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- Herausgeber: John Wiley & Sons
- Kategorie: Ratgeber
- Sprache: Englisch
The ultimate handbook for achieving your goals and transforming your life In Smart Moves: Simple Ways to Take Control of Your Life, you'll find the knowledge, tools and confidence to go after what you want and live the life you've always dreamed of. This practical playbook is packed full of more than 100 actionable tips for levelling up in your finances, your career, your wellbeing and your relationships. Inside, you'll find everything you need to empower and motivate you to take charge--starting today! Smart Moves breaks down a variety of complex topics into easy-to-understand steps, showing you how to conquer the challenges you encounter every day, in all aspects of your life. With tried-and-trusted strategies from Téa Angelos, founder of the wildly popular online community Smart Women Society, you'll learn how to: * Make your money work for you: spend wisely, learn how to budget, pay off debts, and invest for your future * Take your career to the next stage: write a resume that will land you your dream job, ace your interviews, advocate for yourself at work and negotiate a promotion * Beat burnout and rediscover your motivation: develop simple but effective practices for self-care, time management, productivity and wellbeing * Form and foster relationships that support and nurture you: learn to love yourself, set healthy boundaries, strengthen your friendships and build a healthy, happy love life Smart Moves is the ultimate guide for any ambitious woman seeking to make smarter decisions and lead a happy, fulfilling and successful life.
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Seitenzahl: 335
Veröffentlichungsjahr: 2023
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Table of Contents
COVER
TITLE PAGE
COPYRIGHT
DEDICATION
ABOUT THE AUTHOR
INTRODUCTION
HOW TO USE THIS BOOK
MONEY
1 Laying the foundations
YOUR MONEY MINDSET
FINANCIAL GOALS
FIVE FINANCIAL NUMBERS YOU NEED TO KNOW
SIGNS YOU ARE FINANCIALLY CONFIDENT
2 Managing money
MONEY HABITS TO FOLLOW
‘HAVING’ A BUDGET VS ‘BEING’ ON A BUDGET
HOW TO MAKE A BUDGET
BANK ACCOUNTS
QUESTIONS TO ASK BEFORE TAKING ON DEBT
PAYING OFF DEBT
PAYDAY CHECKLIST
MONEY CONVERSATION STARTERS
MANAGING MONEY AS A COUPLE
MOVING OUT AND NAVIGATING MONEY WITH ROOMMATES
3 Saving money
SAVINGS STRATEGIES
SAVING FOR A HOUSE
SAVING MONEY ON YOUR BILLS
SAVING MONEY ON GROCERIES
SAVING MONEY ON TRAVEL
4 Spending money
HOW TO SHOP SMARTER
STOP IMPULSE SHOPPING
NAVIGATING MONEY WITH FRIENDS
5 Growing your money
TYPES OF INCOME
WHY YOU SHOULD INVEST
BEFORE YOU START INVESTING
TYPES OF INVESTMENTS
CAREER
6 Getting a job
COMPONENTS OF A WINNING RESUMÉ
COVER LETTERS
ACING THE JOB INTERVIEW
QUESTIONS TO ASK AT THE END OF A JOB INTERVIEW
AFTER THE INTERVIEW
NEGOTIATING YOUR STARTING SALARY
HOW TO NEGOTIATE YOUR SALARY
RESPONDING TO A JOB OFFER
RESIGNING ON GOOD TERMS
7 Confidence at work
POWERFUL WORK AFFIRMATIONS
OVERCOMING MEETING ANXIETY
