So where to start on spring cleaning your finances?

Here are 7 steps to help spring clean your finances. Ditch any bad money habits and set up good new ones.

1. Check your cashflow
2. Plug any money leaks
3. Work out your net worth
4. Find your financial freedom figure
5. Create a budget
6. Ditch your debt 
7. Set up good money habits

Lets look in more detail at each of these

1. Check your Cashflow 

You can’t improve what you don’t measure, so the first step in a financial spring clean should be to get an accurate picture of where you currently are. If you already track this, fantastic! Have a gold star and move on to the next step. For many of us though, this first step may be tricky. 

Gather all your financial data in one place. Do you have many savings, checking, personal and joint accounts? Having lots of accounts can be useful if you are using them strategically to compartmentalise your money. Or it can be a nightmare as they can become overwhelming to keep track of.

If you have many accounts take a look at whether you actually need them all. There may also be fees associated with these accounts. You could eliminate some fees by closing some of your accounts and simplifying your banking. A way of categorising your money without having to open lots of separate accounts is to use one account that allows you to set up separate categories within it. Starling lets you do exactly this.

Keeping tabs on your expenses lets you see where the majority of your money is going.

There are apps you can use, you could use a simple spreadsheet or you can even track this on paper.

If you have a regular salary from one employer it should be easy to keep tabs on your income. However, if you are self-employed or run your own business this can become a lot more complicated. In this case, you will want to make sure that any income or expenses related to the business are coming and going from a separate account. Do not mix them in with your personal expenses. Trust me, I know. Once they become mixed in it can cause an accounting nightmare.

Before you draw your own salary from your business you’ll want to review the income and expenses for the business to make sure that the business can afford to pay you. Always leave some money in the business to cover any unexpected costs or seasonal fluctuations in income.

2. Plug any Money Leaks

You’ll be amazed at how much money is wasted each year on unused subscriptions.
This is Money says “Britons waste a collective £25billion each year by paying for subscriptions they don’t use or want”.
The biggest culprits are gym memberships (no surprise there!), mobile phone contracts and video streaming services like Netflix and Amazon Prime.

Other money leaks are magazine subscriptions to magazines you no longer read, club memberships you may not be using, and fees for services that you could get for free.

Check that any warranties and insurances are still relevant too. You may find yourself paying for a warranty on something you no longer own!

So dig through those bank statements and make sure that all the direct debits are for things you actually use and you could find yourself saving hundreds of pounds.

For more money-saving tips check out this post, 21 Things to Stop Buying to Save Money Fast.

3. Work out your net worth

Net worth is just for billionaires, right? Well, no, actually everyone has a net worth, and knowing yours is a key step on the road to financial security.

What is net worth?

Net worth is simply the sum of all that you own, minus all that you owe.
You may think that you are doing well financially if you have a good income. However, if your debts are higher in value than your assets then you are trapped in having to work to pay off your debts. So net worth is a great measure of how you are doing financially.

To calculate your net worth add up the value of all of the major assets that you own. This would include your home, your car, any investments that you hold, cash, money in retirement funds. It could even include art or jewellery if these are valuable enough to turn into cash.

To work out the value of your home, you could get an estimate from a site like Mouseprice.com, which will show you recent sales in the area. You can check the asking prices of current properties on the market (but remember that the asking price may not be the price they sell for) on property portals like Zoopla.com and Rightmove.com or check with local estate agents.

For a valuation of your car you can get an idea from Autotrader. You may need to check auction houses if you are also counting the value of investment purchases like art.

Once you’ve added up all your assets, take a look at your liabilities.

These will include your mortgage balance, any car loans, personal loans, student loans and credit cards. Add all these together for a total sum of your liabilities.

Then you can simply subtract your liabilities from your assets to get your net worth figure.

It’s totally possible to have a negative net worth. In fact, if you have bought your home fairly recently with a mortgage then it is very likely that your net worth will be negative. This may not be a bad thing as a home is going to gain in value and with it your net worth.

What you will want to be mindful of is keeping tabs on this net worth figure and make sure it is increasing, as this is the measurement of your true wealth.

It’s also possible to have a high net worth figure and still be short of cash. This may happen if you have invested in assets for the future, and your income has dropped. In this case, you’ll be looking at increasing your income to cover expenses so you don’t end up having to cash out assets to cover your living costs.

4. Identify your financial freedom figure

You may have heard of the “FIRE” movement. Fire stands for financially independent, retire early.

People on this journey have a goal of replacing their salary with income from investments so that they can retire early from their jobs. However, what you may not have considered is that we are all on the journey to financial freedom, whether we know it or not.
 
