3 ways to revolutionise your financial health

Personal finance is hard. There are a million different areas to think about and manage, and it can be easy to throw it in the ‘too hard basket’. But if you break it down into easy steps, not only managing but growing your personal finances with success can be simple.

The best way to approach it is to think of your personal finance like a new year’s resolution. It’s all about setting a goal and then creating the right habits to achieve it. If you don’t have the right tools and knowledge, you won’t be able to achieve your new resolution and be caught in a cycle where your finances stay mismanaged without growth.

So how can we take the first step on the right path to success? Here are three ways to start thinking about your finances differently:

Don’t be afraid to seek guidance

When trying to reach your goals, don’t be afraid to get some coaching along the way. A wealth and finance coach can help you make a jump start on achieving your financial goals and provide you with the right advice that’s personalised to your current financial situation.

They can also act as an accountability buddy to make sure you stay on the right track along the way and make the path to success less daunting. If you have the budget to seek third party help, jump right in and also stick with them for the long term to help build a more complex wealth management and growth strategy.

But don’t fall into a trap thinking a finance coach will do all the work for you. Take the opportunity to absorb as much information as you can and learn what tools they are using to help manage your finances. This will help build your own knowledge and give you the confidence to continue to explore other areas of wealth building while watching your portfolio grow.

Set goals and achieve one thing at a time

If you’re full steam ahead on managing your own financial growth, don’t overwhelm yourself by setting complex goals that aren’t achievable. Remember that Rome wasn’t built in a day and neither is wealth (unless you’re one of the lucky ones to win the lottery!). So start small with a list of four or five things you want to achieve and then focus on those until they’re complete. This approach will give you a sense of achievement and help drive the motivation to keep at it.

And don’t be discouraged about the slow progress when it comes to your finances. Taking one step at a time to achieve your goals is better than no progress at all, and remember it’s all about setting better financial habits that will help grow your future wealth and set you up for the future.

And when you’re starting out, look to utilise free resources around you. Take a look at your local library for reading material that can help you understand the basics when it comes to financial wealth. Explore your local Facebook or Meet-Up pages to see if there are any wealth-building groups in your area where you can connect and network with like-minded people. Having a network around you can help you to leverage off other people’s knowledge, experience, and mistakes that can help with building confidence when it comes to self-managed finances.

Don’t try to keep up with the Joneses with your lifestyle choices

One area of your finances that can really hold you back from success is lifestyle creep. Naturally when we progress in our careers or get success in business, earning higher salaries can give us that sub-conscious boost to start spending more, causing our lifestyle spending to inflate.

But earning more money doesn’t equal automatic financial success. Even though we see the figure climb in our bank accounts, lifestyle inflation can be damaging to our long-term financial health as it limits the ability to save now and have less for retirement and achieving larger financial goals like property purchases, etc.

As you progress in your professional careers, don’t lose sight of your spending habits and try to keep up with the Joneses, especially if your friends and peers having high spending lifestyles. New cars, expensive holidays and flashy tech purchases can add up over many years and what you see those around you do, don’t feel pressured to do the same.

Despite their spending habits, it could be serviced by credit cards and loans, meaning their long-term wealth is severely impacted by their current purchases. So take the time out to regularly check how your finances are travelling, where your monthly spending is going and how you can continue to grow your wealth without blowing out your spending habits on lifestyle choices. Regular finance reviews are crucial for long term successes, especially when your income changes over time.

If you have a question or comment about building your financial wealth, leave a comment for our team below or connect with us over at our Facebook page.

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