WHEN TO SAY ‘NO’ AT WORK
HOW TO SAY ‘NO’ AT WORK
BOUNCING BACK AFTER MAKING A MISTAKE AT WORK
STOP OVER-APOLOGISING AT WORK
DEALING WITH IMPOSTER SYNDROME
ADVOCATING FOR YOURSELF AT WORK
ACCEPTING A COMPLIMENT AT WORK
TACKLING SCARY CONVERSATIONS AT WORK
8 Your career pathway
FIGURING OUT YOUR CAREER PATHWAY
SIGNS YOU MAY BE STUCK IN YOUR CURRENT JOB
WHAT TO DO IF YOU FEEL STUCK IN YOUR JOB
HOW TO CHANGE CAREER PATHS
IMPORTANT SKILLS FOR CAREER SUCCESS
NETWORKING TIPS
TRACKING YOUR ACCOMPLISHMENTS
PREPARING FOR A PERFORMANCE REVIEW
LANDING A PROMOTION OR PAY RISE
9 Side hustles
BENEFITS OF A SIDE HUSTLE
STARTING A SIDE HUSTLE
CHOOSING A SIDE HUSTLE
SIDE HUSTLE IDEAS
MAKE A BUSINESS PLAN
MANAGE YOUR TIME
MARKETING YOUR SIDE HUSTLE
SIDE-HUSTLE FINANCES
SIDE-HUSTLE CHALLENGES
WELLBEING
10 Self-care
OUR MENTAL WELLBEING BATTERY
BENEFITS OF SELF-CARE
SELF-CARE MINDSET SHIFTS
TYPES OF SELF-CARE
BOOSTING YOUR DAILY HAPPINESS
STARTING YOUR MORNING
HOW TO SLEEP BETTER
11 Burnout
SIGNS OF BURNOUT
EFFECTS OF BURNOUT
MANAGING BURNOUT
HOW TO LEAVE WORK STRESS AT WORK
TYPES OF REST
12 Motivation
HOW TO SET GOALS THAT YOU'LL ACTUALLY STICK TO
WHAT TO DO IF YOU FEEL STUCK IN YOUR LIFE
FIXED VS GROWTH MINDSET
DEVELOPING A GROWTH MINDSET
VISUALISING YOUR DREAM LIFE
LIMITING VS EMPOWERING BELIEFS
HOW TO CHALLENGE NEGATIVE THOUGHTS
WHY YOU SHOULD PUSH YOURSELF OUT OF YOUR COMFORT ZONE
HOW TO PUSH YOURSELF OUT OF YOUR COMFORT ZONE
OVERCOMING YOUR FEAR OF FAILURE
HOW TO STOP DOUBTING YOURSELF
FOCUS ON WHAT YOU CAN CONTROL
MAKE FASTER DECISIONS
HOW TO STOP OVERTHINKING
HOW TO MOTIVATE YOURSELF
WHAT TO DO IF YOU FEEL LIKE GIVING UP
13 Productivity
PLANNING YOUR WEEK
REMINDERS FOR WHEN YOU FEEL OVERWHELMED
UNPRODUCTIVE WORK HABITS
TURNING AROUND AN UNPRODUCTIVE DAY
MAKE AN END-OF-WEEK CHECKLIST
PRODUCTIVITY TECHNIQUES TO TRY
EISENHOWER MATRIX
BREAKING DOWN BIG TASKS
POMODORO TECHNIQUE
TIME-BLOCKING
MUSIC
PARETO PRINCIPLE
YOUR FAVOURITE PRODUCTIVITY STRATEGIES
LOVE
14 Self-love
THINGS THAT DO NOT DEFINE YOU
HOW TO STOP FEELING GUILTY
HOW TO STOP CARING ABOUT WHAT OTHER PEOPLE THINK
HOW TO BOOST YOUR SELF-CONFIDENCE
HOW TO CELEBRATE YOURSELF
THINGS YOU DON'T NEED TO JUSTIFY
TIMELINES DON'T EXIST
THINGS YOU WILL NEVER REGRET
15 Setting boundaries
WHY BOUNDARIES ARE IMPORTANT
COMMON MYTHS ABOUT BOUNDARIES
TYPES OF BOUNDARIES
HOW TO BUILD HEALTHY BOUNDARIES
BOUNDARIES WITH FRIENDS
HOW TO SET BOUNDARIES AT WORK
WHAT TO DO IF SOMEONE CROSSES YOUR BOUNDARY
HOW TO REACT IF YOU CROSS SOMEONE'S BOUNDARY
SET BOUNDARIES WITH SOCIAL MEDIA
HOW TO HAVE A DIGITAL DETOX
16 Friendships
FRIENDSHIP: GREEN FLAGS VS RED FLAGS
HOW TO STRENGTHEN YOUR FRIENDSHIPS
MEANINGFUL COMPLIMENTS TO GIVE TO SOMEONE
17 Relationships
RELATIONSHIP: GREEN FLAGS VS RED FLAGS
LOVE SOUNDS LIKE …
HOW TO SHOW LOVE TO YOUR PARTNER
QUESTIONS TO DEEPEN YOUR CONNECTION WITH YOUR PARTNER
HEALTHY RELATIONSHIP TECHNIQUES
HOW TO APOLOGISE
WHAT TO SAY WHEN SOMEONE IS UPSET
OVERCOMING A BREAK-UP
BREAK-UP REMINDERS
HOW TO BE HAPPY BEING SINGLE
FIRST DATE CONVERSATION STARTERS