At some point in our lives, if we are lucky enough to live to a ripe old age, we will be too old to work and we will need an income to support us that doesn’t come from earnings. This may come in the form of a state pension, pension from employment, investments or government benefits. How many resources we have amassed by then will determine our quality of life.

So as you will at some point stop generating an earned income. And you should have a plan for when you’d like that to be, and how much money you need to support the lifestyle you want to live at that point.

If your only income plan is living on what the government provides, be ready for a very meagre retirement.

For good quality of life in your golden years you need to be planning ahead, and the earlier you can start the better.

Christina and Aman at Our Rich Journey go into a lot of detail on the steps they took to retire early. Check out their YouTube channel HERE.

5. Create a budget

The next step to spring clean your finances is to create a budget. A budget is simply a plan for your money.

Budgets can be super detailed, with a plan for every penny, or they can be much more general with broad categories for your spending. There is no right or wrong way, there is only what works for you. The starting point for your budget will be the income and expense spreadsheet you (hopefully!) prepared earlier. (Didn’t do that yet? This is a reminder to do it now. 🙂)

Take a look at your expenses to see if you are happy with your current spending. If so, you can enter these amounts in your budget.

Now take a look at your financial freedom figure. How much should you be saving each month to get there? Where are you going to save this money?

It could be savings accounts, investment accounts, stocks and shares, property or other assets. Regardless of how you are going to save, the first step is to have a plan.

6. Ditch your debt

Your savings plan will quickly run aground if your potential savings are disappearing towards debt.

Saving while having debts is like trying to fill a bucket with a hole in it. And in fact, if you are paying high-interest rates on your debts, it can be like pouring money directly down the drain. As unfortunately, the interest rates on debt are often a lot higher than the interest you will earn on savings.
So a key part of your financial plan needs to be getting rid of debt. 

Take a look at what you owe and your income and expenses. Do you have any money left over at the end of the month? If so, this should be going towards overpaying on your debts.

The faster you can get rid of your debts, the faster you will be able to build your net worth.

To tackle your debts strategically and pay them off in the fastest way possible check out my simple mini-course, Debt Free the Easy Way.

7. Set up good money habits

The financial spring cleaning tips here will give you a picture of your financial health and help you move towards your goals.

You won’t just want to do this once and forget about it though. You’ll want to keep checking these metrics on a regular basis.

Some, like your financial freedom figure, won’t change very often. So you may just want to put a date in your diary to review this on an annual basis, or if a big life change comes along like the birth of a child or a new relationship.

Others, like your income and expenses, can change a lot quicker. You should be checking this at least monthly to make sure that you are aware of your cashflow and on track with your goals. 

If reviewing your finances feels about as fun as a trip to the dentist, see if there are any steps you can take to make it more fun so you are more likely to do it regularly.

Here are a few tips to make a money review more fun:

⏰ Schedule it in.

It’s easy to forget to check our finances as it’s not something that is required daily. But it’s easy to put off till we need to make an application for something like a mortgage. Put a date in your diary and make sure to block off enough time to get this done.

📝 Have a specific plan.

I don’t know about you, but when I have a very general direction, like “check finances” I tend to forget exactly what needs checking and end up not doing it. So set yourself a specific task list and make sure you have all the relevant tools, like login details, to hand.

🍷 Team this with something fun or a reward afterwards. 

Think about how you can make finances more fun. Perhaps you make this your pizza night, you pour yourself a glass of wine, light some candles or put on your favourite music. If you can create pleasant associations with tracking your money you are far more likely to do it.

📈 Track your progress.

When checking your accounts you are just looking at numbers on a page, which may not feel very fun. So equate the numbers with a pleasant reward. You may have a savings goal for a holiday or luxury item. Use this opportunity to visually show how close you are getting to your goal. 

📝 I’d love to hear from you. Let me know in the comments which of these 7 tips you already do!
Found this useful? Spread the love and share! 😀

The post Spring Clean Your Finances appeared first on Go Win at Life.

Here are the main areas that can really make an impact on your budget. Which of these can you apply in your life?

1. Cars on finance

You need to get around. But how you do it will make a huge difference to your budget.

A car is a depreciating asset. That means that it loses value with time.

So any normal car is going to start losing value as soon as you drive it off the showroom forecourt.  That means that not only you paying a lot for something that’s losing value, you’re also paying for the finance charge to buy it in the first place. So over the course of your ownership, you’re going to pay a lot more than if you bought the car outright.

Now new cars are expensive so obviously, you’d need to have a lot of cash saved to buy one outright. However, you can get a very reliable car just a few years old for a fraction of the cost that a new one would cost.

How about ditching the car altogether?

