Many of us dream about financial freedom. What we would do if we won the lottery. What we could spend the money on if our budget was limitless. Feeling this is completely normal, and simply a part of human nature. This post will talk about what it means to be money motivated. Along with how financial stress occurs. However, more importantly, what we can do to improve your money situation for the better.
What Does It Mean To Be Money Motivated?
Money motivation has a different meaning for everyone. Nonetheless, there is nothing wrong with wanting more money in your pocket. For reference, I will be referring to being money motivated as an enabler to openly talk about finances, find weak spots, and where to improve them. There always needs to be a conversation about money, because quite honestly, it eases nerves to talk about it.
As Maslow would state: “Motivation is the encouragement to do something”. Using this argument, you would need to understand your personal relationship with money. Is it an enabler to do things, a necessity, or something you simply want, including vanity purposes? As money is relative, you need to know where you sit on the scale. How much intervention you would need to be financially happy. Are you really mad at your financial situation, or does it only need a few mild changes? From knowing this, you will reap the greatest benefit when you succeed.
Types of Financial Struggles
Debt
This can be the easiest way of money getting on top of someone, debt can be completely overwhelming. Time after time I’ve looked at my balance and seen that I’m in debt. However, we never really stop to think of the cause of this. Maybe your expenses outweigh your income or a freak incident proved costly. Life just gets in the way sometimes. To rely on debt as an indicator of you as a person is upsetting. Most people have debt, and the fact it’s never discussed shows how much of a taboo subject it is. Expect that you are not alone in this and that it is perfectly normal to have debt.
Income
After the pandemic, most people’s income has been impacted. Whether you lost your job, been furloughed, had to change to working from home. Although you may spend less on travel, working from home increases electricity and gas bills. Changes like this affect the amount of money in your pocket. If you have children, it could’ve been costly to keep them occupied all day, while teaching them at home.
It is expected for your income to have taken a hit, which can make it difficult to stay money motivated. Quite frankly, most of us thought about staying healthy as a priority. You should note this when worrying about your income. Because, for the first time in a while, the world had its mind focused on something else.
When worrying about financial stress, it may be worth reassessing your household income. Is it enough to live on? Do I need more money, or would I like more money? These simple assessment questions allow you to question your current situation. Whatever you do, however, never overwork yourself. It’ll never work in your favour, and will only cause you more stress.
Outgoings
Income and outgoings will always go hand in hand. The more people in your household, the further the money will be stretched. This can put more pressure on income streams, and try to ensure they don’t fall through. Outgoings will always change over time, and there will be situations where you notice more money going towards something than you need. Have an open conversation with those around you and try to set up a contingency plan. What can we live without? What expenses are higher than they should be? I ask this because you never know what is around the corner.
Sadly, if you lose an income, things are going to have to be renegotiated. It is, therefore, easier to have the conversation beforehand. Consider getting cheaper phone contracts, reducing the food shop by buying non branded items, and purchasing a cheaper TV package. Simple cutbacks may be all it takes to have a little more wriggle room and financial independence. Being money motivated can also start by taking control of the situation and pre-empting before you are forced into a position you don’t want to be in.
Ways To Increase Your Income
Reduce Direct Debits
This is money that automatically comes out of your account at intervals. Take control and stop anything you do not need. For example, you only need one Amazon Prime account / Netflix account, you can find an integrated telephone, broadband and tv package, and you can switch to SIM-only deals. Making simple changes with money leaving your account, will leave you with more at the end of the month. It can be easy to lose control of what you have signed up for, especially when free trials end. Every 4 weeks, make sure that you know what leaves your account, and when, making sure that it has your full approval before leaving your account. Otherwise, you will be losing money every single month.
Swap Credit Cards
You can be money motivated, and obsessed with saving money. The two come hand in hand – and you know what? It doesn’t make you tight, it makes you self aware. If you have credit cards, know what the APR is, and what you are spending on interest every month. Interest does nothing but just take extra cash from your pocket, and that stuff hurts. If your APR is too high, have a look at both Experian and Clearscore. See if you can get anything better. Many have balance transfer offers. Meaning you can transfer your balance to a lower interest card for no fee and interest-free. Many offer 3-6 months, some however do offer 12-18 months. Not only does this reduce your interest payments, but will make your minimum payment lower when the promotional periods end.
Whatever you do, to stay money motivated, focus on your credit score. This is the enabler for better credit rates and more financial freedom. Consider getting the Experian 30 day free trial. In this, you will find out the flaws in your financial situation and how to improve the situation. Remember to cancel once you are down however because it does cost £14.99 a month! Also, consider taking part in Experian’s credit score booster.
Profit and Loss Charts
When you have a free hour, try to create a profit and loss chart. I do this, and it is the easiest way to find extra outgoings that I can cut out. You can also find out how much you spend on regular outgoings – including gas, electricity, water and food. You may find that these are a lot higher than expected, resulting in a change to a smart meter, or a cheaper supermarket. I also find that I spend less when I am trying to track it. I will make my coffees at home instead, or not buy that blouse I like but didn’t need. The biggest thing you can do for financial freedom is to be the one in control, and physically contemplating and questioning your household finances.
Take Part In Side Hustles
Although easy ways to make money are dying out now, there are still a couple of ways to make some extra few pounds every month. You could create a blog if you enjoy writing. Perhaps if you’re a crafty person you could make things to sell. Especially great at Christmas!
Surveys
Surveys are a great way to profit from a few extra minutes. I use Prolific, which sends you university surveys as soon as they become available. All you need to do is complete the demographic form, and relevant surveys will come your way as soon as they are available. You can withdraw as soon as you have made £5 – I can easily make around £3 a day, which can easily be an extra £90 a month.
Matched Betting
No-risk matched betting aims to utilise welcome betting offers and free bets. The gambling world is based on enticing users to use their bookmaker site over other competitors, so matched bettors aim to maximise these promotions to profit. Profits are near guaranteed because the bets placed are free, and they are highly likely to play out the way you expect. You do not need any gambling experience, and your stake will never be put at risk because you cover all outcomes.
Money Motivation vs Happiness
By all means, by money motivation, I do not mean being driven by money. We can all see that that is an unhealthy relationship, especially as it is just as important to live a little. Surely money in the bank is great but without an end goal for it, then it is simply a number.
Be happy in the process of saving some extra money and having the confidence in cutting corners, but find a balance, and work out when you are happy and you need to tone it down. Otherwise, it is a spiral where you’ll end up like an extreme cheapskates contestant, washing your laundry in the hot tub to save pennies. Know when it is right for you – like everything, balance is key! Everyone is worthy enough of making a stand and changing the current situation – so never be afraid to make the jump and get stuck in!
How do you get money motivated to save money?
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