🧠How to Master Your Money to Live the Life of Your Dreams

We all dream of being financially free. To never have the worry of money constantly weighing on our minds. Since money is our biggest source of stress (before work and health!) it’s no wonder we’d want to do everything we possibly can to get to a place where money is the exact of opposite of that. Where it’s something that makes us feel relaxed, happy and feee.

Financial freedom looks different for everyone. For some, it’s being their own boss. For others it’s having enough cash to never need to work again. But at its core, it’s being able to do what you want when you want with whom you want. Not being answerable to anyone but yourself. To be able to do things because you want to not because you have to. Read here why financial freedom is not about earning more.

Get comfy with money

But before you even think about making money you need to get comfortable with money. This sounds pretty obvious but you’ll be surprised at how many people are actually afraid of the one million pound mark. It scares them.

Maybe they’re afraid of being in control of that much money or maybe they’re frightened of the seemingly unattainable which it isn’t by the way since more than 90% of millionaires are in fact self-made! And in the US, 1,700 people are becoming millionaires every day! It really is possible. You’ve just gotta believe you can and you will. Read here how you can put your confidence back into your finances.

Photo by juan mendez on Pexels.com

The thing is, if you struggle to manage £100 then you won’t be able to manage £1,000 and you certainly won’t be able to look after a million bucks. But we gotta start somewhere so trying to manage £100 is the best way for us (and our future oldie selves) and seems like a good place to start. They key is so start small and grow from there.

Where it all begins

To truly master money you need to go back to your past where your impression of money was first born. Since our approach and attitude towards money is massively impacted by our parents and our overall upbringing it’s worthwhile taking a trip down memory lane.

For some, this may bring up uncomfortable memories like when you overheard your parents worrying how they’d be able to pay the gas bill. Or, you could have had the opposite experience. Maybe your parents were the sort who would constantly be splashing out as though money grew on trees and now you’ve grown up doing the same.

Whatever your background, it is never too late (or too early) to get your relationship with money on the right foot.

Photo by maitree rimthong on Pexels.com

The notion of worth

Since we value that which we work for the harder we work for our money the more we’ll value it. This is natural. Imagine working at a diner or your local coffee shop for a couple hours each day as a college student taking home a few tenners each day. I guarantee you you would not be so quick to spend that cash.

Remember: easy come easy go. So make sure that your money is the exact opposite. Make it hard to come by and even harder to let go of. Invest easily; spend wisely. Your future self is grinning right now. Psst: read here why boring ‘n slow should be your investment motto!

Money ain’t no taboo

I was lucky enough to grow up in a household where money was openly discussed. Money was not avoided like some dirty word, only to be used by grown-ups. And trust me, even those folk have trouble talking about it!

During family dinners, we would discuss things from mortgages to investing and everything in between. I began to see money as a tool not something inherently good or bad. The more you learn how to use that tool, the better off you’ll be.

Yet we’re all so afraid of talking about money but as Hermione Granger taught us all those years ago: “Fear of the name only increases fear of the thing itself”.

I encourage you to take the steps to start talking about money. Start by talking to your parents. Ask them what their best and worst financial decisions were.

You’ll learn a great deal and this will set the scene for more conversations to follow. Or you can bring up something money-related at the dinner table. It could be something you’re struggling with or a money move you’re most proud of. Talking is the first step to doing. 

Whether or not your parents were the money-talking kind, you can still teach your kids. And learn for yourself. There are loads of books and free resources out there that do a cracking job of breaking down key concepts for anyone to understand. I’ve found that pocket money is a great way to start! It gives kids some sense of responsibility and teaches them to delay short-term pleasures and trade them for (better) long-term ones.

Photo by Roberto Nickson on Pexels.com

How to avoid this costly trap

I came across this quote a while back by Warren Buffett and it’s stuck with me ever since: “If you don’t find ways to make money while you sleep, you’ll be working till you die”. Buffett sure doesn’t mince his words.

This may sound harsh but it’s absolutely true. With inflation and taxes both on the rise, this nasty mix means that you won’t be left with much if you don’t find ways to multiply your earnings. 

The trick is to make your money work for you; not the other way round. I see so many people who are slaves to their money. They go to work day in day out because they need to pay the bills and when they earn more (thanks to bonuses and promotions) they often find themselves sitting on an even greater pile of bills.

Don’t follow the crowd

How does this happen? Lifestyle inflation. The more they earn, the more they spend. This is a dangerous inflation in disguise. Their lifestyle (and its whopping cost) keeps on rising with their earnings. But in order to be financially free you must keep your outgoings as low as possible even – and most importantly – with your earnings rising.

See, an increase in salary sounds great. You think it’ll leave you with a bucketload of extra cash to splash but if most of it goes toward an even bigger home in a fancier neighbourhood with a heftier mortgage then you aren’t really free. You’re a slave to those bills.

I’ll leave you with this: the amount of zeros in your bank account does not define you as a person. Nor does your past.

We all have the ability to choose a financial path that is tailored to us.

Just because we were taught something or because our circle of friends do something, does not mean that it’s right for us. 

Walk down your own path to financial freedom.

Disclaimer: This blog is not investment or financial advice. It is my opinion only. This blog is not a personal recommendation to buy/sell any security, or to adopt any such investment strategy. Always do your own research before you commit to any investment.