If you live in a city centre with good public transport you might be able to get rid of the car altogether. Get fitter, help the environment and save a heap of money too by walking, cycling, taking public transport or getting an Uber when you need to get around.

2. Housing 

Housing is usually the biggest expense that anybody needs to pay out for so it’s really worth taking a look at to see what savings you can make.

You need to live somewhere, so this cost won’t go away, but you may be able to make huge savings by looking at ways to reduce your housing expenses.

Something you might consider is to move to a cheaper area. The neighbourhood you are in makes a huge difference in the price of property.

Another option is to downsize and move into a smaller place that will cost you less. Or go for a bigger place but share with a friend or family member to save on housing costs.

If moving isn’t an option perhaps you could take in a lodger or do holiday lets to help offset what you’re paying for housing.

Look too at the cost of rent versus homeownership. In most areas, monthly mortgage payments will be a lot lower than the cost of renting. If you can get on the property ladder you could not only lower your expenses but also benefit from the growth in value of your home over time.

For more ideas check out Your Home Could Pay for Itself and Pay an Income Too!

3. Furniture on store credit

Any furniture that you buy new on store credit is going to be costing you more than you actually need to pay for it.

The finance company is going to factor in the cost of credit into the price that they charge you, so one way or another buying furniture on credit is going to cost you more more

Even better, stop buying new furniture. Just like cars, furniture depreciates. New furniture loses value as soon as it leaves the shop.

If you were to try to resell the couch a week or two after buying it, it would be worth a fraction of what you paid for it. Save yourself a bundle by looking for items on sale.

Better still, online marketplaces have loads of excellent quality nearly new furniture for a fraction of what you’d pay in-store.

4. Anything on a credit card

When it comes to credit cards, the biggest pitfall is the interest rate. The only time you should ever use a credit card is if you have the card set up for automatic payment in full every month.

You still need to have the cash in your account to pay for that item outright. Only use a credit card if you know you are disciplined enough to check your budget and make sure the balance can be paid in full.

Many credit cards offer benefits like points, vouchers or air miles so if you can save up points for something you would buy anyway, a credit card could save you money.

I was able to pay for all my food for the month of December with points I’d saved by doing my grocery shopping on my credit card.

However beware, because as soon as you start to carry a balance on a credit card you’re going to end up paying way more for your purchases. Carrying a balance is the fastest way to really sink yourself and struggle with debt.

So unless you have the cash to pay outright never, never, never use a credit card

5. Meals out

Dave Ramsey says that the only time you should ever see the inside of a restaurant is if you work there. Well, that might be a bit drastic. However, if you’re really trying to save money then it absolutely holds true.

Why? Because you’re going to be paying not only for the food that you’re eating but also for the venue, the staff wages and service charges.

So you’re going to end up paying a lot more for your meal than if you want to eat at home.

6. Drinks out

This goes double for drinks out.

If you are going out to eat out in a restaurant and then the trick is to stop buying alcohol or soft drinks. Drinks are the restaurant item with the biggest markup.

So if you are eating out and just ask for table water with your meal and you’ll save yourself a heap off your the bill right there.

7. Food delivery

Similarly, for food delivery, you are also paying a lot extra on top of the cost of your food. You’re paying the restaurant to cook your food, you’re paying for the cost of the kitchen, the overheads, the staff and the delivery charge.

As you’re going to be eating the food at home anyway really consider if it’s worth paying for delivery service if you’re wanting to save money.

8. Processed food

While we’re on the subject of food, processed food and any meals with pre-packaged ingredients are going to cost way more than if you were to buy the ingredients and cook yourself.

Once you get into the habit of cooking you’ll find that processed foods don’t really save you that much time either. So do your health, the environment and your wallet a big favour and cook from scratch rather than buying processed food.

9. Car rental

When you’re going on holiday you need to be aware of hidden expenses. The flights and accommodation might seem affordable but then when you start to add in the extras it can really add up.

Car rental is one of the biggest extras. There can be additional fees for insurance, additional drivers, child seats, a sat nav etc. Plus the annoying waste of time waiting at the car rental desk before you can begin your holiday.

In most cities, there are local buses and taxis you can take. You can really get a feel for a place by taking local transport. Embrace life like a local and save in the process.

10. Extra luggage

Another item that can quickly increase the cost of your holiday is the luggage. Many airlines will quote you a fare without luggage. Once you start to add on suitcases you may find yourself paying double the advertised fare.

So consider what you can do to travel light. Perhaps just pack hand luggage and you’ll save money as well as saving time at the baggage collection. You’ll also reduce the risk of your luggage being lost. Without lots of luggage you could eliminate the need for a rental car too.