FINAL THOUGHTS
END USER LICENSE AGREEMENT
Guide
Cover
Title Page
Copyright
Dedication
About the Author
Introduction
How to Use This Book
Table of Contents
Begin Reading
Final Thoughts
End User License Agreement
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First published in 2023 by John Wiley & Sons Australia, Ltd
Level 4, 600 Bourke St, Melbourne, Victoria 3000, Australia
© TA Group Pty Ltd 2023
The moral rights of the author have been asserted
ISBN: 978-1-394-16047-1
All rights reserved. Except as permitted under the Australian Copyright Act 1968 (for example, a fair dealing for the purposes of study, research, criticism or review), no part of this book may be reproduced, stored in a retrieval system, communicated or transmitted in any form or by any means without prior written permission. All inquiries should be made to the publisher at the address above.
Cover design and stripe concept by Alissa DinalloInternal design and artwork (except where noted) by Chris Shorten/Wiley
Page 5, 179, 205, 207, 224, 227, 283: Brain image: © NotionPic/Shutterstock. Page 41, 261, 297: Person standing; page 233: Person sitting: © tiny_selena/Shutterstock. Page 63: Friends: © robuart/Shutterstock. Page 110: Crowded office meeting; page 292: One-on-one office meeting: © GoodStudio/Shutterstock. Page 122: Woman in dress; page 126: Woman standing: © GoodStudio/Shutterstock. Page 123: Woman with phone; page 132: Woman with purse; page 305: Woman standing: © Nadya_Art/Shutterstock. Page 41: People at table; page 90: Woman walking; page 316: couple walking: © robuart/Shutterstock. Page 179: Woman meditating: © VectorMine/Shutterstock. Page 179, 283: Woman symbol: © MarkZilla/Shutterstock. Page 213: Woman, casual; page 303: Friends: © Bukavik/Shutterstock. Page 275: Woman in wheelchair: © Flash Vector/Shutterstock.
DisclaimerThe material in this publication is of the nature of general comment only, and does not represent professional advice. It is not intended to provide specific guidance for particular circumstances and it should not be relied on as the basis for any decision to take action or not take action on any matter which it covers. Readers should obtain professional advice where appropriate, before making any such decision. To the maximum extent permitted by law, the author and publisher disclaim all responsibility and liability to any person, arising directly or indirectly from any person taking or not taking action based on the information in this publication.
I would like to pay my respects to the Traditional Custodians of the land on which I work and live, the Turrbal and Jagera people, and recognise their continuing connection to land, waters and community.
I pay my respects to them and their cultures; and to their Elders past, present and emerging.
I would also like to extend that respect to any Aboriginal and/or Torres Strait Islander people who may read this book.
To the Smart Women Society community — thank you for your never-ending support and for making this book possible.
