Have you ever wondered how your parents or family members got so “good with money”? Or how other people your age seem to have enough money to buy a house, pay for their kids’ college, or retire?
It might seem like they just got lucky — or they were blessed with a high-paying job. But the truth is, financially successful people usually aren’t “rich” in the traditional sense, and they haven’t done anything you can’t do yourself.
The biggest secret? They give their money a job.
Secret #1: Automate your finances!
Think you have to be rich to set aside money for retirement or other goals? Nope. It actually works best for couples and families who have a middle-class income. You just need to automate your finances — whether that means automatic withdrawals to a retirement account, paying your utilities automatically, or having a certain dollar amount transferred to savings.
Why this is important:
The minute you open your eyes every morning, you are faced with making decisions. Seriously, humans make over 35,000 decisions a day. Why add financial decisions to that? You can eliminate the stress of financial decision-making with automations!
Some no-brainer reasons to do this include:
- Freeing up that brain space so that you can focus on more important things in life. (Know your priorities!)
- Saving future you time and stress — and money!
- A higher likelihood that you’ll reach your financial goals.
Secret #2: Setting financial goals
Setting financial goals is a good way to give your money purpose. These goals can be anything from practical to “just for the fun of it” type things. What’s important to remember about setting financial goals is that these will and SHOULD take time to be met, and small movements lead to eventual big changes.
Some examples of financial goals are:
- Getting out of credit card debt. Some ways to begin tackling this are to break up payments into smaller pieces, stop using your credit cards between payments, and continue making progress by setting up systems and structures to continuously pay off your debt. (You can automate payments or even withdraw money into a separate account to help you pay off your card in chunks)
- Establishing an emergency fund. If your car breaks down, having access to an emergency fund can mean the difference between fixing your car and causing a major unexpected financial stress in your life. (Plus, when you automatically save into an emergency fund, you’ll be so relieved you’ve got the money when you need it — and you didn’t even have to think about it!)
- Saving for retirement. For some of us, this might feel far off, but if you can start systematically saving now, it makes a world of difference later. When you have money going into your 401k automatically the technical term is called “dollar-cost averaging” — you’re consistently investing new money into your funds, which means you’ll continue to grow your retirement funds as stock prices change. Again, this is why automation is so important!
Secret #3: You don’t need a ton of money
People who retire aren’t rich — they’ve just been in the habit of saving and investing for the majority of their working life. All you really need to do to save for retirement is set up a financial structure and then execute it. A little will go a long way and, eventually, you’ll start seeing that growth, like magic! You can also define what “enough” means to you.
Secret #4: You don’t have to be older to enjoy your money
So many people ask what it means to “live wealthy,” and it’s a lot simpler than you might think. Living wealthy could mean financial freedom, independence, or even just less stress. It could also mean more practical things, like being able to take that vacation you’ve been wanting to. When you have that money automatically pulled out, you don’t have to wonder if you’ll ever get to go — you’ll be consistently moving toward it.
Thanks for tuning in!
Thanks so much for checking out this first episode of The Everyday Money Show with Hannah Moore. I can’t wait to bring you even more money myth-busting and to help more people see how they can live wealthy now.
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- Be sure to check out the Everyday Money blog for more information like this to add to your financial plan, including: Simple Tips to Make Saving Easier (for Those Who Struggle to Save Money)
- Be more aware of where your money is going by using my BudgetingBlocks™, available right now in our store. This organizational product will help you to further visualize your money and track your income & savings. For only $49 you’ll receive 300 blocks in two colors, the Budget Blocks Values Exercise, expense and income trackers, and a step by step guide to YOUR new budget!