Stop making your finances so complicated! There are three ways money flows.
So many people don’t take control of their finances because it can feel so complicated that people don’t know where to start.
Well I’m here to tell you, that it doesn’t have to be overwhelming, take a deep breath.
There are actually only three ways that money flows.
- Money coming into your accounts – INCOME
- Money expanding within your accounts – INVESTING
- Money leaving your accounts – EXPENSES
INCOME: This is the money you generate from your job or your business. Personally, I’m a huge advocate of having multiple streams of income regardless of who you are or where you are in your career. One of the best ways to manage all your financial priorities is to focus on making more money.
INVESTING: Keeping your money in cash just isn’t going to cut it! You need to earn interest to be able to grow your account balances. It is very important to understand what you are investing in and also understand the risk, because while growth is the goal, you can also lose money. If you want to focus on investing, you can start small…you don’t need to be day trader. Speak to an expert.
EXPENSES: Yup, life costs money, but you need to be conscious of how much you are spending and what you are spending your money on.
You should only focus on one at a time. You also need to take small steps in whichever one you are working on.
Whichever of the three aspects of money flow is easiest for you to tackle… that’s where you should start.