Is your financial ‘plate’ out of balance?!?
I'm on a good income but money still feels tight.…..raise your hand if you can relate.
Just as some nutritionists advise us to whip up a 'balanced plate' (half greens, a quarter protein, and a quarter carbs), the same goes for our wallets. If your cash flow is feeling squeezed, it's time to take a peek at your financial plate.
Picture it this way. As a general guide your money plate should consist of......
50-60% NEEDS
rent/mortgage, insurance, groceries, petrol, daycare, minimum debt repayments
20-30% WANTS
eating out, saving for holidays, hair, nails, gifts, clothes
20% WEALTH BUILDING
extra debt repayment, building up your emergency fund, investing for retirement
What's the big takeaway??? If things are feeling tight, most likely your 'NEEDS' are out of balance and are higher than the 50-60% guideline, leaving you less for fun and wealth building!
Ready for the hard truth? People with high 'needs' will use their wealth building % to cover this higher cost, so that they can still have their 'wants'. However, this is not sustainable and will cost you big time in the long run!!!
Alright, time to take charge! If you're feeling the financial pinch, it's time to give your "needs" a stern talking-to. Start with those pesky consumer debts like credit cards and car loans - we're looking at you!
But let's get real - are all your "needs" truly necessary, or are some just sneaky "wants" in disguise?
And if some of your needs are just temporary, like childcare costs for a couple of years, it might be time to hunker down and ride out this season while putting those wants on hold.
Want to hear more on this topic? We released a full podcast episode on this topic earlier in the month so give it a listen here.
