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3 Steps to Buying More Stuff You Want Right Now

3 Steps to Buying More Stuff You Want Right Now
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Most people think that the secret to solving their problems is more money—they think that if they increase their income then they’ll be able to buy more stuff and life will get easier. I’ve seen surveys where people estimate that if their income increased 10% it would make a huge difference to their standard of living, but the problem is that when they reach that amount, they still feel they need another 10% on top of that as well.

It’s a never-ending cycle of income (and spending) increase, so let’s break the cycle right now by learning 3 steps to buying more stuff you want right now.

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Step #1 – Awareness

Most of us have no idea where our money is actually going, and we have to ask ourselves whether we’re spending it on things that really matter to us. The little things we buy have an amazing way of adding up and we have to look at their long term cost to fully understand what we’re losing. For example, if you spend just $4 each weekday on snacks and coffee, you will have spent $1000 in a year. Are those snacks really giving you $1000 of value each year? Or would you rather be spending that on a vacation, your family, or a hobby you love?

Action Step #1: Take a little notebook or piece of paper with you for the next week and write down everything you spend money on. Then take these figures and use them to estimate your yearly spending. You’ll be amazed what this easy exercise will reveal.

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Step #2 – Prioritize

Now that you know where your money’s going, you need to ask yourself if you’re really happy with your spending habits. Maybe you really want your snack and coffee habit but you could do without some magazines. Maybe there are some food items you can do without, or you could cut back on your electric bill somehow. Everyone’s spending is their own personal choice and it’s completely up to you where you spend your money. That being said, I suggest that you prioritize your spending based on your own personal needs and wants—that way you’ve made a conscious choice to spend your money on the things that are most important to you.

Action Step #2: Make a list of all your current spending and put it in your own order of importance. Are there things that you’d like to buy that you feel you can’t purchase now? Add them to your list and work out how important they actually are to you in comparison with everything else.

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Step #3 – Management

Now that you’ve determined what’s really important to you it’s time to embed some habits to help you get them. The reason that it’s easy to spend $4 a day on snacks and not save for a vacation right now is simply because of our established routines. Change your habits and you’ll bring more of the things you want into your life.

Once you decide what you want to buy then you can put a strategy in place to get there. Let’s say that you want your $1000 vacation but never have that much in the bank. Well, now we set up a strategy where you put just $4 a day towards your trip. I like to withdraw my spending money in cash at the start of the week, so I know exactly how much I have to spend on food, fun, and my long-term savings goals (which goes into a clearly labeled jar or savings account). If I run out of fun money that week then I have to wait until Monday rolls around before I can spend more.

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You’ll be surprised how easy this discipline becomes with a little practice, and it’s easy to stay motivated when you have your vacation fund growing right before your eyes. If you find that you keep dipping into your savings, then put barriers in the way, such as moving them to an account that’s hard to access or giving them to a trusted friend for safe keeping.

Action Step #3: Create a money-management strategy that works for you. Make it simple and easy to follow, and use safeguards to stay honest. When temptation strikes remember the true cost of that $4 snack and decide if it’s really worth it.

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When you implement the Awareness – Prioritize – Management steps in your life you’ll find yourself buying things that you could “never afford” before, and enjoying your money a whole lot more.

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Craig Dewe

Craig founded Lifestyle Outlaws, with the belief that everyone should have the time, money and health to do what they want with life.

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Last Updated on July 20, 2021

Financial Freedom is Not a Fantasy: 9 Secrets to Get You There

Financial Freedom is Not a Fantasy: 9 Secrets to Get You There
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Have you ever considered your life now, and how it would be if you had more time to spend with your family and less worries about money?

Nowadays, financial stress is one of the most troublesome weights in life. If you’ve ever encountered financial stress, you know the difficulty of not having enough income to pay your obligations or bills.

Many people say that money is not the ultimate goal of life. While that’s true, money certainly plays a very significant role. The meaning of financial freedom changes with the different phases of our life, but ultimately, it is something that many people strive for.

In this article, we’ll explain how to capture that financial freedom you’ve been looking for. Read on to learn the secrets to financial freedom.

Break Free of Your Finances

Financial freedom is about having a constant flow of cash from your assets to cover all your regular needs.

When you are not worried about your income, or living paycheck to paycheck, you gain a great sense of freedom. It’s the freedom to be obtain and do what you truly need to make your way through everyday life.

Gaining financial freedom, though, is a process of growth, making small improvements and gaining emotional strength.

Though it seems hard to believe, it is really very simple to get financial freedom.

To do so, you simply need to make sure that your assets exceed your liabilities. In other words, you’ll need to find the sweet-spot where your residuals meet or surpass your expenses. This is something that you can achieve with the proper plan.

While not every person will accomplish financial freedom, the potential for anyone to do so is certainly there. Anyone can achieve this success, regardless of their income level.

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Outlined below are 9 secrets that will help you in your goals of achieving financial freedom.

1. Stop Unnecessary Spending

We often spend money inwardly, instead of objectively.

For example, you may spend when you’re anxious, depressed, restless, exhausted, from fear of missing out, or to please others. This is a very unhealthy way to handle your finances.

