did I answer the questions you have about this topic? Let me know in the comments if I can help in some other way!
Your comments are not just welcomed; they’re an integral part of our community. Let’s continue the conversation and explore how these ideas align with your journey towards Money Bliss.
This post may contain affiliate links, which helps us to continue providing relevant content and we receive a small commission at no cost to you. As an Amazon Associate, I earn from qualifying purchases. Please read the full disclosure here.
Are you struggling to build your wealth so that you can live the life you want?
The problem may not be what you think it is.
If you are just working hard to earn more money, that is not enough.
You must also take the time to work on clearing money blocks within your brain.
The problem may not be what you think it is.
It is no secret that money blocks are abundance blocks.
How many times have you thought about how much cash you would need to get rid of your current financial situation?
If not, then it’s time to explore the fastest way out of this dilemma: removing all financial blocks.
Money blocks are on my mind today because–as any woman who wants to have a baby will tell you–the amount of time, money, and energy required to conceive, raise a child or even just get pregnant usually ends up being more than what one would typically invest in creative endeavors.
It’s important that we understand the blocks within us so that we can clear them out before they manifest into physical manifestations in our bodies.
There are infinite possibilities for new experiences–and with these opportunities come new ways to express ourselves creatively, spiritually, emotionally, or materially through whatever medium we choose.
The blocks for abundance are the most insidious because they are completely invisible, making them tough to spot.
You must learn how these blocks manifest in our lives and what can be done about them. Today, you will find some practical steps you could take to remove these blockages from your life if you find yourself struggling with this issue!
Enough of dealing with these painful and frustrating obstacles, let’s take simple steps on how to remove money blocks with ease.
What are Money Blocks?
Money blocks are negative subconscious beliefs about money that limit one from achieving conscious desires.
Money blocks are the result of years of subtle and sometimes not so subtle messages we’ve received about how to be “successful” in life.
They can play a role in limiting our personal abundance as well as others’. For example, if you believe that money is bad or that it will cause you problems, then you may find yourself reacting negatively whenever your income increases.
What are money beliefs?
A person with money blocks may experience feelings of guilt about spending cash, or they may think that money is the source of their problems. When someone has a lot of these beliefs, it can be difficult for them to become independently wealthy because they are so limited by their subconscious thoughts and behaviors.
The concept of money blocks is fairly new. The term was coined in the early 2000’s, and describes a mindset that people have when managing their finances.
Money blocks are usually caused by fear or anxiety stemming from negative thoughts about money and how much we need to invest for our future needs.
Your money blocks hold up your abundance and ability to become financially free.
The good news is the more you work on changing the behaviors, the easier it will be to remove them.
Money is 80% behavior and 20% knowledge.
It’s important for people to understand how they can change their behavior because there is a lot of power in making better choices with regards to what we spend our time and energy on each day – especially when it comes down to money!
How do Know if you have a Money Block?
If you are wondering, what are some limiting beliefs about finances. Then, you probably struggle from a money block.
It may be something like “I won’t let myself do anything unless I have enough money,” or “I won’t allow myself to be vulnerable.” Such blocks can cause you to take on debt or make the wrong decisions, which is not beneficial.
If you have a money block, it is because you are holding onto an idea that does not serve your purpose.
There is an energy around money that often causes blockages within the body. It can be difficult to determine if you have a money block because there are so many different types of blocks. The most common type of money block is the abundance block, which occurs when too much energy and focus is placed on one area of life instead of others.
The best way to know if you have a money block is by taking time to meditate or do yoga for five minutes daily with your eyes closed.
If you feel uncomfortable or notice that the energy around money keeps changing, then it is a good sign that you have an abundance block.
There are many things that can manifest as a money block. Therefore, it is important to know what your personal money blocks might be so you can release them and move forward with financial abundance.
How do you break through money blocks?
One way to break through the money blocks is by identifying problems with your current thought process.
