3 Amazing Finance Planning Habits

finance planning habits The Careerclub

Don't like talking about money? You're not alone. It seems that for many people the very subject brings up a mixed bag of emotions. It's like really hot sex - you love it when you have it but it just doesn't last long enough;  it's never there for you when you really need it; or it's been so long since you've had any, you've forgotten how good it feels.

Money is often a dirty word. But there's no denying it makes the world go around. When you have it you're in a position of power and influence that can really change your life,  but when you don't have it or don't have enough of it, it can fill every minute of your day with worry and dread. So how can we take more control over our finances and change our relationship with money? Because whether you know it or not, we each have a relationship with money that's either healthy or toxic. 

Finance Planning Habit No. 1

Can you imagine the feeling you'd have if you could honestly say loud and proud “I’m working to become wealthy? I’m not just working to pay my bills.” As with every other aspect of your life as a busy mum, it all comes down to effective planning. You need to create a wealth plan. I know it sounds weird, who the heck has a wealth plan? Well, you know who has a wealth plan? Wealthy people. That’s who. That’s why they’re wealthy. Once you have a plan in place you’ll be more motivated to keep it going by developing small but simple to stick to habits. 

Finance Planning Habit No. 2

This is such a game-changer for your finances. It can be tricky to get started but stick with it and you'll be amazed with the results. It's the 70/30 rule. Once you've paid your taxes and made your pension contribution, aim to live on 70% of your income. That means your 70% is spent on the usual bills, necessities and luxuries. 

Finance Planning Habit No. 3

With the remaining 30%, consider spending it in three ways:

Put 10% into savings. Think of saving like any other utility bill. It has to be paid each month. You wouldn't ever consider not paying your electric or phone bill each month, so think of 'paying yourself' in the same way. It's a non-negotiable.

Give one-third to charity, give back to the community and help those who really need it. Can you imagine the difference in the world if each professional mum gave 10% of her income to charity? It would make a huge impact.  Not only for the world, not only for the charity but for you and your mental health. Studies have shown that those who perform acts of generosity are proven to have lower blood pressure, less anxiety and depression, and lower risks of dementia and cardiovascular problems. Some studies also show a correlation between philanthropy and increased lifespan.

If we could start a global trend, then perhaps every working person would give 10%. And the trick is that no amount is too small. In fact, it's probably easier to start when it's only a few hundred euros and that way, as your salary increases with each promotion, and you become more and more wealthy, which you will as a successful, professional mum; you'll find it easier to keep giving, as you'll have developed the habit.

Use the next third to help you create wealth. Try to think creatively around this one. Think of how you can use your money to buy, fix, manufacture or sell. The idea here is to engage in some kind of commercial activity, and as a busy mum, this will be a small amount of your time even if only on a part-time basis. Use your skills or hobbies in a way that you can begin to add value to someone else, and in turn make a few bob.  You could learn to buy a product at a wholesale price and sell it for retail online. I'm amazed at the number of women selling items from leggings to candles on their Instagram pages and making money doing so. You could invest in someone else's start-up enterprise.  You could upcycle furniture and sell it online. The idea is just to start doing something. Who knows what amazing ideas are waiting to be discovered? 

I know it's a topic we women often shy away from, but we have a huge amount of control when it comes to the family budget and financing. But we've also got to take time to get our own finances in order You've got to start investing in yourself and your future. This is a game-changer because the earlier you start the better off you'll be in the long term. There is a big difference between rich and poor money habits: People with poor money habits spend their money and save what’s left. People with rich money habits save their money and spend what’s left.

The best piece of advice is that it's never too late and the best time to start is today, no matter how small the amount. It's building the good habit now that will change your future. Think about brushing your teeth. It's a small habit you do twice a day, but imagine the impact on your oral hygiene in ten years if you didn't do it.  It's the same with money, get into good habits now that will safeguard your financial health in the future.