Worrying about money is something that affects us all at some point in our life. In fact it also affects Billions of other people too from all around the world. You will never be the only person worrying about money even though it may feel that way. Money, or lack of it has such a big impact on our day to day lives. So much so that worrying about money is one of the leading causes of stress in adults around the world. We need money everyday to buy food, clothes, to keep us warm, pay for somewhere to live and the list goes on. So making sure there is enough money to pay for everything, especially at the moment where the price of everything is raising, can be really stressful. So when we are faced with a situation where there is not enough money that is where even more stress and worry really kicks in. I hope this blog provides help on How to improve your money situation using ‘WEALTH’
Money worries can put a huge strain on family and relationships and cause problems. Tackling your problems head on is the only way to navigate through the stormy waters you are in. It may feel like there is no way out but there is always a way through challenging times. Keep talking. It is vital that you communicate with your partner (if you have one) as you are always stronger together. It is important that you are on the same team and are aware of the whole situation. Financial freedom just takes time, patience and perseverance.
Making a few small changes can really help your money situation and prevent you worrying so much. According to Get Rich Slowly, breaking down potential purchases according to the following acronym can help cut down on frivolous spending.
W E A L T H
So using the wealth acronym could be really valuable and help you make better decisions over purchases, and save you money. This will really help you long term with your money situation. There are always going to be times where we need to buy things. Thats fine its just all about budgeting and evaluating what you are buying and if you really need it and being in control of your spending.
The first letter in the Wealth acronym is W
This stands for want or need. Do you really want or need the item the you are thinking of buying? Think carefully about the purchase you are going to make before you make it and be sure you are buying it for the right reason. If you could wait a week or month longer then that might allow you more time to save more money.
W can also stand for Write it down. If you have money worries or concerns writing them down can really help. These could be immediate money worries about your lack or struggles with money or they could be long term money worries. These could include not having enough money for emergencies or for your retirement.
The second letter in the Wealth acronym is E
E stands for evaluate. You need to have a good understanding of your monthly income and expenses and evaluate these to see if you can make and adjustments. If you have credit cards or loans you need to prioritise trying to clear the debt to free up more money whilst avoiding credit in the future. Focus only on buying essential items and put buying any non essential items on hold until your financial situation improves.
The third letter in the Wealth acronym is A
A stands for add-ons. If you are looking to purchase an item, don’t rush into buying the add-on items such as warranty or insurance. Especially if signing up to the add-on is going to eat into your budget. Also be weary of upselling.
Another A could be automate. Automating your finances will prevent payments being missed. Paying all your bills on time will also mean that you will avoid any late payment or missed payment fees being taken from your account. Automation will also help you to know how much money you will need each month to cover the essential bills. This will also help you to budget and see what you have left after all your bills have been paid. Automation also gives you one less thing to worry about, knowing all your bills are covered and scheduled to be paid means you can focus more time on saving or earning more money.
The fourth letter in the Wealth acronym is L
L stands for lifestyle. Are you trying to live a lifestyle that you can not afford? Trying to live up to others or to what you see in magazines and on the internet is not the way to go. You have to live within your means. The lavish lifestyle you are craving will come once you have sorted out your financial situation. Decreased your out goings and increased your income and life will start to improve. Be careful not to fall into the lifestyle inflation trap. This is where you find you are earning more money, so you spend more money. Buying items just because you think thats what you need to do as others are buying them. It’s like the saying keeping up with the Jones’. You don’t need to do it and you shouldn’t. Everyone has a different financial situation and you should always live within your means.
L also stands for learn. Try and learn a bit about better money management and budgeting. The more you learn about improving your money situation and budgeting the easier money management will be. You never know if you learn enough you may be able to create an ebook to sell and make extra money out of your experience and knowledge
The fifth letter in the Wealth acronym is T
T stands for track and time. Tracking your financial progress is crucial to your situation and getting you into a more financially free and worry free position. Track all you income and expenses on a regular basis so you can see how your financial situation is progressing. If you have a budget plan or budget tracker be sure that you are using them weekly. This will make sure you are on track and heading in the right direction.
Time is also crucial as you want to improve your financial situation as soon as possible. Also give your self time to evaluate what you are buying. Don’t make any rush decisions and take your time to evaluate if you actually need what you are planning on buying. If you can wait a bit longer until you are more financially stable then that would be a sensible option.
The last letter in the Wealth acronym is H
H stands for help. If you are really struggling with debt and money problems you need to seek help. This could be in the form of a family member, partner or even someone that has gone through a similar situation before. Getting help is nothing to be ashamed of especially if it is going to ease the worrying. Financial advisors could also be handy to speak to, most of these offer free advice and could provide some valuable suggestions to improve your financial situation.
H can also stand for happiness. Happiness with definitely come when you take control and improve your financial situation. It will allow you to enjoy your time with friends or family and not be worrying all the time. Little steps now can really lead to financial freedom and happiness.
Thanks for reading and I hope you find some of the tips helpful. If you enjoyed this blog. please check out me other blogs.
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