There is a wide variety of ways to break through money blocks. One way is to start your own business and work hard until you make enough money that the blocks are no longer an issue. Another way is to focus on a different area of your life. You could try being part of a community where there are more opportunities for you to make money.
You have to follow through on the process.
What Happens if I Don’t Clear Money Blocks?
You cannot make more income without having abundance blocks.
Until you shift your relationship with money, you will continue to create the same outcomes. This is because you conditioned yourself to believe the limits on the possibility of making or receiving income.
It is important that you recognize these financial blockages! Then, you can understand what they are doing in order to break them down and release the energy tied up in them.
Abundance blocks happen when we believe certain things and our reality reflects those beliefs. If you have a money block, your relationship with abundance is out of balance.
In order to get rid of the blocks in the system, it’s important to identify them and understand why they exist.
Money Block Quiz
Many of us have obstructions around money that prevent them from reaching their goals, but there is one easy way to see if you have a money block.
Quickly reveal whether or not your energy is blocked by this area of your life. Then, you can come back and figure out removing money jams from your life.
Simply takethe Money Blocks quiz.
The best way to identify if there’s a specific thing in your life or mindset that’s causing stress around finances would be to ask yourself these questions:
Section 1 – Your Desires in Life
Create a list of all the things you want.
List 5-10 specific things on this list.
Look at how much time or effort these items require.
Look at how much money you need to achieve these items.
Put a dollar amount next to each item.
Answer Key – If the time or effort required is more than what you make in one year, then there’s your issue. You have a money block.
Section 2 – Spending your Time
What am I not spending enough time doing?
Did something happen recently where my emotions were particularly high?
Do I desire time freedom?
Answer Key – If the answer is yes, then you probably have a subconscious money block.
Section 3 – Triggers around Money
What are your financial failures?
What are your emotional triggers for spending cash without realizing it?
How did your parents relate to money?
How does society teach you about money and status?
Answer Key – Everyone’s answers will be personal to your background, upbringing, thoughts, and experiences. The key is to recognize money obstructions and breakthroughs can slowly happen.
The problem with being broke (or feeling broke) is that it leaves you feeling like there’s never enough of what you need to get ahead, but the good news is – if you want to break through your money barricades, it’s actually pretty easy.
Top 10 List of Money Blocks
Money mindset jams are different for everyone, but there are some common types.
For example, if you find yourself feeling anxious or stressed when thinking about financial-related topics like paying off debt, it could be because you’re subconsciously avoiding something that will help your personal finance situation in the long run.
Let’s learn how to identify 10 common money blocks.
1. Fear:
This is one of the most common stonewalls that you can experience and it can affect how you make decisions about your future.
Fear is a natural emotion, which is caused by the concept that money will cause you to act in certain ways. Thus, not allowing you to take risks and put yourself in danger.
Fear is often an emotion that comes with money, but this does not have to be the case. There is a lot of wisdom in being able to separate one’s emotions from financial decision-making.
For example, if you feel fear when you’re in a position to make an investment, then that could be because of your limiting beliefs.
2. Money Avoidance
Money avoidance happens in one of two ways.
The first way of money avoidance refers to the practice of intentionally decreasing the amount of money one spends. Money avoidance is achieved through various methods, such as not spending any money for a set period of time, using alternative currencies, or just living without money.
The second way of money avoidance is looking the other direction for anything that has to do with money. Money avoiders are people who have less money and a lower net worth than non-avoiders.
Money thoughts are so bad, so they sabotage themselves in an unconscious effort to have as little of it as possible.
You want to enjoy living life with intention.
3. Regret:
A money block of regret is guilt that is inflicted on oneself in the form of an arbitrary amount of money.
If you find yourself feeling regretful or sad about something that happened in the past, then that may be a sign that you’re letting the past define your future.
Some examples include:
The regret individuals may feel after spending cash on things they later find were not worth the cost.
