I love making money, I love saving my hard earned money but most of all I love spending my money. My life doesn’t revolve around designer handbags, shoes and materialistic things but it sure does help me sleep peacefully at night knowing I’m on top of my financial targets for my business and life. Plus, why should it be kept for a rainy day or see the rewards of my long days if I have nothing to show for it!
So, how do I save for designer handbags or a new laptop I bought myself last week? Here’s a 5 step financial plan to get clear about money and on target for your saving goal!
Set a goal
From paying off debt, saving up to start your own business or getting a dream pair of shoes, you need to know what your end goal is and how much it’s going to cost. Once you’ve got that clarified, it’s a case of putting tactics in place to see out your strategy. Don’t be shy, write it in your diary or put a picture of a designer handbag or seeing a clear credit card statement as a wall paper on your phone! I had a clear vision of my new Apple MacBook right from day one at the start of this year and worked towards it.
Create a budget
List all your fixed incomings and outgoings down on paper or in an excel spread sheet so you know what your financial situation is. We changed our family budget to accommodate the boys earlier on this year and then start working in cash each week for incidentals. When you know exactly what you’re working with that designer handbag or that debt free bank statement is far easier to get to and manage.
Stick to the plan
Be strong about cutting back on outgoings you don’t need. My father always instilled into us that a purchase was either a want or a need. So do you want this designer handbag or do you need this handbag? It’s definitely a want so prioritize your needs – things like your rent, car, loans, living expenses on top and then allocate finds to save to the want item. That way you’re not going to be starving but you will have a strategy to get there.
Get some support
Get your tribe involved! Tell your friends and family you’ve got a goal in mind and you need their support. That designer handbag won’t buy itself if you keep on spending up a storm over dinners and other expenses. I’m a strong advocate on working smarter not harder so use entertainer vouchers, look up special discount nights or entertain at home if you want to work within your budget!
Do your homework
I knew that if I bought my laptop at a certain store I could get a discount on my extras I had to purchase like a hard drive and SD card, so I strategically shopped there. There might be a designer discount or preloved store where you can get designer handbags at a fraction of the price of a store. Look around and you might be pleasantly surprised by your options! I offer a clean 20% discount on all my courses with the code cheatsheet20 – remember work smarter, not harder!