Not everyone was born into wealth and often times we feel the pain & anxiety in tough financial positions. This can hinder us from succeeding in building wealth.
Over the years I had to deal with this, growing up surrounded by debt and not having great financial role models often meant that every time I ended up in a bad position it hurt me both emotionally and mentally.
This is a challenge over the years that has affected the confidence and mental wellbeing of individuals, more so with the rise of social media and the ‘so-called’ success that’s shown online.
As many entrepreneurs & professionals, we have huge ambitions and are talented, hard working and even owning our craft to be the best in our industry. But, more than often, our bank balances can take a hit and give us the feeling of wanting to curl up and give up on life. With more business occurring through personal branding & online marketing it’s essential that we look after our relationship with money. I am not saying we need to have it together but we do need to work on it just like any relationship.
Here are my tips which can help you remove this block and build momentum in a confident way, ultimately leading to owning your financial life as an entrepreneur or professional.
1. Awareness
It is easy to ignore and neglect our finances but how many times have we actually sat down and reviewed what’s going on. Do we really need these subscriptions? How much are we spending on Ubers and the lifestyle we think makes us happy, say by going out excessively with friends?
I’m not saying don’t go out or treat yourself, this point is all about understanding your financial health and your habits. Before we can improve we need to audit what’s actually happening.
Discipline = Habits = Consistency = Results, Confidence & Competency
2. Budget
Many people call this scrimping but with the rise of digital banking we are able to create pots and categorise our spending from essentials, treats and even goals. From every payment we can move our money into pots. Even if it is £20 in each pot. As these pots grow we can then create months of backup funding for a rainy day and if anything happens we know that we’re financially okay to live life without the pain and anxiety of money challenges. This creates and allows you to live with an abundance mindset. Here are some examples of pots that we can create:
- Bill Pot
- Rent or Home Pot
- Treats Pot
- Eating Out Pot
- Holiday Pot
- Tech Pot
- Car Pot
3. Lifestyle changes
Travel - I found myself spending hundreds on uber every month and even driving can be a lot when it comes to petrol, insurance and general wear and tear. Walking or using public transport keeps you fit but also allows you time to switch off from work on the journey home. Although it’s not always time convenient but financially you can reduce your monthly spend by half.
4. Discipline
Probably a reality check type of conversation we need with ourselves. Just like new years resolutions it is hard to stay on tip of everything and letting a few things slip can lead to a downwards spiral. I want you to remember the feeling you have right now and let that be your why, financial anxiety comes from a lack of discipline and control over our actions. Sit down with someone as your accountability partner too.
5. Money Making Skills
Just sat down with my accountant last week. She gave me advice of the challenge that most entrepreneurs, freelancers or even professionals face. It’s making more money. Believing in your ability in making money is the biggest asset you can have in life but here are 2 easy things to do which can make you money but they all come down to being able to sell or market yourself:
- The best way to do this is educating people about your area of expertise and then asking for the business. If they are not in a position to pay, break it down into a payment plan and follow-up when they are ready.
- Learn how to refer services or people that you love.
I made an incredible amount of money from referring my accountant, financial broker and even who I use for my day to day services. If it is not making you money, you can often get rewarded by saving yourself with discounts and offers. You can start a little group too, giving people hacks or interviewing people in the industry.
- 1-1 Consultancy
In the past 24 months mentoring has made me over £50,000 because I took my professional expertise and started teaching others. Often even from our jobs we have skills that are valuable to others. Package them up into mentoring or a course you can sell.
Hopefully this article has been of benefit to you - please do like, comment or share with your friends.
For those that want to learn more about hands-off investments or how to build your portfolio with other people’s money then get in touch at abdul@shakurinvestments.com