The last four years have been a financial experience for me. I’ve been working almost every single day to make more money. I strive to generate more profit every year and it’s been working out pretty good. And no, that isn’t always easy at all! This got me thinking, how do you manage your money now for later? I can work hard now, I’m young enough. But what happens when you and I are older? Do we still break our backs to get money in the bank? Or do we get to lounge around with feather boas and martini’s? Let’s dive into that, because we have to take care of our finances now for later. Take notes on this one ladies!
Create a plan
People seem to be more successful when they have a goal in mind. When it comes to earning more money for yourself, it’s good to create a plan to actually make it happen. I have a goal of earning at least €10.000 per month this year. I’m currently getting almost half of that every month. In order to get to the €10.000 per month I have a plan. I’ve written it out and I’ve made several adjustments along the way. And I didn’t just create the plan, I actually implement it every day.
In order to reach €10.000 a month I started several side hustles. Those are my blog and Youtube channel, which have been my side hustles since I was eighteen. My main job is running my marketing and PR agency Bloggers and Brands. This is where I get 90% of my income at the moment. To get to my goal I constantly work on getting new clients. In order to do that, I actively work on my portfolio and I do a lot of networking. I also approach new clients almost every day. Steady and continuous action are the way to go. So, what are you planning to do to get to your financial goals?
Keep track of your money
I like tracking my money, so I know where it goes and how much I have. I like doing this with a simple Evernote document, in which I type out all my monthly costs. I can live of €1400 per month, including all the costs I make for my dog. This does not include shopping money for fun things like clothes, events and dinners. As a minimalist, I don’t buy many products anyway, so I can save more money. I’ve been tracking my money ever since I was a teenager. I’ve seen my expenses and income grow, and I love knowing how that happened.
I think many people get into financial trouble because they don’t know where their money is going. Not knowing where your money is going is a big problem! You work so hard for it, so you need to know what you’re spending it on. Start tracking your money today! It can be done with pen or paper, a Word or an Excel document. You have no excuse, start writing down all your monthly expenses and be honest. This will help you figure out what you’re actually paying to sustain your lifestyle and if it’s actually necessary.
Spend less, save more
It sounds easy, but most people tend to spend more than they save. It’s quite easy to spend more, especially with all the subscriptions and on the road purchases that creep up on you. If you are tracking your money every month, it’s easy to figure out which expenses you can ditch. I found out by tracking my money, I was spending a lot on food from restaurants. I would by a drink here, a sandwich there and the costs were adding up quickly. On average I would spend between €20 to €75 per month on snacks I bought on the road. Needless to say, I stopped doing that as much as possible to save money.
I also had some subscriptions I didn’t really need. Like a tv subscription while I don’t even own one. I endend that subscription and now I’m saving €20 per month. I’m not saying you have to cut down on everything, just on the things you don’t really use. For instance I’m saving money by cycling 15 minutes to the gym, instead of taking the tram for €5 back and forth. That’s about €15 I’m saving each week, just by not being so lazy. The money I’m saving is going towards things I really want and need. Like a fun day out, dinner with friends or a buffer for when business is slow.
Saving money is key
When I make a lot of money, I tend to save at least €150 per month on my personal account. This rounds up at €1800 per year, which could be €18.000 in ten years. I’m not there yet, but I try to save as much as I can for myself and my company account. The more I make, the more I save because you never know when bad luck hits you. Since many people aren’t prepared for bad financial situations, they end up spiraling out of control really fast when they do happen. People often think short term as in: ‘Can I buy these shoes this month?’ They forget about being able to pay the rent for the long term.
By tracking your income and expenses, you know exactly how much money you can save. To make it a no brainer for yourself, you can setup an automatic saving system. For instance, I’ve setup an automatic monthly payment of €150 from my paying account to my savings account. I don’t even have to think about it, and I don’t even miss the money because I’m so used to it. You can pick any amount of money you like, just automate the payments so you don’t have to worry about it. You’ll be rich before you know it without too much hassle. I know you won’t say no to that!
Quick money tricks
I was watching a Lewis Howes video episode with David Bach on paying yourself first. He mentioned paying yourself the first hour of every day you work. So, let’s say you make €15 per hour working five days per week, that would be €300 you can save each month. This might not be doable for everyone, but I really like the concept as this allows you to manage your money now for later. The formula is so simple, anyone can do it! Another money trick I use myself is to use cash money to pay for things. Swiping your card is easy, but actually exchanging money from hand to hand, makes you realize how much you’re spending.
It also helps with budgeting which helped me manage my money better. Talking about budgets, I love having them! Knowing I only get to spend €200 on food each month, helps me shop smart. I have to put in some extra work to figure it out, but I now actually eat everything I buy. I don’t spend it on foods I don’t eat which means I also throw away less food, whoohoo! The last thing I do is save the cash money I get from returning stuff. I have a small piggybank to save those small amounts of money in. By the end of the year, I sometimes have more than €200 saved up. Which I then put into the bank for save keepings.
Manage your money well
The reason I’m writing this article is because I’m aware of the bad financial status many of us are in. I don’t want you to be stressed out later in life because you can’t afford what you need to live. Neither do I want you to make bad decisions now that will affect the rest of your financial life. As it’s mostly women who end up with less money when they’re older, I thought it would be good to open up the conversation. I’m not saying you shouldn’t enjoy your money while you’re young. I’m saying be smart and think long term! Manage your money now for later.
How do you manage your money now for later?
Kaya-Quintana
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