Some people spend a lot of time being controlled by money, yet others are able to harness the power of money and grow their wealth to extreme levels. Whether you want to be wealthy or simply financially stress free, these steps can help get you there.
1. Know what you want
Do you want to get out of debt? Find out where you money is going? Save up for a house? Retire by 30? Own a fancy car, house, boat, or watch?
Whatever it is, be clear about it and don’t sell yourself short. Don’t settle for less than what you truly desire.
2. Have the right attitude
Certain attitudes can prevent you from achieving your financial (and life) goals. Do you believe money or the desire for money is bad? Do you think money is hard to get or is in short supply? These beliefs might let you become financially stress free but they won’t let you be wealthy.
If you think you require certain skills to become wealthy and that you cannot obtain those skills, you might be stuck in a fixed mindset. Get into a growth mindset if you want to have a more fulfilling and successful life.
3. Control your finances
If you aren’t in charge of your money, your money is probably in charge of you. If you are in debt or are struggling to build up savings, you know what I’m talking about. Get yourself a FREE Budget Template and read the blog post on how to create a budget to start taking control of your financial future.
You don’t need a budget if you’re financially comfortable, but this post isn’t about staying comfortable — it’s about getting out of financial stress into comfort, and it’s about making money your bitch so that you can leave comfort and become financially independent.
Understanding how much money you should be spending and earning based on your current lifestyle and earning capabilities, and what income you want to have in the future, are crucially important to getting to that future you so desire.
4. Educate yourself
Knowing where you are financially and where you want to be isn’t enough. You need to know how to get from here to there.
What budgeting and savings strategies will you use to build up some money? What will you do to grow your savings once you have it? Will you put it into your own business, will you save up and buy someone else’s business? Will you invest it while you stay an employee? Learn about the different methods of making money and pick the best strategy for you.
With your chosen strategy, read up on finance books and other materials that are specific to your chosen money making methods.
After you know what you want and have chosen your financial strategy, start setting goals. Make them SMART (specific, measurable, achievable, relevant, and time-based), and break them down into actions you can start taking today.
Plan out the next 5 to 10 years in rough terms, plan the next year in more specific terms, set benchmarks or mini targets for every month or three, and plan out the next couple of weeks in meticulous detail.
6. Make money (act!)
With your plan all set, act! You won’t go from your current position to being in absolute control of your finances if you don’t start making progress along your plan. A plan doesn’t necessarily make things easier but it does make it simpler — just follow your plan and you’ll get there eventually.
Tell a friend what your mini goals are for the upcoming weeks and months so that you’re held accountable. Understand what obstacles might slow you down and devise a plan to manage them when they get in your way.
And when things get tough and you start to feel like you’re struggling or failing, the most important thing you can do is not give up. When you’re at a point like this, don’t look forward to how much further you have to go, instead look back to where you used to be and be proud of the progress you have made.
Get out there and grab the life you truly desire!