ABOUT THE AUTHOR
Téa Angelos is the founder and CEO of Smart Women Society (SWS), one of the largest and fastest-growing online platforms helping a thriving community of hundreds of thousands of women get smarter with their money, careers, wellbeing and relationships. SWS is on a mission to empower women around the world with the knowledge, tools and confidence they need to take control of their lives and achieve their goals.
Ever since she was in high school, Téa has been teaching her peers how to create budgets and write their resumés. With degrees in both law and commerce, she has previously worked as a business consultant to large global companies and also owns a digital marketing business.
Téa is a passionate advocate for women and is highly sought after as an expert speaker and commentator on chart-topping podcasts and in national media publications such as Mamamia, Yahoo Finance, body + soul, 9Honey, Channel 7, Daily Mail and House of Wellness. Her ability to simplify complex topics into engaging, actionable and easy-to-understand steps has led her to help the lives of thousands globally.
INTRODUCTION
No-one really prepares you for adult life.
Trying to excel in your career, manage your money, maintain your friendships, look after your physical and mental health, reply to all your emails and texts, stay hydrated, avoid burnout, invest for your future, set healthy boundaries, work on your goals, be happy and get enough sleep.
If you feel exhausted after reading the above paragraph, I'm with you.
It can feel like a never-ending juggling act.
Ever since I was in school, I have always been obsessed with breaking things down into simpler steps.
As a student and then as a university tutor, I would always draw simple graphics and flowcharts breaking down the topics we learned in class and summarising the key points we had to know for exams. I created copies of these breakdowns and shared them with my friends and students as study notes.
In university, I would help my friends write their resumés and cover letters to land internships and graduate jobs.
At work, I would always preach the importance of financial independence and show my colleagues of all ages the steps to create a budget in the break room at lunchtime.
Nothing beat the feeling of seeing the smile on someone's face when a topic finally ‘clicked’ for them.
My approach has always been the same: practical, actionable and easy to understand. I break down complex topics into visual summaries and simple steps, so they are easily digestible and quick to learn and implement.
My goal when I started Smart Women Society was to implement this on a larger scale, breaking down a variety of topics across all areas of our lives, and help people just like you feel confident and empowered to achieve their goals.
This book is filled with more than 130 tips and lessons I've learned along the way through my experiences, research and working with industry-leading experts.
I wrote this book to help you take control of all areas of your life. To show you how much potential and power you have. To make you feel empowered to level up in your finances, your career, your relationships and your overall wellbeing.
Before you get stuck into this book, I have one request: take action.
Read the tips and implement them in your life.
It may feel scary, but the hardest step is always the first one.
Don't let yourself in a year's time wish you had started a year ago.
Start today.
HOW TO USE THIS BOOK
This book is broken down into four sections:
Money
Career
Wellbeing
Love.
Within each section is a variety of chapters covering different topics and issues that many of us face every day. Each topic is short and filled with simple, actionable and easy-to-understand tips that you can implement straight away.
Consider this book as your go-to guide. It's your companion and starting point as you navigate various situations and different seasons in your life. Make it your own — write all over it, highlight parts, fold down the corners and do research to learn more about the topics that interest you.
You can read this book from start to finish or you can start at whichever chapter is most relevant or interesting to you. One month you may want to try some new productivity techniques, and another month, you may be more focused on boosting your self-confidence. Re-visit the chapters as often as you need.
I would love to hear about your progress: send us a DM on our Instagram (@smartwomensociety) or email me at [email protected].
You've got this!
MONEY
In this section:
1 Laying the foundations
2 Managing money
3 Saving money
4 Spending money
5 Growing your money
I've made a lot of silly money mistakes in my time. Some of my ‘highlights’ (in no particular order) include:
I once went to a new hair salon to get my hair cut and coloured. I didn't ask how much it cost before the hairdresser started, and when I got to the counter, it was $650. I was absolutely mortified but had no other option than to just pay it.
I didn't realise that I had to actually cancel subscriptions after the free trial period and ended up wasting hundreds of dollars on random apps and streaming services I never used.
