Managing Your Finances Has to start somewhere…
This year I’m really focusing on getting my finances back into tip-top shape. I will be sharing my full journey with you soon, but for now, I wanted to talk about a fantastic book: You’re Not Broke You’re Pre-Rich.
I purchased this a while back and had a flick through. Recently, I devoured the book and I’m so excited to put reading into practice. Emilie Bellet is full of great tips and advice. Her website Vestpod is also full of knowledge that you can put action today.
You’re Not Broke You’re Pre-Rich covers everything from credit cards, debt management and buying a house. Whilst some chapters don’t apply to me just yet, it’s great to be aware of them now so you’re prepared when you’re ready.
Here are some great tidbits that I took from the book that I would recommend to anyone who wants to make a start on their financial future…
My Top Takes From You’re Not Broke You’re Pre-Rich
- Break the Money Taboo. I think there are a lot of us out there that find it difficult to speak about money. One of the first things in the book is about me more open about breaking the taboo. My husband and I have very honest conversations about money on a daily/ weekly basis. I also speak to my friend about it a lot and I’m very comfortable to say ‘nope, can’t do that this week. I can’t afford it’. Talking about money is not tacky, the more we speak about it the more we can be honest and open about our situations.
- Build Up Your Emergency Reserve. Everyone (even people with debt) should have an emergency reserve. This is a small pot of money that you have, you know, in case of emergencies. Most people will say to have at least three months of your salary saved away. However, if you are starting from zero, that can be daunting. You’re Not Broke You’re Pre-Rich advises start with having £100.00 and once you’re in a comfortable place, build your way up. Set up SMART goals to help you achieve this.
- Plan for a 100-Year Life. The average life expectancy continues to rise (yay for us). To ensure you can live that fabulous life of yours in the future, why not plan that you are going to hit that milestone birthday and get everything into place. Can you put a little bit extra into your pension now (especially if your work matches it)? Do you have enough in savings to support some great holidays you can take when you retire? While you’re young, think of these things now.
- Get Yourself a Budget. I love my budget spreadsheet (yup, you read that right). The book recommends the 50/30/20 budget spilt: 50% towards bills and essential expenses, 30% towards debts and saving goals and 20% to treat yourself. Find a great budget plan that works for you and crush your financial goals.
- Saving Your Money the Right Way. There are many different ways to save your money, depending on your short, medium and long term goals. Depending on the access you need to the money, you could go for an easy access saving account or you could invest it for the long term and gain a nice bonus at the end. This book goes into depth about the different ways you can save your money.