Ironically, I advocate strongly against the saving of cash. Inflation is a motherfucker and will eat it alive!
Fortunately for you, these 10 personal finance tips will enable you to not only build wealth, but avoid inflation and maintain that wealth long-term!
So, let’s get get into it!
1. Learn to LOVE budgeting 😍
Have I lost you already? No. Good. Most people HATE budgeting and think budgets are boring AF.
But then again, those people are probably broke.
I can say this, because when I thought budgeting was boring, I was sure as hell broke!
The fact is, without knowing how much you spend each month, how do you know how much you can save, and therefore, invest?
You don’t. Simple as that.
You need to make budgeting your new best friend. Fortunately, theres a bunch of apps which make this VERY easy these days.
I personally use Yolt. I link all my accounts to it and it automatically tracks and categorises all my spending for my pay period.
I then take this info, and dump it straight into my Spreadsheet, which also tracks income, assets, liabilities, savings and net worth. But you don’t need to worry about all of those details at firs. Start with simply tracking your expenses with one of these great, free apps.
The simple act of tracking it and seeing your outgoings in easy to understand, visual charts will allow you to see all your spending habits. The good, the bad and the very, very ugly.
But this is GOOD. Because how can you fix a bad habit if you don’t know you have one?
You can download my FREE Income and Expenses tracker by clicking this image:
2. When Payday Arrives, Pay Yourself First!
If you’re in the habit of splurging your free cash on consumer goods you don’t really need every pay day, you’ll never have enough money to live that dream life of freedom.
And, if you’re happy living pay cheque to pay cheque like this, you can go ahead and stop reading this article now. This information is not for you, and neither is any potential for accruing wealth.
When you get paid, save a portion of that pay immediately. Preferably into long-term investments.
Start with an amount that’s manageable and not too daunting, like 5%. Try and increase this every year by just 2-3%.
Why? Well, say you earn £3,000/month and save 5% (£150). Here’s what you’d have after 35 years assuming an 8% return:
£323K. Not bad!
But let’s say you increase your yearly contributions by 5% as your salary increases throughout your career:
An extra £255K but simply topping up your contributions regularly.
And when your raises or bonuses come around, try to save as much as 100% of these if circumstances allow.
Imagine the end number if you manage that!
If you invest this long-term into index funds, ETF’s and/or stocks, your wealth will grow VERY quickly.
3. STAY OUT OF DEBT
Consumer debt is bad.
Business debt, when used to leverage opportunity can be good…
But that’s not what we’re talking about here. I’m talking about personal, consumer debt: credit cards, store cards, store finance, etc.
If you’re carrying any kind of consumer debt, get it gone!
It mounts up very quickly. And although it may provide access to that immediate gratification we all seek. It diminishes our ability to invest, save for emergencies, and ultimately, puts any chance of achieving financial freedom on hold!
That’s not what you want!
Rules for debt:
If you can’t afford it, you can’t have it!
If you want it really badly, work harder for it 🤷♂️
If you’re already carrying some debt, here’s what you need to do…
Go through all your accounts and sum up all your debts! Every penny.
Because you’ll never be able to tackle it if you don’t know what you’re dealing with!
Once you’ve done this, like magic, you’ll find yourself frightfully aware of how much money you’re throwing out the window each month in payments & interest.
But, what’s more…
Seeing this debt summed up in one place will have a psychological impact, changing your mindset entirely.
From that moment on, you’ll be determined to make that number go DOWN. Not up!
And that’s where change starts to happen.
If you’d like a made-for-you spreadsheet ready-to-go, the guide below includes the very spreadsheet I use to track all my finances. Click the image to take a look.
4. Credit Cards Are Only Good For One Thing!
Credit cards should only ever be used when you’re able to clear them completely each month.
For example, use them for day-to-day expenses such as groceries, fuel and bills, and then clear the balance when you get paid!
The beauty of this is that you can accrue all of the rewards points and none of the bad debt!
Rewards credit cards come in many forms. You can get credit cards which reward you with travel reward points, aviod points, supermarket loyalty points which can be exchanged for cash value on your groceries, etc.
Find the one that benefits you the most and use it wisely!
5. Live Below Your Means!
Basically, spend less than you make each month.
