MINDHUGS WELLNESS

Moving from neutral to financially secure part 2 Last week we started with the lifestyle changes that could help us control our spending, avoid impulse buying and free some money on our expenses list in order to facilitate our movement from a financial neutral stage to a secure state. Today we continue with three more lifestyle changes; 1. Save your loose change You remember the old saying that "little drops of water makes a mighty ocean? well, it applies significantly in finances too. I daresay, even a lot more in finances. In my book "SMART MONEY" i spoke about the phenomenal effects of accumulation. Lets do some very basic math. If you should save 20p a day for 300 days (about a year), that will be 60ghc.This could pay for some very needed items at home or even take a huge chunk off your utility bills.  What if you saved 50p a day? The benefits are enormous. Do not despise the coins, neither discard them. Here is an idea for you; Get a bottle, a glass jar o...

Moving from neutral to financially secure Last week we talked about getting from a deficit financial status to a neutral status. The neutral status is where your expenses is always equal to your income. In effect you always spend all you make. There is no money left for savings, much less investments. Living like this is called living on the edge. Any emergency or unexpected expense becomes a huge headache for the family or individual.  The focus of today's post is to suggest ways on how to organize your expenses in order to leave some spaces and release some funds for savings and later investments. Here are a few guidelines. Avoid impulse buying One of the most devastating habits that prevents people from saving money is their inability to resist the impulse to buy. Unless you gain mastery over such impulses you will always struggle to save and therefore invest. Here is how to win the war over impulse buying;  1 . Always make a list and stick to it. ...

From Deficit to Neutral Knowing your financial status is the most critical stage on your journey to proper financial management. From last week we learned that deficit is where your monthly expenses far exceeds your total income and hence you either have to borrow or you consistently live an impoverished life at the latter end of the month. More often than not anyone who is in a deficit financial status stage has debt and poor financial habits. The focus of today's post is to help you get out of deficit and step unto the level of neutral. Here are a few guidelines.   Draw a budget and list your expenses The first step towards getting out of deficit is to calculate exactly by how much you overspend your income by listing every single thing you  purchase in a small journal. Add up all your purchases and expenses and compare it with your total income. For guidelines on how to draw a simple budget, refer to my post on budgets. Be frugal After you get an idea of ex...