A person who has accumulated a debt that they cannot afford to repay.
Regretting the potential opportunities you missed to make more money.
It is often difficult to admit this feeling because it often involves acknowledging that one is not living up to their own standards.
4. Money is Evil:
Money is a symbol of power and control. It gives people the ability to dictate what they need or want, but it also limits individual freedom and diversity by instilling fear in others about being unable to meet their basic needs.
Money is an important tool to be used for good or evil depending on how it is handled.
There are many ways to express your individuality without the use of money.
5. Earning Money is Hard:
Another money chokepoint is the perception of the difficulty one has in earning income. All because of puritanical values about how to earn or spend money.
In order to earn money, we need to move away from the idea of earning and deserving. One way is through creative endeavors such as finding something you enjoy while you make extra income.
Earning money is harder than expected, but it’s not impossible. You can make a lot of cash- both online and offline- with the right skill set and a bit of hard work.
6. Laziness:
Many people despite knowing what is necessary for their financial well-being are stuck because they will not do what is necessary to move to the next level.
When our subconscious mind allows us to create a specific mindset and belief around money, it can have a detrimental effect on our relationships with other people and ourselves.
If you find yourself feeling lazy or unmotivated about doing anything related to money, it might be because you feel like there’s not enough time or you are too afraid to try.
7. Money Status
Money status is the state of a person’s bank account balance, and specifically their net worth. Many people relate their money status to how they feel about their financial situation rather than the reality.
People with money status scripts believe their net worth determines their self-worth.
People may overspend in an attempt to convince others they’re financially successful.
This is often seen with those who are unemployed and trying not to look like it. On the flip side is those who have gained some wealth but want their friends and family members to think it’s even greater than what the reality is.
Is money everything?
8. Debt:
If you find yourself feeling anxious or stressed when thinking about money-related topics like paying off debt, it could be because you’re subconsciously avoiding something that will help you to prosper.
Paying off debt is a huge financial milestone most everyone will experience in their money journey.
You have to determine why you are stopping yourself from the possibility of getting out of out debt.
9. Money Worship
Money worship is a type of idolatry, which can become addictive and destructive for many people.
Any type of money worship can have negative effects on the lives of those who practice it, as well as those around them. Common signs of money worship include hoarding, guilt about spending money, and anxiety over not having enough money.
Money worshippers believe that money will solve all their problems and bring happiness, which often leads them into financial ruin.
In short, money worship is the belief that you need more and more money to live a happy life. They also believe that they cannot have enough because they will never be able to afford all the things in their list of wants.
10. I’m Always Broke
This is always questioned by people who are struggling financially.
Since everyone can be rich, many people mistakenly believe those money impediments are the only type of abundance block that exists. They actually think they are incapable of breaking the I’m broke cycle and will never find contentment.
Meanwhile, scarcity blocks can dictate how much money they make no matter how hard they try. You are stuck in the mindset of being constantly poor.
How to Remove a Money Block
Money blocks are a common obstacle for anyone trying to make progress in their life.
In order to learn how to overcome these blocks, you need to identify what is stopping you from making progress.Then, take immediate action to overcome these blocks.
Money mindset will thwart your progress and are common problems that many people encounter.
They happen when you feel stuck in a situation because of your feelings about money, or your past experiences with money.
This is how do I stop money hindrances…
Step #1 – Uncover the Subconscious Mind
The subconscious is the part of the mind responsible for processing information and memories that are not currently being processed by conscious awareness. Also, it is the memories that remain after the conscious mind has processed the information.
The subconscious mind is the part of your brain that stores patterns and programs. These thoughts are created by society, from parental programming, and societal perceptions of what you can or cannot do.
You are unconsciously creating your own self-fulfilling prophecy.
This means you will continue to create the same outcomes until you shift your relationship with money.
There are different ways for shifting this relationship, such as through meditation or asking yourself what you want instead of what you don’t want.