11. Extended warranties 

Most stores offer extended warranties now on anything that you buy, especially home appliances or electronics. Really consider whether it’s worth buying the warranty or not. In many cases the warranty is just another unnecessary expense.

Particularly with something inexpensive like a toaster or electric kettle, the warranty is a waste of money. You are likely to find it’s more cost-effective to take a chance on the item breaking rather than paying the extra for a warranty.

Essential items that are costly or hard to replace could be the exception to this rule. Items in this category can include heating boilers, fridge freezers and cookers.

In the case of these essential, big-ticket items check who provides the warranty and what their terms are. The warranty is only useful if they will actually repair or replace the item in a timely manner.

12. New computer equipment 

It can be super tempting to get the latest and greatest technology as soon as something new comes out.

But you’ll often find that you can get to a refurbished version that’s a year or two old and pay a lot less.

You’ll still get up-to-date features and well-performing product. For example, you can go to an authorised reseller and if you’re looking for an Apple product. Apple sell their own refurbished or ex-display stock.

There are also authorised resellers who will also be selling high-quality items, again for a lot less then you would pay if you’re by buying it from the store brand-new. An authorised reseller will cover the item with a warranty too.

13. New sports equipment 

Sports equipment is another category that loses value very fast.

So stop buying new sports equipment, particularly if it’s something seasonal that you’re not going to use all the time.

For example, if you’re going skiing you can pick up skis boots and poles that are still in very good condition for a lot less than new.

Another example is a bicycle. Again a bicycle doesn’t need to be brand-new to work well. Bike technology hasn’t changed so much that you would need the up-to-date this year‘s model.

So by getting one that’s a year or two old you can still get an item that works very well for a fraction of the cost of buying new.

14. New baby equipment, toys and games

I know when it’s what it’s like and have a brand-new baby and want the best. You want everything that’s new and lovely and clean.

But baby equipment, particularly things like prams and buggies cost a lot new and loose value fast.

A small child’s needs change so quickly. You may buy the perfect thing brand-new for a newborn but within three months your child’s needs will have changed and that’s not going to be the right item anymore.

You save a lot by buying secondhand. Then as your child grows you can upgrade and change to something more suitable for the next stage. Bonus if you sell on the previous item for the price you paid, or even at a profit!

15. Non-stick cookware

Stop buying non-stick cookware and you will both save money and protect your health.

You’re much better off buying something like uncoated stainless steel or cast iron. Yes you’re going to have to pay a little more attention to how are use it, but these items that can be that can last you a lifetime.

With really with good care they could even be passed on to the next generation. So there’s no point at all buying nonstick cookware that’s bad for your health and is going to get scratched and become damaged and need replacing very soon.

16. Cheap toys/clothes

Another category I’d suggest avoiding is cheap things. Now this seems counterintuitive if you’re trying to save money. But actually, by buying cheap you’re usually buying something that’s really rubbish quality and may fall apart need throwing out and replacing quite quickly.

This is a disaster both for the environment and for your wallet. If you just take a look around and look at all the items going to landfill or look at plastic pollution you can see the effect of cheap plastic items.

All of that rubbish was once money.

So it’s better to buy something that’s better quality and is going to last a long time than constantly buying and replacing cheap stuff.

17. One-off tickets to attractions

If you’re going to an attraction like a theme park or museum, look at ticket prices ahead of time. Look also at the cost of season tickets or memberships.

A lot of museums and theme parks now offer annual passes at prices that are not a lot higher than a single admission.

So you may choose which ones you go to in a given year and focus on going several times.

By getting the annual membership and going to the same place several times you’re really getting your money‘s worth. you’ll get to enjoy the attraction and pay a lot less then if you were going to buy many single visit tickets to different places.

Look for venues too that have national memberships. For example, in the UK you can become a member of the National Trust. Then you are covered for admission to all the different National Trust properties, so no matter where you are in the UK your membership will cover the admission.

Visiting a Royal Horticultural Society venue like Wisley may seem expensive for one single admission. However, if you’re going to use it many times or at different locations it can really save you a lot in the long run.

Wisley admission costs £44.70 for 2 adults and 2 children. However, you can get an annual membership for £71.25. So by visiting just twice in a year you’ll save over the individual ticket price.

18. Children’s parties

We love our children and we want the best for them but it’s really worth considering what your child needs as opposed to what are your friends and family may be expecting.

Especially for very young children a large party could be stressful and overwhelming.

Your child might be better off with a small party for just a couple of friends at home or in the garden. You can do a lot without having to pay for the cost of a children’s entertainer or venue or tickets to some kind of a theme park

19. Cheap furniture 

I have a really hard time shopping for furniture because as a former designer I pay a lot of attention to how things are made and what they’re made of.