As soon as I received an offer for my graduate role, I bought a very expensive handbag so I could ‘look the part’ on my first day. I wasn't starting the job for another six months and I had already spent a big portion of my first pay cheque.
I was running late to an appointment and couldn’t find a park, so I stopped in a loading zone outside. I came out 15 minutes later to a very hefty fine.
I always thought I needed to ‘treat myself’ after a long week at work and would constantly buy random beauty items or new clothes to boost my mood. The man at the post office remembered my name from how often I was going in, and would snidely ask me: ‘So what did you get this week?’
We're all human. We all make mistakes that we may not be particularly proud of. However, what's important is that we forgive ourselves for these past mistakes and learn how we can improve in the future. For many people, learning how to manage your money was never really taught when they were growing up. The beliefs and the behaviours that we have towards money usually stem from how we saw our parents and other people interact with money and what we saw in movies or on TV. Maybe you've always told yourself that money is ‘too hard'. Or maybe you've convinced yourself that it's ‘too late' to change your relationship with money. But you are far more capable than you think and there is no better time than today to take the first step to transform not only your money, but your life.
Remember, personal finance is just that — personal. We all have our own unique upbringings, privileges and backgrounds, and negatively comparing yourself to someone else's situation is a waste of your time. The only person you should be comparing yourself to is the person you were yesterday. If you focus on becoming just 1 per cent better every day, you will see huge progress over time.
You might be wondering: what does 1 per cent better even look like? One per cent better can include a variety of things such as working on your money mindset, forgiving yourself for past money mistakes, setting financial goals, creating a budget, paying off debt, being financially prepared for an emergency, knowing where your money goes every month, exploring ways to grow and invest your money, and learning how to shop smarter and avoid impulse shopping.
It may feel overwhelming, confusing or daunting, but remember that you do not have to change everything all at once. Pick one or a few things to focus on at a time and build systems and habits so it becomes a natural part of your life. When you feel like you have a good grasp of the topics, choose some more areas to work on, and watch your confidence with money grow. What matters is that you have decided to take control, transform your relationship with money and work towards becoming financially free.
Being financially free and independent is so important. The reason for this is that when you are financially independent, it allows you to make your own decisions without the influence or control of others. It means you can say ‘no' and walk away from things that do not serve you. It means that you no longer stress about money or have money hold you back when making a decision. It means you have full control of your time and can live life on your own terms.
And probably more importantly, financial freedom gives you choice. It gives you the choice to quit a job that you feel trapped in and take your time finding a better one, end a toxic relationship or be there for your loved ones when needed. This is why it's so important to build positive money habits and have a plan for your money, so that you are never in a situation where you feel stuck, trapped or held back.
1Laying the foundations
YOUR MONEY MINDSET
Our money mindset and attitudes towards money ultimately shape how we handle our finances. The money mindset we have is usually shaped by how we grew up around money, our experience with it growing up and witnessing how our parents and other people interacted with money. For example, if you come from a household where your dad handled all the finances and your mum didn't make any of those decisions, then this is likely to lead to you having similar beliefs as an adult. Or if money was always scarce and a source of stress in your household, this will impact how you handle money as an adult. Improving our money mindset comes from rewiring our limiting beliefs, educating ourselves about key financial concepts and strategies, and having open discussions about our financial goals and journeys.
LIMITING BELIEFS
A lot of people tend to have a range of limiting beliefs when it comes to money — that it's too hard or too complicated and they'll just never be good with it. These are the self-doubting thoughts that we tell ourselves that set limits on what we can achieve before we even start. The problem with holding these limiting beliefs is that it places a mental block on your ability to grow and develop a positive relationship with your money. Changing your self-talk around money is a major step in reframing your limiting beliefs into empowering beliefs.
Instead of: I am terrible with money.
Say: I am working on improving my finances every day.
Instead of: I'm such a failure.
Say: I am proud of myself for taking steps to improve my financial situation.
Instead of: I can't afford it.
Say: How can I afford this?
Instead of: Saving money is hard and complex.
Say: I break down my savings goals and automate them.
