How To Get Wealthier Without Earning A Dollar More
by Finnian Kelly
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 underpins everything we do at Wealth Enhancers. When you make mindful decisions around your money, you can accelerate your wealth creation AND create Financial Happiness in the process.
So if you’re fed up 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 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 centres 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 this template.
2. Audit your regular expenses
A lot of members feel shocked when their cash flow management tool reveals 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 study by REST Super, three out of five Australians waste money on subscriptions they never use or forgot they ever took out and 11% pay more than $100 a month. Whether it’s gym memberships you never use or subscriptions you’ve forgotten about, these payments can add up to $00s, even $000s each year. 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 invest in something else that 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. Check out this article to learn more about managing personal spending.
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. When you stop spending on things that clutter your life or are quickly forgotten, your surplus increases – giving you more choice.
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:
- Could you spend less on socialising by having drinks at home before heading out?
- Could you save on your groceries with meal prep, shopping lists, creative use of leftovers, and less frequent visits to the store?
- Could you 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 holiday 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 holiday 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 create Financial Happiness.
Take the next step to more wealth
Do you want personalised tips to increase your monthly surplus?
Could you benefit from tailored advice to maximise the surplus you’ve already got?
Are you ready to accelerate your wealth-creation potential?
If so, WE’re here to help….
Wealth Enhancers’ membership is designed to guide you to Financial Happiness so you can feel freer, happier, and more abundant. Work with us to take FULL control of your finances and discover how to fund the vision you have for your life.
WE’ll help you:
- 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.
Membership is for you if you want to take FULL control of your finances and discover how to fund the vision you have for your life.
Disclaimer: all information contained within this article is of a general nature and should not be relied upon when making financial decisions. Please consult a professional financial advisor or planner (like us!) before acting.