Over at the Acorns blog, Jackie Lamb has a nice piece contrasting wealth-builders with survivors. The key difference being mindset. Notice I wrote “mindset” and not “personality type”. That’s because if you’re merely surviving, making the change to become a wealth builder is something that can be learned and implemented – and Bill Butler can help you with both steps.
Attributes of Survival mode
- Spend more than you earn
- Not knowing where your money disappears to
- Little to no savings for emergencies
- Living from pay day to pay day
You don’t have to have a low income to be in survival mode, but what we can tell you is when you are in survival mode you are wasting a lot of time, energy and money, not to mention stressing a whole lot.
Escape Survival Mode
Escaping survival mode requires a mindset change: you need to manage your household finances like a business.
- Take responsibility for understanding your true financial position
- Research solutions available to you when your finances are heading in the wrong direction
- Visualise your income as a tool for wealth building and passive growth
How you use your income will determine your path. Some of us find it easier than others, some of us simply lack the time and some need a coach to get to the starting line or to make progress. Whatever is holding you back, recognise it and address it. The tools for escaping survival mode have become a lot more sophisticated in recent years with many free budget tools available but if you are struggling you do not have to go it alone. Services, like Bill Butler, can help relieve the stress of juggling, help you get a handle on your financial position, problem solve your challenges, and best of all, with coaching, get you tracking towards financial success.
Avoid Lifestyle Creep
Lifestyle creep is the phenomenon, where your earnings are much higher than they were ten years ago, but somehow your bank balance is still in the red every payday. The root cause of this is (again) mindset: that income is there to be spent. You can survive just fine with this mindset. But you will never build wealth. The game is to be proactive. This means knowing (in advance!) what you’ll allocate the money to as you free up some money allocating it to your financial strategy not the slush fund. Start with a stacked debt repayment plan making sure you understand the difference between good and bad debt. Once you’re “bad” debt-free, build your savings to kickstart an investment plan. Being proactive secures your escape from survival mode and builds your wealth.
Compounding and Confidence
Your money isn’t the only thing that will compound with interest over time. As your wealth builds, your freedom and options will increase exponentially, with a compounding effect on your confidence and ability to plan for the future. “Setting up a budget together with short term and long term financial goal planning puts you in the driver’s seat.” says Chipo Hove, Cash Management Team Leader and Money Coach at Bill Butler, “Getting a strategy in place and achieving goals builds confidence and sets the ground work for building financial success”.
If you are stuck in survival mode, the earlier you make changes the better – because bad habits will lead to more debt, less choices, and increased temptation to “treat yourself” for all the hard work servicing the interest payments! Call us now, and arrange a chat with a Butler to see how quickly you can start building wealth instead of surviving on the interest-repayments treadmill.
Jay Stephens – Lead Thought Provoker
Jay began his career in London with Rabobank, CLS bank and a Lloyd’s of London syndicate. Jay’s work has spanned corporate communications, content editing, newspaper articles, courseware, blogging, policy drafting, technical writing, and a regular crossword. He is passionate about 8-bit tunes, self-improvement, and the Oxford comma.