Getting good with money doesn’t always come naturally. It’s a skill that takes time, patience, and discipline to cultivate. But trust us when we say that focusing on your habits and mindset around money can make great improvements to your level of financial abundance.
This #TalkMoneyWeek, take a read of our top five tips on how to get good with money:
Budget, budget, budget!
When you take the time to plan and finetune what you’re spending, it just makes life that much easier. So, if you’re seeking to get good with money, make budgeting your best friend. When planning ahead, you’ll want to take into consideration bills, luxuries and an emergency fund. Consistency will be needed to really see the benefits of budgeting long term, but if you stick to it, you’ll find yourself with a stronger financial footing, and more freedom in the long run.
Check out our handy budgeting tool here: https://bit.ly/3tf6O0J!
Establish your goals
Setting out a list of realistic goals gives you something to work towards and can really help you when it comes to saving up for something amazing like a dream holiday or beautiful home.
But here’s the catch: don’t make your goals so big that they’re scary and overwhelming. You want them to push you, but they must be achievable. Think ‘medium’ difficulty and you’ll find the perfect balance!
Build your credit score 📈
Crafting a great credit score will pay dividends throughout your life.
One way you can elevate yours is by always making payments on time. This allows lenders to see that you’re reliable and able to deal with credit in a responsible manner. Whether you want to purchase a house or take out a loan in the years to come, building up a strong credit score will help you out when it matters most.
Monetize your skills
Over our lifetime, we all pick up skills, and often those are the very skills that other people are after! So, you might want to try and earn extra pennies on the side from new ventures that capitalise on your unique skillset.
For example, if you’re an accountant, you could offer to do book-keeping on the side for local businesses. Or, if you’ve got creative skills such as copywriting, web design or animation, you could offer these out to small enterprises – you’d be surprised how many businesses are looking for exact skills you possess already!
Cultivate your money mindset 🔮
Your beliefs shape your world, and how you think about money is no different.
So, what do we mean when we talk about a money mindset? Well, it’s the set of beliefs that governs how you spend and handle your money daily. If you have a healthy money mindset, your thoughts might include: ‘I have the freedom to spend, but I can also hold back,’ or ‘My potential to earn money is high.’
If you have a more limited money mindset, you might feel like your ability to earn is low, or that when you are able to afford nice things, you don’t deserve to treat yourself – even occasionally!
Take the time to develop a more positive mindset about money, and you’ll start feeling abundant in no time.
Caveat: While Learning Nexus are here to share tips and tools for money management, we are not able to offer financial advice. If you are struggling, or need further advice on money management, please contact the CBA: https://www.citizensadvice.org.uk/debt-and-money/