Doesn’t take a genius to understand this. But I’m always amazed by these people that run out of money days, or even weeks before payday because they’ve spent more money than they make! 🤦♂️
Again, by simply tracking what you bring in and spend each month in my free expenses tracker at the top of this article, you’ll be able to plan your months and watch your spending closer than ever before!
I’m gonna leave the link here for you again 👇
6. Save an Emergency Fund!
This is critical!
Having 3-6 months salary saved in case of an emergency is the ultimate sleep-aid!
It takes the pressure off should you lose your job or need to stop working for any reason.
Sounds like a lot to save, I know. But just start putting away what you can today and you’ll be so glad that you did!
7. Set Ambitious Goals!
This is more important than you might think.
If you start saving or investing without know what you’re doing it for, you’ll never stick to it!
This is why I suggest having a target in mind:
🔸Enough invested to stop working
🔸Save £10K, £100K
🔸Save 7 figures!
Whatever it is, just write it down. and start working towards it.
You won’t believe the power of simply writing down a goal and taking daily steps towards achieving it.
My target is to have enough invested to stop working.
There’s a tab in the spreadsheet that comes with my guide (see number 3 ☝) that works this out for you based on your expenses.
It’s pretty neat!
Honestly, if you want any hope of achieving your long-term financial goals, investing is genuinely the most powerful tool there is and your absolute best bet!
🔸Growth/Value stocks (if you know what you’re doing)
Find an investment vehicle and strategy that fits your goals, timeline and risk appetite and stick to it!
You can download the free mini-guide I wrote, The 10 Commandments of Investing here:
My approach is to invest in individual stocks, with a couple of ETF’s and dividend stocks thrown in where it makes sense.
My strategy has earned me an 86.7% return over the last 13 months+
Beating the overall market performance by quite some margin!
You can learn my research strategy for stocks by clicking on the image below:
Or, join my Private Stock Group and you’ll get a copy of this guide for free!
9. Track your net worth!
Your net worth = Your Assets – Your Liabilities
Knowing your net worth is alike to seeing the health status of your finances in the moment in time.
By not only knowing, but tracking it monthly, you’ll have the benefit of knowing what impact your lifestyle choices are having on your financial health.
This can stop you getting into future difficulty.
It will also help you to identify the best ways of growing your net worth. So, you can work out how to reach financial freedom even sooner! Maybe even retire early 🤷♂️
If you don’t already have a way of calculating & tracking your net worth, guess what?
Yes! You can do that in the spreadsheet that comes with my ebook too.
I really have thought of everything!
10. Earn More Money!
But the easiest way to build your wealth is to earn more money!
I currently have 5 sources of income:
1️⃣ My 9-5
2️⃣ Online courses
3️⃣ Private Membership Group
4️⃣ Amazon FBA
5️⃣ Affiliate Marketing
The two highest earners, outside of my 9-5 are Amazon FBA and Affiliate Marketing.
If you’d like to start making money on Amazon, the best place to start is with Products for Profit – a membership group which tells you what items to buy and sell on Amazon, Ebay, etc.
This is the fastest, easiest money I’ve ever made.
Check out my 1 month breakdown detailing how I made £722 profit in my first month (a 1000% ROI 👀)
You can sign up here:
With affiliate marketing, I literally get paid for tweeting. Sounds insane, but you just need:
✅A twitter account
✅Products to promote
If you download either of my guides, join my private stock group, or PFP, you can affiliate for all of these and get 50% for each sale you make.
This guide teaches you how to succeed with affiliate marketing, from start to finish. And by clicking on the image below, you’ll get access to a 25% discount exclusive to my readers.
If you’d like to create a brand on twitter, grow an account to several thousand followers and make £100’s every month by simply tweeting, like I have…
You should join the $mart Engagement Community. You’ll get:
✅Access to 2 engagement groups
✅$mart Twitter Growth Guide (value $45) FREE
✅A channel for every niche & side-hustle
✅All led by large accounts who are winning!
✅Chat 1:1 with people making big money online!
So, that’s how I’m building long-term wealth, and making a bunch of money on the side of my 9-5.
My only advice would be to take this one step at a time. Sort out your current finances before trying to make money elsewhere, otherwise you’ll get overwhelmed and won’t stick to either long-term.
I hope you found this article useful!
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Some of my articles may contain affiliate links to products I have personally used and benefited from. If you make a purchase, I will receive a small commission at no extra cost to you.