Why saving money can make you feel like a million bucks
A mountain of debt isn’t only bad for your bank statement – it can also harm your health. But a few simple changes can get you back on your feet financially, emotionally and physically.
A mountain of debt isn’t only bad for your bank statement – it can also harm your health.
Financial planner Canna Campbell, author of The $1000 Project, has seen the devastating effects of financial stress, including feelings of guilt, shame and remorse.
“There’s stress and anxiety, and a lot of negative energy,” says the creator of popular YouTube channel SugarMamma TV.
But a few simple changes can get you back on your feet financially, emotionally and physically.
“It’s like exercise; we need to take care of our bodies and put the right ingredients inside for optimum energy, and the same is for our financial health,” says the mum of one, whose book outlines her simple strategy for saving and earning money outside a regular salary.
Canna has helped people go from being tens of thousands of dollars in debt to multi-millionaires, and says overcoming a dire financial situation is empowering.
“It gives you self-confidence,” she says. “You can be relaxed, and when you do spend money it’s guilt-free because you know you can deserve it. When you look at the progress you are making it can be a real motivation.”
Canna Campbell’s top tips for money mindfulness
- Have a budget
Know where your money goes and where to direct it. Most people have no idea how much it costs to live. When you know that, it’s enlightening.
- Be on top of your debts
Ideally, have no credit card debt and pay it off in full each month. If you do have debts such as HECS or a home loan, make sure you pay off extra each month.
- Pay cash where possible
It hurts to pay for things in cash, so you tend to spend less.
- Learn your financial triggers
Often we buy things out of convenience or habit, or because it’s on sale or there’s an emotional trigger behind it.
- Use credit cards wisely
Use them like carbohydrates – the right amount is OK but if you have too many you feel rubbish and you put on weight. If you use credit cards properly, they’re great for managing cash flow and for rewards like frequent flyer points.
- Build off wealth and earn passive income
Passive income means our money is working for us, rather than us working for the money. Over time, can help you cut back on work or even speed up retirement.
Struggling to stay on track? See Beck Wadworth’s top three tips for staying organised and on track in 2018.
Written by Michelle Rose