The first step to not being a poor is to spend less than you earn, but is it better to cut your expenditure or increase your income?
Should you a) EARN MORE?
or should you b) SPEND LESS?
Personally, I'd recommend going for c) which is do both of the above, but that's less of an interesting post, so screw it let's see which is better.
You can earn your way out of any financial problem you might have. Got a lot of debt? Get a ton more money coming in and you can clear it.
Want fancier stuff? Earn the money to go buy it, or afford the loan you take out to buy it.
Want to make the world a better place? Earn more so you can afford to throw money at problems until they go away.
Bankers have proven that money is not a zero sum game. It's everywhere. You can make money doing all manner of stupid stuff nowadays.
Nobody reading this should be struggling for cash. What you're actually struggling with is some mental block that is stopping you from making money.
I'm not qualified to deal with that, but I can think of at least a couple of ways for anyone reading this to make up to £3k a month fairly easily. It'll just take work!
If you're struggling for ideas, and I like you, message me and in 30 minutes you'll have the start of a business plan.
Maybe, if I'm being generous, there are like 4 people on my friends list who genuinely couldn't cut costs further if they really wanted / had to.
Most people's biggest expenses? Housing, food, transport.
If you want to make some cuts, look to those 3 as your first step.
Be more conscious of your spending. Spend as much as you like, but spend it on stuff that makes you happy and brings value to your life. Not just mindlessly on daft things you don't really need.
Who here spends more than £50 a month on TV packages? Does your life really get better because you turned into a vegetable in front of a TV for hundreds of hours a year?
1) Earn some money - suck it up princess, it might be a bit rubbish and hard work
2) Cut your costs so you are breaking even or saving - be ruthless
3) Enjoy what you spend your money on
4) Start earning money doing something you enjoy
5) Spend your money consciously
6) Get up to £75k a year doing what you enjoy
7) Invest the surplus so you don't have to keep working for the rest of your life
That'll do ya.
The second aspect to not being a poor is Get. The. Frig. Started.
One of my favourite phrases is “It’s not about timing the market, it’s about TIME IN THE MARKET”. The sooner you get started, the better.
True story - I am impatient AF. I want all of the things immediately. So when I got into investing, I wanted the fastest way to make money. I didn't want this whole - 'invest for the long term' bullshit.
So I tried a lot of different (dodgy) ways to make my millions overnight.
No prizes for guessing how many of them worked. (2 of them actually, but at a price, a story for another day).
What I failed to do though, was actually get started on a number of strategies. I'd spend ages researching, modelling, planning and strategising - only to not pull the trigger.
Mostly I was scared of failing.
If I had just started with the kind of investing I now help people figure out, I would currently be a few hundred thousand better off, and by the time I hit "normal person retirement age" probably into the tens of millions better off.
Yep. Read that last paragraph again.
By starting investing in a boring, sensible way a few years earlier, that missed opportunity will result in me missing out on more money than most people earn in a lifetime.
I'm not a genius. I don't have inside information. I'm not even particularly talented when it comes to investing if I'm being honest.
I've just learnt that doing stuff on a consistent basis and having faith in it = results most people would be shocked by.
So, get started today. Do the 1 thing you have been putting off when it comes to investing for your future. Whatever that might be.
The third thing to consider to not be a poor, is to not be a cheapskate and invest in yourself!
I'm often mocked for being a cheapskate, but that's because I haven't always been one!
Exhibit A; 911 Carrera 4S with a number plate that cost more than the average car.
But to be fair, the number of women I pulled because of it? Zero.... what was I thinking?
In my Money Masterclass group we talk about how much capital you need to live the ideal life you want, and cars are quite an expensive line item in a lot of peoples budgets.
Nowadays, I'd look at something like this car and see 3 things.
1) £80k cash tied up that will be worth £40k in 4 years time, that could have bought me a house for cash
2) £1k a month in lease costs over 3 years that could be used to fund investments in the stock market
3) A cool as balls car that I still kinda want, but am not willing to spend the money on
I get the whole 'you can't take it with you' and money is there to make you happy. And if cars really do..... rev..... your..... engine (nyak nyak nyak), then crack on and treat yo self.
But don't ever come whinging about not having sorted your and your family's financial future while you're splurging money up the wall on unnecessary shit like this.
Now most people don't really know how to do the alternative stuff. Like how to buy an investment property, how to set up a stock market portfolio so they have somewhere for their £1k a month to go into, etc.
The people I work with have realised this, put their hand up, and are now getting a plan of action they can follow so they know where to invest.
Hopefully they won't become as boring as me and invest all their free cash into sensible things. But when they do, they'll be using investment income to pay for it!
If you have no clue what you're doing, don't fret, you aren't alone. Here to help you stop doing stupid shit that doesn't make you feel secure when you're ready.
Take a look at what the Money Masterclass looks like over here and see if it’s something that would benefit you.
If not, just stop wasting money and start earning a bit more. Simple? Yes. Easy? No.
Good luck with it though!