Instead of: Everyone else has so much more than me.
Say: I am on my financial journey.
Instead of: Why didn't I start earlier?
Say: I can't change the past, and there is no better time to start than today.
INSTANT VS DELAYED GRATIFICATION
Many of us are prone to wanting instant gratification: constantly buying new clothes to be ‘trendy', wanting the latest thing to ‘keep up' or seeking immediate results or pleasure. Even though choosing something now may feel good in the moment, taking a longer-term view and developing self-discipline can result in bigger and better rewards in the future. Delayed gratification is our ability to resist these temptations of instant pleasure, allowing us to stay focused on our long-term goals. It involves budgeting and spending mindfully, as well as developing discipline and patience to avoid impulse spending and decision making. Think about instant vs delayed gratification when you are developing your own financial goals. Consider whether your goals are focused on short-term gains or designed to look forward to a bigger picture.
LIFESTYLE CREEP VS ELEVATION
One of the biggest money mindset mistakes you can make is lifestyle creep. When you receive a pay rise at work or you increase your income with a new job or side hustle, it can be tempting to spend that extra money on a nicer car, more expensive restaurants or fancier clothes. Before you know it, these former luxuries become ‘necessary' spending and you find yourself running out of money every month. Avoiding lifestyle creep involves having clear financial goals that you are working towards, tracking your spending and automating transfers to your savings and investments so they occur before any non-essential spending happens. When you receive an increase to your income, allocate a small portion to treat yourself and put the rest towards your financial goals.
In contrast to lifestyle creep, lifestyle elevation is the way we act following an increase in income that benefits our lives. Rather than seeing this as a negative, lifestyle elevation focuses on the positive benefit that can come from spending more on your lifestyle. This includes investing in personal self-care, spending more on higher quality items that will last longer, improving your standard of living, having the ability to travel and paying for convenience that frees up your time. Lifestyle elevation will align with your personal financial goals and values, whereas lifestyle creep will hold you back from achieving them.
IMPOSTER SYNDROME
We can often feel a sense of imposter syndrome when it comes to our finances. This includes feelings that we are not smart enough or good enough despite our experience, qualifications and achievements. Imposter syndrome can affect our finances in a variety of ways. It can cause us to not apply for a well-paid job that we are qualified for, not negotiate our salaries when starting a new role, not start investing or not pursue a promotion or business idea due to a fear of failure. Tracking your accomplishments and progress towards your goals is a great way to remind yourself of your abilities and how capable you are.
COMMUNITY STORYUnderstanding my money story
When I turned 14, I got my first job at a fast-food chain. I enjoyed working as much as having the independence to spend money as I please. From age 14 to 19 I worked … a lot. I remember receiving an almost $10 000 AUD EOFY tax return at around 18 and I blew it all in just three months. Fast forward to age 20, I was living by myself, enjoying the life of an independent 20 year old … except just living pay cheque to pay cheque.
My relationship with money finally started to shift when I got sick and had to stop working for a month. I was in a very bad mental space and all of my life problems hit me at once. It was the reset I needed for my life. Firstly, I realised that I wasn't actually living the life I wanted. Questioning who I really wanted to be, and the future I wanted to have, made me change my lifestyle.
As my everyday decisions changed, eventually I had to tackle money. I had been seeing an amazing kinesiologist for almost a year, and with just one session on my relationship with money, I had an awakening. She showed me that my relationship with money was deeply rooted in my self-worth, which was, for years, scarred by a broken relationship with my father. During my second therapy session, we unlocked that I subconsciously did not want to save up because I believed that if I saved my money, I wouldn't have a life. I saw my mom living frugally and not looking after herself just so that my brother and I could enjoy our lives.
After that session, I bought my first book about money and went on an Instagram and YouTube spree to find the best financial advisers. I am so grateful to have come across Smart Women Society, as their content is so easy to understand and is relatable in so many ways.
