I used to always balance my bank account between zero euros, minus 50 euros, and about a thousand euros. I was so used to always being broke that at a certain point I was like, you know what? I'm sick of this. I really want to learn more about how to stop being broke instead of scraping for cash every single month. I resented the fact that money felt like something I was fearful of. I started doing some research and after a while, I finally started accumulating more money instead of living from paycheck to paycheck.
The tips and tricks I applied to my life, you can apply too so bear with me while I share my 3 steps on how to go from zero to financial hero.
Let’s stop being broke together
Besides the obvious mindset changes you would need to make, there are also practical sides to learn how to stop being broke. If you’re in a negative money cycle right now, or maybe you want to be prepared for when one comes, I have 3 things you could do to get out of that.
1. Take charge of your numbers
A lot of people shy away from doing so because they were once told they’re not good with numbers or maybe you don’t like working with Excel sheets. Let me tell you one thing: if you don’t have sight of your numbers, you’ll never get to the financial situation of your dreams. I’ll talk you through what my Excel sheets look like and I promise you now; if I can do it, you can do it too.
- FIRST TAB: What do I have in terms of liquids? So things that resemble cash. Could be gold, could be cash, could be something on a bank account.
- SECOND TAB: Do you have any debt? Do you owe money to people or organizations? This tab is where you keep track of that.
- THIRD TAB: What is coming in daily? Add your numbers consistently.
- FOURTH TAB: Take a look at what is going out, like fixed costs: are you renting an office space? Are you working with virtual assistants? Your debt is also a part of this tab so make sure to put it here too.
Step 1 to stop being broke is knowing your numbers, because when you know stuff and when you're self-aware about them, you're gonna start shifting gears more efficiently.
2. Take control of what’s going out
When you’re struggling financially or as a business owner in general, it’s crucial to know where your money is going. Spending money isn’t always necessary. Look at the costs you have and see where you can cut costs, like the examples I gave in the previous step: an office space, virtual assistants, etc.
Does that mean not spending money on coaches or courses or learning skills? No. I would definitely say continue to develop yourself so you can become as valuable as possible.
With this step it’s important to think for yourself and to not let other people decide for you, because what might be of value to you might not seem as valuable to others. Categorize your expenses in assets or liabilities. What expense makes you actually gain something? And what things could you live without?
Try and shave 10-20% off of your fixed costs because they’ll drain your bank account really quickly and that’s obviously what we’re trying to avoid.
3. Aim for a win
This is more of a mindset step, but it’s paramount if you want to stop struggling financially. Don’t focus on the negativity too much, like the news. Even if you are adamant about watching the news every day, be my guest but for the love of God don’t let it cloud your brain too much. If you’re not in a financial rut, you’ll create one that way.
Focus on what your dream life looks like — mind map it on a blank piece of paper and allow yourself to tap into your imagination.
Allowing yourself to name whatever it is you want, will help you play to win instead of playing not to lose. There’s a big difference in mindset between those 2 situations. Living without direction isn’t really living at all, so be brave enough to dream and give yourself direction.
Are you ready to stop being broke?
I’d like to end this article by saying that it's okay that you are where you are right now. Sometimes it’s not your fault and sometimes it is, and perhaps you feel a bit ashamed of that. Because you thought you needed to be smarter or you needed to know more about numbers. However, it might be time to forgive yourself for being in this situation because you have the rest of your life to build a better financial situation for yourself.
And you can start right now!
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PS Are you looking to expand your knowledge on money mindset and money management even more? Lucky for you, I’m currently launching The Bold Money Makeover, my new program where I’ll teach you everything about how to manage your money, how to re-establish control and how to transform you into a professional money magnet. Join me here: fastforwardamy.com/theboldmoneymakeover
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