If you want to create more wealth, it’s not always how much you earn that makes the difference. It’s what you choose to do with what you’ve got. This is why intentionality is a principle that underpins everything we do at Financially Happy. When you make mindful decisions around your money, you can accelerate your wealth creation AND feel happier about the way your wealth inspires your life.
So if you’re tired of waiting for a bonus or your next pay rise before you can increase your wealth, this article is for you.
Keep reading and discover SEVEN impactful things you can do right now to make your money go further while you sow the seeds for future wealth creation.
1. Get clear on your cash flow
It’s easier than you think to create more wealth. All you have to do is spend less than you earn and invest the rest. If you follow this philosophy consistently, you will get wealthier.
This wealth-creation philosophy centers around the surplus between your incomings and outgoings.
The bigger the gap, the more investment opportunities you have. That’s why your core wealth-creation ‘job’ is to increase your surplus through one of these three strategies:
- Increase your income
- Reduce your expenses
- A combination of both
You can figure out which strategy will work best for you right now when you map out your current cash flow using a cash flow management tool.
2. Audit your regular expenses
A lot of people feel shocked when they track their cash flow and discover the truth about their expenses. Chances are you’re paying for things each month that you don’t want and don’t need. What’s more, you’re probably underestimating how much these outgoings are costing you.
According to a recent survey, thousands of Americans waste $348 a year on subscriptions they’re not using. Whether it’s gym memberships you never use or subscriptions you’ve forgotten about, these payments can add up. Imagine what new choices would appear in your life if you freed up this money by cancelling services you don’t value.
In the same vein, you can negotiate better deals for monthly services you do need. For example, can you switch to a better phone deal? Are there opportunities to switch suppliers and save on your utilities or car insurance?
The key is to dismiss nothing because it all adds up. Even a $20 month saving equals $240 a year extra to spend or invest in something you care about more.
3. Review your personal spending habits
Thanks to credit cards, lines of credit, and one-click checkouts, it’s SOOOOOO easy to spend – and that’s bad news for your surplus. $20 here and $50 there doesn’t feel much at the time, but these small payments add up and eat into your surplus [and leave you with a financial hangover].
When you set a personal spending budget, you give yourself a positive constraint that protects your surplus and helps increase your wealth.
4. Practice intentional spending
Intentional spending is simply the practice of spending your money consciously. Instead of pulling out your card, check-in with yourself first to ensure you really want the thing that’s caught your attention:
- Does this purchase align with your values?
- Are you buying this to fill an emotional void?
- Is there another way to experience the feeling you want that will feel better financially?
With intentional spending, not only do you know where every dollar goes, but you’re happy with its allocation. You don’t get lumped with unexpected bills or financial hangovers either because you no longer spend spontaneously or make buying decisions that hurt your future self.
Best of all, your wealth grows because you stop spending money on things that create clutter or that you quickly forget. As your surplus increases, so does your level of choice and freedom.
5. Get creative with your budgeting
One super powerful way to increase your surplus is to reduce your expenses without reducing your lifestyle. There are plenty of creative ways you can do this. For example:
✔ Spend less on socialising by having drinks at home before heading out.
✔ Save on your groceries with meal prep, shopping lists, creative use of leftovers, and less frequent visits to the store.
✔ Brew coffee at home instead of buying takeout or keep snacks in your bag rather than buying from the shop.
While these little swaps seem small, they help reduce your monthly spending. Over time, these little tweaks grow into significant savings, which increase your surplus [and accelerate your wealth potential].
6. Be aware of the money blob!
How you organise your money makes a huge difference.
It’s tempting to keep everything in one bank account because it feels simpler to manage – but it can also lull you into a false sense of security.
For example, your bank balance may show $10k credit, but when you dive into what that money is for you realise that once you’ve paid your credit card bill and taken out your vacation fund, there’s not much left!
Much better to open different bank accounts for different intentions. For example:
- One for your Get Out Of Jail Account
- Another for your vacation fund
- Another for your house deposit etc.
With your money separated out, it’s easier to stay on top of where you are. What’s more, you’ll also feel more connected to your money too because you’ve given it purpose.
7. Transform your definition of wealth.
We’ve got money all wrong.
Money is simply energy that holds the potential to help you create the life you want. Unfortunately, we don’t treat money this way. Instead, society holds money as a status symbol and an indication of success.
It’s dangerous – because when we chase money for the wrong reasons, we risk losing our self-esteem and confidence if our wealth drops.
You definitely want to seek abundance. We live in an abundant world [one look at nature is proof of this], but don’t let your wealth be defined by your net worth alone. Instead, track your net wealth by measuring how fulfilled you feel in your relationships, your work, your health, and your hobbies as well.
When you choose a holistic measure of success, you feel wealthier in all areas of your life – which helps you feel financially happy.
Take the next step to more wealth
Do you want more strategies to increase your monthly surplus?
Could you benefit from proven advice to better leverage your income, expenses, savings, and investments?
Do you want to master the money mindset piece alongside wealth creation and management strategies so you can love your life and your bank balance?
If so, we can help….
The Financially Happy Program guides you on a holistic journey which transforms your relationship with money, wealth, and abundance.
This DIY program blends positive psychology and money mindset practices with the practical advice you need to master your personal finances once and for all.
Join the program and you’ll discover how to:
- Manage your monthly cash flow to increase your surplus
- Invest and save your money to accelerate your wealth-creation
- Create the money you need to live your dream life
- And more.
This in-depth program is for you if you’re ready to switch on an abundance mindset, take FULL control of your finances, and find the courage to believe your dream life is possible. Money may have been a reason you said no in the past. Choose the journey of Financially Happy, and you’ll never have to compromise on the things you care about again.