I'm only in the primary stages of building a healthy relationship with money and I love it already. I recently started a fortnightly, zero-based budget, setting up a savings account with interest, and enjoying seeing my savings grow. I've also reflected on my spending habits and a lifestyle I am happy with without all the frivolous stuff involved.
Thanks again SWS for all the work that you do.
Frances
FINANCIAL GOALS
If you find yourself feeling unmotivated or stuck when it comes to budgeting or saving money, you may not be setting effective money goals. Setting goals gives you a sense of direction and purpose for all the effort that you are putting into improving your finances. Without meaningful financial goals, we can lose interest or feel indifferent, which can result in bad money habits. Put yourself in the best position to take control of your money by defining your financial values and setting smart goals that align with these values.
DEFINE YOUR FINANCIAL VALUES
Your financial values are the foundation on which the rest of your money journey is built. They are the guiding light that keep you on track with your goals and define the reasons why you set your money goals in the first place. Your financial values are the beliefs you hold on what is important. For example, you might value travelling and new experiences, or you might value stability and buying a home is your top priority.
The values you uphold will influence how you spend your money and decide on your long-term financial priorities. Think about what you value spending your money on. What brings you joy and fulfilment? What brings you comfort and security? Your financial values are not permanent, and they will change over time as your priorities and circumstances change.
CREATE YOUR FINANCIAL GOALS
Once you have defined your financial values, the next step is setting short-, medium- and long-term goals that align with these values. Think of what you want to achieve in the next year, next few years and well into the future and write out your goals using the SMART goals framework.
Specific:
Be really specific about exactly what you want to achieve. For example, your goal should be ‘I want to save $5000 by the end of the year' as opposed to ‘I want to save more money this year'.
Measurable:
Make sure your goals are measurable so you can track progress and success. For example, ‘I want to pay off my debt in six months' or ‘I want to save $3000 for my holiday in December'.
Attainable:
Dream big, but make sure your goals are still attainable and realistic. For example, it would be very difficult to save $50 000 a year if you earn $55 000. Your goals should be motivating but not unachievable.
Relevant:
Is this goal really what you want to achieve? How does this goal tie into your values and priorities in life? Having goals that are important to you will help you stay motivated to achieve them.
Time bound:
Set yourself a time period to achieve the goal. It's important to keep yourself accountable by setting a realistic deadline to achieve your goal.
BREAK DOWN YOUR GOALS AND TRACK YOUR PROGRESS
Once you have set your goals, break them down into smaller steps and milestones. If you have a yearly goal, think about what milestone you want to reach every quarter. If you have a monthly goal, think about what you want to achieve each week. Mark these milestones in your calendar and schedule check-ins to evaluate your progress.
STAY COMMITTED AND REWARD YOURSELF ALONG THE WAY
Achieving your money goals is never a linear path. Embrace the ups and downs of your journey and remember that small progress is still progress. What's important is that you stay consistent, resilient and remember the ‘why’ behind wanting to achieve your goal.
FIVE FINANCIAL NUMBERS YOU NEED TO KNOW
If you want to take control of your finances, you need to know exactly where you stand at the current point in time and where you want to be. There are five financial numbers that you need to know: your income, spending, debt, savings/investments/asset equity and your net worth. Determining your current financial position will help you identify the areas where you are doing well, as well as the areas that need improvement. Tracking with these numbers over time will also show you the progress that you are making to help keep you motivated.
YOUR INCOME
Your income is any money that you receive on a regular basis. This will include your wages or salary, net income earned through a business, dividends or profit from your investments, interest from your bank, government payments, selling something you create or own, and any other notable positive money gain you receive. Relying on one source of income can be risky, especially if you are unexpectedly made redundant or have to quit your job. Instead, protect yourself by building multiple streams of income so you are less reliant on your wage/salary.
What you need to know:
What are your income streams?
How much money do you make on average from each of your income streams?
YOUR SPENDING
Your spending each month can be divided into essential and non-essential. Essential expenses are the things you need to spend money on each month to live, such as housing, bills, groceries and transport. Conversely, non-essential spending covers things like new clothes, eating out at restaurants and subscription services.
