Where Does All My Money Go?

Where Does All My Money Go?

Ever wondered why, no matter how much you earn, there is never enough for you?

 

Well I am going to explain that today.

It’s funny, once we set up a standing order or a direct debt, we kind of forget about it.

 

What we actually spend half our money on is what I like to call “essentials”  water, food and shelter.

 

Once we have set up that direct debit for our mortgage or rent.

We come home, transport ourselves somehow magically.  Lay our heads down knowing we have somewhere warm and dry to sleep, somewhere to wash ourselves, wash our clothes, cook a nice dinner, even plug in our phone to charge.

Yes that does take up about half our money, 50%.

 

Personally I think it is a good investment, but I do my best to keep the costs down.

 

In America, that is one of the reasons for ‘Tiny Houses’ where people say no, I don’t want to spend that money on housing, I want to spend it on travel and technology, but it is your choice.

 

What about the rest of our money?

 

Well on one hand, half of that, 25% goes on debt payments or savings, depending on your personality.

 

The other half, 25%, goes on things we get really excited about.

I am talking days out, I am talking delicious food, I am talking getting together with the family, birthday presents, Christmas, holidays, even just a decent phone.

And we are not even talking vices, wine, chocolate, smoking, or whatever else you do?

 

Maybe that explains why, no matter what you do, this is only 25% of your after tax income.

That’s why it never seems to stretch as far as you hope it will!

 

So hopefully that answers the question, where does your money go?

If you would like some help, message me on Facebook, or book one of my workshops on Money Mastery.

 

Thank you for watching, Jenny

 

 


Get Out of Debt Forever

Get out of debt forever

yes it is possible,

mainly I focus with Money Coaching on bringing money in,

so when someone brings up debt half way through a session, I know it is probably a little more serious than they are letting on,

so I recommend taking dramatic action.

 

My 2 steps are:

Firstly: Dramatically, drastically reduce all your expenses

This does involve having really horrible, embarrassing conversations with people, about getting out of things you have committed to, that are awkward and emotionally yuck.

Remember that yucky feeling is what will stop you going into debt again. Breathe.

I did say they were dramatic.

 

Secondly: Get a part time job

All my clients are in business and we try and get a quick win on their business or schedule a follow up session.

The reality is sometimes businesses go through peaks and troughs or they just take longer to make money that you expect so getting a part time job does at least bring in some income, which does make a difference.

Now these are quite dramatic solutions, and the reason is to try and shock people out of denial, into dealing with their debt.

Often there is someone in their life they can talk to but they haven’t because they are too embarrassed.

After a conversation with me! They are much more likely to do that and come up with a less embarrassing, less awkward situation.

So it is about getting out of denial and into action because once you are in action, the worry and the stress just calms down quite a lot.

It can be done and all my clients who have followed this advice have got out of debt and none of them have got back into debt.

So I know it is a difficult subject and I wish you the best with it.

Thank you for watching.