A lot of things look great in the catalogue. They are nicely designed they look good in the photo, but when it comes down to it your find that it’s a very cheap construction that can get rickety and fall apart very quickly.

So cheap furniture, and especially cheap new furniture, can be a total waste of money because it just won’t survive being moved from place to place or having doors opened and closed. So you’re completely wasting your money by buying cheap new furniture.

You could be a lot better off if you spend a bit more on a solid wood piece of furniture that is well made.

A really a good quality piece of furniture should last hundreds of years not the five or 10 most things are designed for nowadays.

Of course the other option to save on furniture is to buy vintage or antique because you’re much light more likely to get a good quality solid piece then if you go to a store and buy a flat pack or a laminate.

20. Kitchens

Exactly the same applies to kitchens.

Even higher-end kitchens from the major retailers are mostly the same kind of construction as the cheap ones: They’re made from particleboard with a layer of laminate on top. That means any screws can work loose and if the drawers, cabinets or doors get wet then they can easily warp and swell.

So what to do if you want long-lasting kitchen? Well, again it may be worth spending more up-front to have something custom-built in solid wood or plywood.

If you are on a tight budget look at ex-display kitchens, and kitchens being taken out when refurbishing. Consider also having new doors put on your existing kitchen. With a new counter and backsplash, you can have a whole new look without having to shell out for a whole new kitchen.

21. More Stuff

The best way to save is to simply stop buying more things. We now have more possessions than at any time in history. Apparently, the average American household now contains more than 300,000 possessions.

Here Joshua Becker sums up 21 Surprising Statistics That Reveal How Much we Actually Own.

And in case anyone outside the US is feeling smug, the rest of us are heading that way too.

So the simplest way to save money is just to stop spending it. Make the most of what you already have. You’ll save money and you’ll have less clutter to deal with.

Are there any items on this list that you have already stopped buying? What about any I’ve missed? Let me know in the comments.

And if you’ve found this post useful, please remember to share 🙂

The post 21 Things to Stop Buying to Save Money Fast appeared first on Go Win at Life.

Did you know that many people who borrow money to pay for Christmas are still paying it off when summer rolls around? Crazy right!?

According to National Debt Advice over a third of us borrow money for Christmas gifts, and one person in twenty will skip paying a bill at Christmas because they can’t afford it.

This year make sure you have a debt free Christmas and join the two thirds of people who get through the Christmas season without borrowing.

So if you’re ready to start 2021 debt free, here are 12 tips to get you there:

1. Have a plan.

2020 has been a challenging year in so many ways. It’s been stressful and hard for so many of us, so Christmas should be a time to relax and not the cause of more stress.

Take this opportunity to really consider what is important to you and make that a priority for Christmas. Let go of the rest. Ramsey personality Dr John Delony shares his tips for a stress free Christmas here

There are lessons to be learned from lockdowns that can help us can save money at Christmas. For many of us shops have been closed and we’ve had limits on going out. The first tip is not to rush straight out to the shops in the run up to Christmas. All the retailers are doing everything in their power to get you to part with your money, so it’s time to be intentional and do what works for you. Remember, YOU are in control of your Christmas.

2. Start with a budget

Before you even think about any Christmas shopping check your bank accounts to see how much cash you can actually spare. Remember to allow for any bills you have coming up too.

Once you know that figure plan for how much you’ll spend on presents, how much on food and how much on decorations. Be open and honest with those on your gift list. They may actually appreciate your suggestion to spend less this year. 

Rebecca at Unexpectedly Domestic walks you through creating your Christmas Budget here and includes practical and useful tips to make your pounds or dollars go further.

3. Track your spending

Once you have your budget you’ll need to know where you are with it. Track your spending, be it on paper, in a spreadsheet or with an app. This will not only keep you on track for this year, it will also show you how much you need to plan into the budget for next year. Charissa from Change Your Finances has some great printable budget trackers. 

4. Cook your own Christmas food

Stay debt free this Christmas by planning your Christmas food in advance and cooking at home.

The supermarkets are great at selling us on the idea that we need their cakes, mince pies and trimmed turkeys. In actual fact many things sold as Christmas food is just normal food with a bit of spice, lots of packaging and a marketing campaign.

So ditch the pre-packaged stuff, and support your local greengrocer and butcher by buying fresh ingredients locally and cooking at home. Your wallet and your waistline will both thank you.

For some useful tips to have a lovely Christmas dinner on a budget check out this post from Land of Milk and Money.