If you are unsure of your spending habits, print off your last two to three months of bank statements, grab two highlighters and go through each transaction line by line. Use one colour to highlight essential spending and the other colour for non-essential, discretionary spending.
What you need to know:
How much do you spend each month?
How much are your essential and non-essential expenses?
For your non-essential spending, are there any areas you can reduce or cut down on?
YOUR DEBT
Your debt is the amount of money that you have borrowed from another person or party, which you owe back to them.
What you need to know:
How much money do you owe and to whom?
What are the terms of the debt, including the value, interest, payment due dates and any other obligations associated with the debt?
YOUR SAVINGS, INVESTMENTS AND ASSETS
Savings and investments include the money that you put into your bank account for short-term savings, longer-term savings, emergency funds, sinking funds or into investment accounts.
Your assets are the things that you own that have positive economic value. Your asset equity refers to the value of what you own in your assets. In other words, the total value of the asset minus any outstanding loan/debt you may have on that asset.
What you need to know:
How much do you have in your savings accounts?
How much do you have in your investment accounts?
How much equity do you have in your assets?
YOUR NET WORTH
Your personal net worth is the combination of what you own (assets) and what you owe (liabilities). You should use your net worth to track your progress from year to year, and to hopefully see it improve and grow over time.
To calculate your net worth, calculate the total value of your assets. This includes the value of your home, value of vehicles, cash in bank accounts, value of investment accounts, value of bonds and any other notable asset that holds value. Then, calculate the total value of your liabilities. This includes the outstanding value of your mortgage, investment loans, credit card debt, car loan, personal loans and student loans. The difference between the two is your net worth.
What you need to know:
What is the total value of your assets?
What is the total value of your liabilities?
What is your net worth (the difference between the total value of your assets and liabilities)?
SIGNS YOU ARE FINANCIALLY CONFIDENT
There is no better feeling than being confident with and in control of your money. Financial confidence is about so much more than material things like buying flashy cars, eating at expensive restaurants or splurging on designer clothes and bags. It's about being in control of your money and not letting it control you. It's about not feeling stressed about how you will pay for things. It's about not having money hold you back from living your best life. We develop this confidence over time by adjusting our money mindset and implementing a money management system that helps us achieve our financial goals. As you start to take control of and change your relationship with your finances, you will begin to view money as a tool instead of a stressor.
2Managing money
MONEY HABITS TO FOLLOW
Most good money habits do not come naturally — they are developed over time with consistent practice and a shift in mindset. Being good with your money is more than setting a new year's resolution and thinking that is all that’s required to achieve your financial goals. Like any other positive habit, taking control of your finances is developed through repetition, diligence and focus. Here is a simple summary of actions that you can do daily, weekly, monthly and yearly to get better with your money.
‘HAVING’ A BUDGET VS ‘BEING’ ON A BUDGET
The term ‘budget’ has always seemed to carry a negative stigma with it. It is often misconstrued as something that is restricting, holds us back and means we can never have fun again. The truth is that a budget is simply a plan for your money. It helps you figure out where you are spending your money each month, making sure you have enough for all your bills while simultaneously planning ahead for your future and all the fun things you want to do.
There is also a huge difference between having a budget and being on a budget. This lies in whether you are in control of your budget or if you are letting your budget control you. Being on a budget feels very restrictive and revolves around always finding the cheapest option, cutting things out and spending the least amount of money possible. This is why many people ‘give up’ on a budget because they create one that is far too confining and rigid.
Having a budget, on the other hand, is all about creating a plan for your money that feels like a natural part of your life. It means working towards your financial goals and spending on things that matter most to you, so that money feels like a tool to help you live your best life and not something that holds you back.
Everyone's budget will be unique and there is no ‘one-size-fits-all’ rule for how you should allocate or spend your money. What matters is that you are taking care of your essential needs, aligning your spending with your personal values, and striking a balance between having fun in the present and preparing for your financial future.
