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Hello and welcome, I am Rebecca Robertson. I am your host of the money mastery and financial planning for women podcast show. And, today we are going to be talking about eight things to do, to create financial abundance. So, what is first on the list? The first thing I want to talk about is something called ‘compound interest.’
- Get yourself into compound interest So, compound interest is that this, everyone talks about it being this magic thing and it is really not magic; it is something that has been around for absolutely ages and it basically allows your money to grow that much quicker. So, if you have an investment which could be a pension or an ISO of some description, it might be a bond which is a tax wrapper kind of bond and it might just be a general investment account. It means that when you earn interest on any returns, that is added to your account and therefore, the next year, you are earning more interest on your interest. The more money you have in that part, the more interest you can earn and then, the more interest you can earn the following year because it has that compound effect. So the main thing for number one is, understand certain financial things that you might not have ever heard of or come across before, or even if I have said that now and you still do not quite understand it, then go and have a google of it. Go and, you know, come into my group and ask some questions. Understand what certain things are that are out there, which will allow you to create your financial wealth and financial abundance.
- Pay off debt early. Now, that can be sort of a bit of a funny subject because I do feel that if you have got something that is on zero percent and then you have got money that is invested, that is maybe getting, you know, has the potential to earn more than zero, and certainly, more than one or two percent, then it would be better to leave that money invested, potentially and leave the other debt, a zero percent. if you are paying off debts, it is best to pay off your highest interest rate first, and you are also better off, potentially clearing off some smaller amounts which can mentally have a really positive effect, in terms of getting rid of smaller amounts that feels like, makes it feel like it is something bigger than it really is.
- Build an emergency fund, so that if something wants to happen, you have got some backup, and ideally, at least, two to three months. Bit boring but it is needed. And so, at this period of time, if you are not going out so much, if you are sort of cutting back on certain things, now is a really good time to build up an emergency fund.
- Set some short-term goals to be really thinking about your future. And it does not mean that you cannot be then thinking about, you know, all you are doing is clearing off decks. I find sometimes, that can be quite hardcore and you end up spending two, three, four, five years, not doing anything else and any other planning or any other investing. and sometimes, it might be better off to pay those debts over a longer period because then you are rather doing other things in the meantime, which with compound effects can actually have a more positive effect for your longer term future. But, start thinking about what those short term goals are, and start thinking about what it is you want to be achieving over the next few years and further ahead.
- Talk with your partner. So, even from short, medium and long term goals, have the talk with your partner. so these are things that you want to do but you are not quite sure where to start or you know that you need to get your partner involved, then think about those conversations and ask to sit down with your partner, say, when is it a good time for us to chat about our money? I would really like to have a chat about it. And set some time aside to do that. What is on my list? Where did I get to? So one, with two, three, four, and five. Okay, so we got three more to cover.
- The next thing is budgeting on steroids. So, what I mean by this is, not just knowing what your general outgoings are, you know, your gas and your electric, it is also looking at all your spending and all your setting budgets for everything.
- Review your spending. So spending, having a more conscious level of spending, knowing where your money is going. So many people get to the end of the month and they really just do not know where their money is gone.
- And then finally, the last one is mindset. And mindset is such a funny subject because it is not something that you can automatically, wave a magic wand and you have got this amazing positive mindset. There is a case that you do need to, possibly, read some books and research things, join groups like my free money mastery collective facebook group and get that education and allow yourself to grow into these positions. So, it means that you are able to then take the next step and think about, what you could potentially be holding you back? A great way of doing that is journaling. Everyone talks about doing it but sometimes we do not get around to doing it. But, as you are, maybe, picking your way through some of these things I have mentioned, that you are actually able to possibly sit down at the end of the day and write out, how that went for you? And write down, what came up for you? And what things made you think of something? Or something that maybe, happened in your past, to allow yourselves to start and layer some of those elements.
I hope that has been of help. I like to keep my podcast short, sweet and sassy; a bit like myself. But I hope it has some really high value impact for you. We have plenty of other podcasts for you to have a listen to, and I hope you enjoy those. As always, I would love to hear from you. Do leave a review and share with your friends and family. And I hope you take care and I will see you again, soon.
Would you like to know more on how you are handling your money? The link is in our bio, to take our money habits personality quiz. do be sure to let us know your outcome .