If you’re broke at the end of each week, struggle to pay bills on time or haven’t started saving for retirement, you have probably accepted this as being normal. But it doesn’t need to be. If you wish to get ahead financially, it is vital to break the bad habit of living from one payday to the next.
Most people associate the habit with people on low incomes or students. But living on Struggle Street is a problem that can affect anyone, including the well off.
Getting ahead has less to do with how much you earn and more to do with achieving the right balance between enjoying today and planning for the future. Money is an emotional and complex topic so at enableMe we assess people’s financial fitness. Once, we have established that, we start creating money habits to build wealth – no matter what your income is.
The first step is to set goals. If you don’t do this, then how do you know what you are trying to achieve financially? It is important to be specific and make your goals measurable so you can see the results. Ensure that the goals are attainable, realistic and within sensible time frames. Once you have decided on your goals and their timeframes, then you can make informed choices about how to achieve them.
Second, track your spending. This is where you need to be honest. How much do you own and owe. You need to know exactly how much you earn and what you spend your money on. Establish what costs you can cut back on and see if you have money left over at the end of each month. If you don’t, then you need to find more – sell assets or get a second job. Surplus cash can then be put towards your finance goals.
Finally, to get ahead financially you need to change your thinking from hoping to doing. The way to do this is to have a good plan in place, and one that doesn’t make you feel deprived. This gets you moving in the right direction, which in turn, builds momentum and achieves results. The most effective motivator is results. If you are accountable to someone who is qualified and impartial you will reach your goals faster. If you would like to meet with an enableMe personal financial trainer, and achieve your financial goals faster, phone 0800 897 898 or visit www.enableme.co.nz to book a consultation.
EnableMe is one of the country’s fastest growing financial advisory firms, with a client base of more than 4,000 people. There are eight locally owned franchises nationwide in Auckland, Bay of Plenty, Wellington and Christchurch.
The company was founded in 2007 by Hannah McQueen. She is a Chartered Accountant with degrees in commerce and taxation law. Hannah is one of New Zealand's leading experts in personal finance and is the 'go-to' person for many TV and radio shows, newspapers and magazines.
She is also the author of two books: The Perfect Balance - How to get ahead financially and still have a life. Her second book, Kill Your Mortgage and Sort your Retirement, was published in 2015.