5. Avoid the ads

Everywhere we turn in the run up to Christmas we are bombarded by ads trying to convince us to buy more and nicer stuff. More decorations, more gifts, more treats, more food…

If we believe the advertisers, these are all necessary to have a nice Christmas. Except they are not.

Remember that your goals and the goals of advertisers are opposite. They want you to spend your money. You want to keep more of it.

It will be good for your mental health and for your budget to disconnect as much as possible from this marketing barrage. Avoid the shopping centres if you can, limit your time on social media and turn off the TV. Be intentional and in control of the messages you receive and you’ll have a better chance for a debt free Christmas.

To get some positive messaging as an antidote to all the Christmas consumerism check out this excellent round up by Joshua Becker from Becoming Minimslist – The Helpful Guide to a Simple Christmas.

6. Get outside for free

Your best option for free activities is to get outside. It may be cold (if you live in the northern hemisphere), but the Christmas season is the perfect time to wrap up warm and get out. Not only will you burn off some Christmas calories, you can also enjoy some wonderful experiences.

Go for a walking tour of your neighbourhood to see the Christmas lights, explore the local park to see the berries on the trees or get out into nature on a frosty morning to witness the beauty of a landscape glistening with frost or snow.

Bring along a flask of mulled wine or hot chocolate to warm up afterwards. This always tastes much better when you’ve earned it. The National Trust has plenty of ideas for winter walks HERE 

7. Have a gift wish list

Being smart with your budget doesn’t mean missing out on nice things. It just means prioritising what is most important. Help your loved ones by preparing a list of what you would really like, and have them make lists too.

You’ll know your money isn’t being wasted on rubbish that will be re gifted or end up in landfill. It’s best if you agree a budget ahead of time that works for everyone. Be honest if you can’t afford to spend much. You’ll most likely be helping your friends and family to have a debt free Christmas too.

8. Learn a new skill

Use the holiday season as an opportunity to learn a new skill. You could save a lot of money by making gifts or decorations yourself.

Look for the opportunities where your base ingredients are free or low cost, yet the finished product is expensive. For example you could easily spend £50 on a lovely Christmas wreath for your door. Or you could watch some wreath making videos on youtube and then make a similar wreath from natural materials for free.  

Other examples of things you can make are baked goods or handmade creams.

Beware of crafts where the raw materials typically cost more than the finished product. Knitting falls into this category. Nice yarn can cost more than a finished jumper, so whilst it is a great, relaxing hobby, it  isn’t great for saving money.

Check out this tutorial for making your own stunning, luxurious Christmas Wreath

9. Block access to debt

Put the plastic on ice. Freeze your credit cards. Yes, literally.

If you are not going to cut them up entirely at least make them difficult to use. Take a tub of water (or better still, sticky syrup) drop your credit cards in and pack them in the freezer.

Then delete your payment details from any retailers where you’ve saved card details. The harder you make it for yourself to spend, the less chance you have to make impulse purchases on credit.

That’s the simplest way to have a debt free Christmas. Only buy what you can pay for in cash.

Above all don’t be tempted by payday lenders and promises of low or zero rate loans. You can find yourself with huge interest rates later, which will make your purchase WAY more expensive. Some lending can even cost more than the item itself!

Save yourself a major headache down the line. Only buy what you can afford NOW.

10. Share family gifts

If you have a large, extended family rather than buying lots of individual gifts think about something the whole family could share. Sharing a game, a day out or a food hamper could be a lot more fun than getting a pair of socks or tie.

11. Cultivate your mindset

The biggest predictor of how wealthy you will be is not your starting point in life, but the thoughts in your head.

If you truly want to be free of debt and move towards financial freedom you need to start with your mindset.

This doesn’t mean thinking and dreaming about money. This means educating yourself on how to earn, invest, save and grow your money.

The best gift you could give yourself for Christmas could be financial education. With the right knowledge you can be sure that all your Christmases will be debt free.

Money Nuggets have 10 great books to get you started. Many of these have helped me on my journey to financial freedom, and a few others have just been added to my reading list. Check out these Money Mindset books

12. Make a savings plan for next Christmas

The good thing about holidays and birthdays is that they are predictable as they occur at the same time each year. This gives you a whole 12 months to plan ahead.

Get 2021 off to a great start with the right money habits. Start by reading my post with the 7 best money saving blogs to follow (in addition to this one of course!)

Start a separate savings account for gifts and holidays that you put some money into every month. That way when Christmas rolls around you are ready and you are not hit with a big, sudden expense.

I hope that you feel encouraged to take control of your finances! Remember to subscribe to my newsletter as part of your wealth building strategy 😀

Pin me for later:

The post How to Have a Debt Free Christmas appeared first on Go Win at Life.

