Are you crap with money? Do you often wonder where all your money has gone? Or live in fear that your card will decline?
If you are unsure as to whether or not you belong in the ‘Crap With Money Club’, here are 10 signs you’re going to be poor when you’re old.
Can you relate to many of these points?
Unfortunately, I can. The future is not looking good.
But it’s not all bad news!
As someone who has always been terrible with money, I came to a recent realisation. If I don’t make a conscious effort to change, I’m going to be poor when I’m old. This doesn’t fit in with my goals, as I plan to spend the last years of my life on cruise ships, something I need money to do.
Here are 4 things I’ve discovered to be better with money and are trying to put into practice. If you want to avoid living on the poverty line for the rest of your life try out these tips.
Most likely you are in a bad money situation because you got yourself there. It’s not because you don’t make enough money, it’s because you’re not good with the money you make. The problem is not that you weren’t taught how to be good with money. If you weren’t taught about money, it’s easy to learn the basics, but learning will be no good to you if you don’t put them into practice.
I have a friend who has never made more than about $200 a week. We are around the same age and she has more money than I do and more investments (it’s not a tough competition, as I have none).
Essentially, I’m crap with money because I’m choosing to be. If you want to change anything in life, you have to take responsibility for the part you’ve played in getting where you are. Then you can stop playing the victim and do something about it.
Track where your money is going
For one week write down everything you spend money on. At the end of the week you will be able to see exactly where your money is going. How often have you got to the end of a week or a month and wondered, where the hell has my money gone? Happens to me all the time!
Until you know where your money is going, you’re not going to know where you can improve. It’s always best to know. Sticking your head in the sand ain’t going to help. And that’s coming from someone who is an expert at it!
You want to cut out as many decisions as possible when it comes to money. The more decisions you have to make, the harder it is to make the right ones because your will power becomes weaker with each decision.
Set up automatic payments for all your bills so you know they’re taken care of. If you want to save money, set up an automatic payment into an account that you can’t easily access.
Take away the decision-making process when it comes to paying bills and saving. This way it won’t even be an option to avoid paying your bills, or to spend your savings buying more crap you don’t need.
Before you buy something ask “Is this worth trading hours of my life for?”
Chances are you have traded hours of your life to make your money. Time is the most valuable commodity, because it’s the only thing you can’t get back. So instead of looking at how much money you have, look at how many hours of your life you traded in order to get it.
If you make $20 an hour and you want to buy a pair of shoes that cost $60, then essentially you would be trading three hours of your life for those shoes (before tax). This puts a whole new spin on things.
Look around your house or room at all the things you own and then take the time to calculate how many hours of your life you traded for all your stuff. Do you really care about a lot of the stuff you own? Are you glad you traded the hours of your life for it?
I find this to be a scary exercise, but it is a huge wake-up call. Now when I go to buy something new, I try to ask myself, is this worth trading X amount of hours of my life for? If the answer is yes, I happily buy, but a lot of the time the answer is no. This simple question has helped me avoid buying more useless crap. Try it next time you go to buy something!
So there you have it, 4 ways to stop being crap with money. A few small adjustments can make all the difference. Put these simple things into practice and they will help you avoid poverty in old age. I’m doing these things so I can hit the dance floor on a cruise ship when I’m 90. Maybe I’ll see you there!
To help put these tips into practice download the How To Stop Being Crap With Money Worksheet.