MONEY MAKING MINDSET
Imagine when your friends invite you to go out to dinner and you don’t have a second thought, because you know that your finances are secure. BUDGET, this is one of the most important things to do in finance. Whether it’s written down, through your bank accounts or an app on your phone, whatever the case may be you MUST BUDGET.
You must successfully budget and plan your expenses daily, and I used to have the same problem that I know plagues some of you, of not keeping track of exactly how much money you have because you’re scared that you don’t have as much as you think you did – however this will only be detrimental to your future.
Believe me, especially in crunch time, it’s better to be safe than sorry. It helps to plan out what you can’t spend, what you have to spend, and then what you want to spend… and then hide some of the money you have left over.
Hiding money from yourself can be a very effective trick – I often find money that I’ve forgotten I’ve hidden that I hide somewhere else, simply because I know it will make itself useful later.Say you lost your wallet while you’re out having a good time – if you’ve planned your finances smart enough, this isn’t that big of a deal because
A) You didn’t carry that much money out with you in the first place.
B) Your debit/credit cards (a minimum of which you bring out with you in the first place) can quickly be discontinued.
C) You have a spare $20, $50 or something of the sort inside your phone case for emergency purposes – and this is such an emergency. This is important – as akin to having an emergency fund for basic necessities in life – having a minimum of a spare $2- somewhere on your person that you’re guaranteed to carry is especially useful in situations that you didn’t foresee coming.
When you want to go shopping (and are actually able to), you don’t have to fret too much about money because the money you are spending either is from a side income and doesn’t affect your direct flow of money, or is from savings that you put aside just for this occasion, and you have already budgeted such.
Building a successful side income that you do not have to touch unless you are withdrawing for purposes of pleasure or leisure, is one of the keys to successful finance. It’s why you will often find that business owners rarely own one franchise or type of business.
If you are looking to purchase a new product or experience (and I’m talking big purchases, not simple things like what type of food to order from the menu), it is important to carefully consider your purchase beforehand.
What I’ve found to always work is to take into consideration two key questions that I always use to determine whether the purchase is important at the moment, or even at all –
A) Do I need this right now or can it wait a week? If the answer is yes, than you most likely aren’t in a dire need for it (and are only buying it to appease some type of boredom or lack that you are feeling) and you most likely should wait. If you’re managing your money right, then your finances will be straight by the next week and you’ll actually have more money than you did before! You might be able to get a higher quality version of the item or even better, it may be on sale (NOTE: This can vary depending on if an item is on sale and when the sale ends. While I don’t necessarily use sales that much, most people do and if you can afford it, while it’s not affecting your cash flow and the sale ends soon – by all means get it).
B) Can I buy two (or at least 1.5) of this item? If the answer is no, you most likely don’t need to buy it at the moment – think about, for example if you just spent all of your money you saved up waiting to get the perfect dream used car and a week later you find out you need new spark plugs and a new alternator. If you follow my model, you have the money put to the side to maintain or supplement your purchase/experience, which is the integral point of this strategy. There is no point in buying an item if you can’t maintain it in case of emergency, this goes with cars, electronics, apartments and things of that matter.
Wastes of time and money should be minimized and eliminated every day, if you truly want to get into a money making mindset – and if you start making a lot of money online, you should know how to save and manage it.