Have you ever made a New Year’s resolution, set about it with enthusiasm, only for it to be a distant memory by February? Yeah, me too.

What about launching into a new diet or exercise programme that quickly gets abandoned? Or a new cleaning routine, savings plan or morning routine?

But what if there was a method that made it easy to stick to new habits? Well, actually there is, and that is habit stacking.

So what is habit stacking and how can it help you reach your goals?

The key to habit stacking is to take a behaviour you already do, and add on (stack) a behaviour you want to be doing.

This is explained in a lot of detail by James Clear in his brilliant book “Atomic Habits”. Well worth a read if you want to transform your own habits.

I wanted to make writing a daily habit. I struggled during the day as there were so many other things demanding my attention. By the evening I found my motivation was low and it was way easier to collapse on the couch and scroll social media. But I found a way of getting this done through habit stacking.

I have a young daughter and I always read her a story before bed. Her bedroom is next to my home office. Now, instead of heading downstairs after putting her to bed I step into my office.

Once I am at my desk most of the barriers to writing have been removed. The simple stack of: “After I put my daughter to bed I… step into my office” makes the goal of writing much easier to achieve.

The key to making habit stacking work is not to try to take on too much at once. That will be setting yourself up for failure.

Why? Because large changes in behaviour require a lot of motivation and willpower. This is fine when we are full of enthusiasm at the start of a new year, new diet, new job or whatever. The problem comes that when the enthusiasm wears off and the changes seem overwhelming, too hard or just not exciting enough to stick to any more.

Willpower doesn’t work as a habit building tool.

By using the actions you already do to trigger a behaviour you want to introduce, you have a far greater chance of making it happen. Then once the new habit becomes routine, you can build another one onto the sequence, and so on.

You can also help yourself succeed in your new habit by setting up your environment to make the habit easier.

Say you want to drink more water. You can put a glass of water by your bed at night so its the first thing you see when you turn off your alarm in the morning.

Then the habit stack becomes: When I turn off the alarm I… drink water. 
You can leave your water bottle by the sink at night. So the next habit stack becomes: When I wash up after breakfast I… fill my water bottle.

You’ll also find that good habits can automatically lead to adding on other healthy habits. 
Like a habit stack of: “After I get up I… make my bed” can give you a feeling of accomplishment at the start of the day. If you start your day on positive note you may feel more positive and be more productive.

So how can habit stacking help you achieve your goals?

First of all think of a goal you’d like to achieve. Then think about the actions that will help you get there.

For example if your goal is to have a clean house the actions you need to take are to work a cleaning routine into your day.

So your habit stack might look something like this:

When I get up in the morning (existing behaviour) I… make my bed (desired habit)

Once this becomes routine you could add another habit to the stack:

When I get up in the morning I make my bed and… put away clean laundry

It’s best not to make the habit stack too long. A longer chain can become overwhelming. However you can then stack habits to meet the same goal onto different actions. So continuing with the clean house goal your next habit stack might look like this:

After I take a shower I… spray and wipe the shower. Once this becomes routine you might build up to:

After I take a shower I spray and wipe the shower and gather up dirty laundry. Then:

After I take a shower I spray and wipe the shower, gather up dirty laundry and put on a wash.

I’m sure you get the picture. 

Say your goal is to save more money.

Habits that support this goal are setting a budget, planning your spending and making food at home instead of getting take aways.

So here are some habit stacks that could support the goal of saving money:

• When I want to buy something I… put it on a list.
• When I open my computer I… check my budgeting app.
• Before I do my food shop I… plan my meals for the week.
• After I eat breakfast I… wash up. After I wash up I… put dinner in the slow cooker.

For more money saving tips you could use in a habit stack check out this post.

Beware too of habit stacks that work against you.

It’s very easy to subconsciously pick up bad habit stacks. Do you ever find yourself mindlessly scrolling Social Media, eating unhealthy snacks or binge watching Netflix? Chances are that you’ve picked up a negative habit stack.

I drink a lot of tea. I like to have a biscuit with my tea. So drinking tea has become a negative habit stack trigger. I have subconsciously formed habit stack which has me eating lots of biscuits.

I can turn this habit stack around by substituting tea for something else. I don’t associate biscuits with drinking water. So by switching some of the tea I drink during the day for water I can reduce the amount of biscuits I eat.

Are there any negative habit stacks you have picked up? See if you can switch your trigger to eliminate the negative habit.

Ready to reach your goals with habit stacking? Grab my free workbook now and transform your habits!

The post How To Reach Your Goals Faster With Habit Stacking appeared first on Go Win at Life.