Action Step: Write a list of the money blocks you struggle the most with and the factors that drive them. Before you make a financial decision, see if your money blocks are driving your thinking.
Step # 2 – Become Aware
Awareness is one of the biggest challenges that we face. You are probably not aware of what’s happening and so they don’t do anything about it.
Awareness is crucial to long term financial success.
The most difficult part of finding your limiting beliefs is simply noticing they are there.
You need to be really honest with yourself.
When you are aware of what is happening, the root of the problem will become clearer and easier to address.
In order to create a reality that is in line with what you expect, awareness is key.
Action Step: Before you make a purchase, think about the real reason you are acting in this way. Keep a notebook of blocks you come across and how you dealt with them.
Step #3 – Reframe Your Beliefs
Money blocks are beliefs that prevent you from having the things that you want. In order to change this, you must reframe your thoughts.
Reframing means rethinking an idea, concept, or belief.
It is a cognitive process that changes the way you view something so that it fits better with your current beliefs. This allows for a more holistic perspective that is not bound by your subconscious mind or whatever you have been taught.
Reframe your beliefs by looking at them objectively and seeing where they come from.
When you have a money block, it can be difficult to see yourself as deserving of certain things because your limiting belief may say otherwise. Reframing your beliefs is key to accepting abundance.
Beliefs are just ideas in your head that aren’t true.
Action Step: You can choose to believe something or not; it’s up to you! Belief is only a thought, so you can use this power of belief to clear away money blocks.
Why Release your Money Blocks
Releasing your money blocks is a process that many people don’t think about.
It is not just releasing the blocks in one specific area, but releasing them throughout your entire being. It’s about releasing the blocks that are holding you back from your full potential and taking all of the money blocks out of your life.
It is very important to learn how to remove your money blocks. Then, you can actually move on with the game.
To remove a money block, close your eyes and focus on your breath for five minutes. Then, visualize all of the excess energy being removed from your body with your breath.
Money blocks are common in our lives, but can be removed with active awareness.
Write down your money blocks on tiny little pieces of paper to act as reminders that there is more abundance than we realize and will encourage us to take action towards achieving financial freedom.
The Abundance View of Money
Money is a means to an end. It should not give you meaning in life. In fact, it is a tool of motivation for achieving your goals and dreams.
Money can a good thing.
Money can buy comfort and security. However, some people have the wrong mindset of worshiping which derives from their desire for material wealth.
Throughout our lives, we are all taught to fear abundance.
Here are the most common ways in which this is taught:
Parents tell their children not to talk about money.
Never mentioning how much they make or spend.
Teachers who avoid talking about success.
Not allowing failures because it is not fair for students today.
People who thrive say they are broke.
These thoughts are often subconsciously triggered by our society and the messages that we have been taught throughout our lives.
This is why talking about money can be so difficult for some people!
You are afraid of the word “abundance.”
By understanding this concept, you will begin to better identify when your mind has an abundance block being triggered in relation to your personal finances or business plans.
In order to remove abundance blocks, it is important to understand what and where they stem from.
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Be prepared for what it takes to become set for life. There is more to life than money and you need to learn your dream. But, it all starts with your mindset.
Ready for Releasing Money Blocks?
Money blocks are negative beliefs about money.
Sometimes, these beliefs cause you to feel like you don’t have enough or that what’s happening in your life is not good enough because of the financial situation you’re in.
There are plenty of causes financial blockages.
It doesn’t matter how much money someone has; they can always choose something new and get it if they make a conscious effort to see things differently.
Money is a topic that can be difficult to talk about.
Sometimes, people get embarrassed by the fact that they don’t know how much money they have, or they’re worried about not being respectful by the amount of money they have.
Remember…When you have money blocks, it is time to reframe your beliefs. You can use the power of positive money affirmations and meditation to clear these blocks.
Today, we offered tips on what you can do in order to move forward with your financial goals, including breaking the myths that surround money-related topics.
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