To stop this habitual spending, log down all your spending over the course of a month.

Just as some people keep a food diary, keep an expense diary. Remember not to just write down how much and what you spent the money on, also include the circumstances of why you spent the money. Was it an impulse buy at the checkout line or was it something you planned to purchase?

This increased self-awareness could enable you to avoid triggering situations in the future when you are considering an impulse buy.

2. Plan a Monthly Budget

This is a great opportunity to get serious.

Take a seat with your spouse or partner and make a monthly budget based on your income, not your expenses. You are never again going to spend more cash then you have on hand.

Overspending is the thing that led you to more financial obligations. Make sure you decide every month what is coming in and what will be going out and stick to that budget… no matter what.

3. Cut-up Credit Cards

Perhaps you are the type of person who always pays your credit card balance in full before the end of your billing cycle, and enjoys the reward points you gain. If this is the case, then you’re already way ahead of the game.

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If not, you may want to consider ridding your life of the burden that credit cards bring.

Many cards have strategies set up so that if you make a certain number of late payments, they will raise your interest rate much higher. This can really add up in the long run and you won’t be doing your financial situation any favors. If you’re prone to late payments or have a large balance due on your cards, cut them up!

Without proper self control on credit card spending and payments, you are basically throwing your money away. To ensure that you have better control over your spending, use only cash or debit for all future purchases (and don’t forget to pay at least your minimum payment on your cut-up cards each month!).

4. Increase Savings

There is no doubt that for a comfortable retirement you must accumulate satisfactory savings throughout your working life.

It’s good practice to save up to 15% of your income.

Start with your workplace 401(k), if you have one. If not, a Roth IRA (if you are eligible) or a traditional IRA (if you are not eligible for the Roth) are the next logical steps.

Increase in longevity means you might be able to look forward to 25 to 30 years in retirement, or possibly even significantly more. Investing now in good retirement plans will ensure that you have a guaranteed a stable monthly income when the time comes to stop working. [1]

5. Invest Wisely

Consider investing in funds.

Specifically, you will gain higher returns if you invest in different types of mutual funds such as Debt funds, Equity funds and Hybrid funds with a proper balance, although it absolutely relies on your personal preferences and sense of risk taking.

To get the most of these benefits, make sure you are investing in a variety of assets. Another resource of investing in mutual funds is SIP (Systematic Investment Plan) where you invest some money every month in funds. SIP works by averaging the per unit price of the stock.

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Mutual fund investors are aware of the benefits of an SIP (Systematic Investment Plan). For one, it is the most secure way to invest in equity mutual plans so that wealth is created over a long period of time. This plan also helps you to gain a better sense of financial discipline, which will come in handy in all your financial endeavors.

6. Invest in Gold

There isn’t really a better way to invest in gold than to have the physical gold itself in your possession.

You can purchase gold coins and bars from mints as well as from coin dealers and other private sellers.

Another way to invest in gold is through ETFs (Exchange Traded Funds).

These are is similar to mutual funds but they are exclusively investments of gold. ETFs are great because they offer more liquidity; the ETF owns the actual physical gold, stores it, and retains the value of the shares. These shares can then be bought and sold in the stock market, and one big benefit is that the transaction costs of gold ETFs are much lower than the that of physical gold.

With its consistently-increasing demand, investment in gold can be very wise long-term investment to make.

7. Stash Emergency Funds

Whether it’s a cash gift or a work bonus, always try to save any extra money that comes your way rather than making unneeded purchases.

If you get paid every other week, you’ll get an “extra” paycheck (three rather than the usual two) twice a year. Either save those paychecks towards your emergency funds or utilize the money to pay down other obligations, such as loans, credit cards or other debts.

Make it hard to get your cash.

Put your savings in an alternate bank, maybe an online bank that forces you to delay for several business days before transferred money hits your regular bank account.

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8. Find Fabulous Mentors

Find a mentor, such as a friend or family member, who has exceptional control over their finances and pay attention to everything they do.

If you do not have any friends or family that are enjoying financial freedom, then find a mentor online! There are numerous blogs and guru websites featuring the advice of many people who have reached financial freedom, and they exist primarily to let you in on how to achieve it for yourself.

There are also plentiful forums available that share tips and tricks on how to best achieve financial freedom. Read as much as you can and start changing your habits for the better.

9. Be Extra Patient

Patience is the key of financial success.

Being patient can be quite tough, especially when you’re struggling with your finances, but having faith is worth it. You’ll continuously be on the right track if you are taking the proper steps above.

So don’t be discouraged, even if you are only saving a few dollars a month; it all adds up. Within just a few years you’ll look back proudly at your accomplishments and be glad that you had the patience to get there.

Financial Freedom for All

Anyone can achieve financial freedom, regardless of their financial circumstance.

Use the tips provided above to get yourself on the track to financial freedom and toss your monetary concerns out the window. If you wish to achieve a life with financial freedom for yourself and your family then you must adopt a disciplined approach towards your finances.

Following the simple secrets above is a great start to making your money work for you, so you can work less and live more!

Featured photo credit: rawpixel via unsplash.com

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Reference

[1] Hartford Gold Group: IRA Retirement Accounts

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