It’s a lot easier to save money than it is to increase the amount coming in. But how can you actually do that (without just living on rice and beans – yuck!)

I’ve rounded up 7 of the best personal finance blogs with useful tips you can actually follow to save money and still live a good life.

1. Making Sense of Cents

Michelle at Making Sense of Cents  has so many good financial tips that you may not need to go anywhere else. Oh, and she has also achieved a level of financial freedom that allows her and her husband to live on a luxury yacht and cruise the world.

But even if you get seasick at the very thought, I suggest putting a good chunk of time aside to wade through her posts on making and saving money.

If you are interested in blogging Michelle is a great resource too, especially as she shares her income reports. Just make sure you are sitting down the you read them as they are pretty spectacular!

2. Finnsavvy Panda

Ling at Finsavvy Panda has a great approach. Her philosophy is that you don’t need to cut back on the things you enjoy to save money. Instead you become more intentional with your spending.

Here is a super straight talking post that teaches you where you can limit your spending to cut the unnecessary things out of your life. You can even make money doing it! Check out her post Things to Stop Buying to Save Money.

What I like best about Ling’s blog is that she speaks from personal experience. All the strategies she talks about she has implemented herself. She has also made a good income and substantial savings in the process.

3. Living Well Spending Less

Living Well Spending Less  is another blog which has grown way beyond it’s roots into a multi media mini empire. Routh Soukup started the blog focussing on lifestyle and money saving tips.

Now it has grown to encompass so much more that you have to dig around to find the money saving element. However it is still packed with lots of practical advise from Ruth herself, and from her growing team of writers. Here is a shortcut to the money saving bits: Smart Money

4. Fun Cheap or Free

Jordan Page makes money fun! You can follow her blog at Fun Cheap or Free

This mum of a gazillion children still manages to look fabulous and hold it all together, all the while teaching us to live a fabulous lifestyle on very little.

If reading loads of text is not your thing then this one is for you. Jordan has Youtube videos linked to her posts. She tells it like it is, and shows you exactly what she means.

This blog has grown Jordan a huge following, and not without good reason. Start here to find out how and when you should do a spending freeze. 

5. The Busy Budgeter

The Busy Budgeter is full of straightforward, practical tips, like this article on how to set up your budget to make it easy to stick to. 

As well as budgeting and saving money, Rosemarie has plenty of tips to organise your home and get your meals under control.

On top of her own content, Rosemarie shares guest posts to bring you a range of tips. Between Rosemarie and her guests you’ll find something for you whatever your situation.

6. Dave Ramsey

So this one isn’t strictly a blog, as it has grown way beyond that to become a global brand, but you could do a lot worse than follow Dave Ramsey.

Dave Ramsey is one of those people that you either love or you hate. I must confess to starting in the hate camp at first impressions. There is a loud, know it all American brashness about the way he tackles his talk show that can grate on you if you are not used to it.

But I gave him a chance, and actually found a lot of hugely useful content. I’ll admit that I know his Youtube channel better than the blog. However the messaging is the same throughout – Get out of debt, stay out of debt, earn more and save.

You’ll have to dig through a lot of promotional content on his site to actually find the blog, so here is the short cut. Most of the articles are U.S. centric, but the general principles can be applied no matter where you live.

Want a list of practical tips for saving money from one of the titans of budgeting? Here you go

7. Money Saving Expert

No money saving blog list would be complete without Money Saving Expert. 

Though it is now way more than just a blog (Martin started this now huge site as just a weekly email to friends back in 2003) this is still an excellent site for saving money.

Now a dedicated team of researchers and writers brings you top tips on every money saving topic you could imagine.

The big advantage with this site, as opposed to many others, is that it does not allow sponsored content, affiliate or advertising. So the recommendations are truly independent. 

To quote Martin: “The average person in the UK can give themselves the equivalent of a 25% pay rise by being an active, savvy consumer and shifting to the very best deals. This site’s here to show you how.”

https://www.moneysavingexpert.com/site/about-the-site/

What’s not to like about a 25% pay rise? Sign me up!

If the main site is a little too impersonal for you, Martin also has his own blog. Here in addition to money saving tips you can get a weekly dose of his views on many different subjects. Of course these are all viewed through the lens of a savvy money saver. 

On the downside, a lot of the content on both the blog and the main site is review based. This means you find out which products are best, but it doesn’t help with financial strategy.

As it’s a consumer website you might find out which credit card had the best rates for you. However you may not be told that you would be better off without one at all.

I hope these blogs inspire and help you to save more money so you can live a rich life.

Are there any favourites I’ve missed? Let me know in the comments below!

The post 7 Best Money Saving Blogs to Follow appeared first on Go Win at Life.