Summary

The author improved their financial situation by adopting a lifestyle aligned with their income, saving money through financial re-education and conscious spending, and investing to multiply their savings.

Abstract

The article outlines a personal journey of financial transformation through three key steps. The first step involves recognizing one's economic level and aligning living expenses accordingly, avoiding the trap of living beyond one's means. The second step emphasizes the importance of saving money by changing spending habits and seeking alternatives to unnecessary expenses. The final step focuses on the concept of investing saved money to generate more income, leading to financial freedom. The author stresses the significance of financial re-education, conscious consumption, and informed investment strategies as the foundation for achieving financial stability and independence.

Opinions

The author believes that aligning one's lifestyle with their income is crucial for financial health.
There is an opinion that rich people maintain their wealth by saving more than they spend.
The article suggests that eliminating or replacing superfluous expenses is a key component of saving money.
Investing is seen as a necessary step to multiply savings and achieve financial freedom.
The author values mental clarity and self-improvement, such as meditation, as tools to avoid impulsive spending and manage money effectively.
Consistency and dedication in investment strategies are considered essential for successful financial growth.

How I Improved My Financial Situation in 3 Simple Steps

And you can do it too.

After realizing how I overspent my salary, savings, on things I didn’t need at the time was shattering. I didn’t realize how I was careless and irresponsible in managing my own finances but it was all in the past.

I changed my mindset and started following an obvious simple steps that anyone can do to manage personal finances. I’ll show you how.

Step one: Living up to my standard

I needed to recognize what my economic level was to live up to it.

I’ll give you an example: if you earn $500 a month, you can’t pay a rent of $400, because then you won’t have enough money for food and other basic things like transportation.

So, in this case, we need to accept that, at the moment, it is not possible to live in an apartment with that price, right?

Here comes the cat’s leap: we often can’t easily accept our pattern — we want to have a lifestyle that doesn’t match what we earn and we end up accumulating debts instead of having money left in the account.

Personal tip

The first step proposes a financial RE-EDUCATION in which you need to deal with your current situation and adapt to it. If you have a hard time changing your way of thinking and your habits, look for ways you can do that.

Second step: Save/take care of the money that is left over.

Do you know what is one of the biggest secrets of rich people? They SAVE more money than they spend. That’s why they always have money!

When I started to live within my economic standard, money started to be left over naturally, because I was already aware of what I had and didn’t spend what I couldn’t. If I needed to do something that involved money,

I looked for cheaper or free alternatives. The more money you have left, the better!

This requires letting go of the internal impulses that make you spend money unnecessarily. Normally we want to fill ourselves up by acquiring unnecessary things, but this will never end. Find ways that will put you in a happy state so you don’t discount your inferiorities on purchases.

Personal tip

In this second step you also need to eliminate/replace the superfluous things you normally spend your extra money on.

For example: instead of going to the cinema and spending on tickets, transport and food, you can watch a movie at home and so you can do what you want without losing money.

Third step: “Multiply” your saved money.

Don’t get on the bandwagon of spending your money because it’s left over. Take care of him wisely!

It is necessary to invest your money in something that multiplies it . For example, if you spend $10.00 to make a cake and sell it for $25.00, then you will make a profit of $15.00!

There are several ways to “multiply” your money: you can invest with the help of a broker, or you can leave it in a checking account that has an automatic income, you can set up a business that generates profit, etc.

The possibilities are endless. The moment you manage to invest your saved money well, you will achieve financial freedom!

Personal tip

Study hard before choosing a way to “multiply” your money. Also keep studying and improving yourself after you start investing. I recommend focusing on just one investment strategy at first until it works, because everything we do with consistency and dedication has results.

I confess that nowadays I’m a simpler person: I don’t have a wardrobe full of clothes left over and I don’t even have many possessions, but I take very good care of what little I have.

My laptop is about 2 years old and works great! Meditation has helped me a lot, because now that I have calmed my mind, I no longer discount shopping. I have the mental clarity to take care of my money VERY WELL, even without having studied much on the subject.