Build a system, AND make smarter financial decisions
Last week, I talked about the power of money beliefs and how important it is to know what are the limiting ones. They're the villains holding you back from taking action or making smart financial choices (if you missed it, read it here)
Today, I want to talk about the fact that once you know your challenges, you will need to build a system that works for you.
Because everyone KNOWS you need to save more, and invest early.
Yes, we know the rules, but no one tells us the strategy.
No one has taught us how much to spend on specific things or how to spend intentionally.
That's why I developed the 6Ps of Payday Routine. It's a framework I've refined over the years and used with my clients to establish a payday routine tailored to their needs (I still follow this system today).
This is also #2 of the 3 biggest mistakes for people living paycheck-to-paycheck, which are: no guidance, no plan, and no automation (read the full article here).
Starting something new can be intimidating. But remember, you don't have to tackle every step at once. Take it one or two steps at a time, and within three months, you'll have a complete payday routine. Yay!
It gets easier with every single month, that's my promise.
The ultimate goal is for it to take no more than an hour each month. It will make your life much easier, not harder.
Let's get started, shall we?
Today's agenda
- Pay
- Process
- Purpose
- Plan
- Practice
- Persist
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Pay
It's payday, verify your numbers!
It sounds very simple but most people don't do it. Did you know that 60% of employees have found errors in their paychecks? More than 1 out of 2 employees - that's huge! Take 5 minutes of your time to double check, it will be your best ROI.
Process
Crunch the numbers and align them with your goals!
60% of people don't budget, and even amongst those who do, they have no idea what to do with their numbers. Give your numbers purpose otherwise they just sit nicely on a spreadsheet.
For those who don't know their expenses, go to step #4 For those who know their numbers but don't have an objective, go to step #3 For those who have both, good job! Make sure you tweak your habits to reach your objectives if you miss them this month.
Purpose
Save for your dream life
Saving for the sake of saving, hell no! Saving for things you love, for the freedom that it can bring you, for things you dream, hell yes!
What do you want in life? Don't know yet? Close your eyes, picture your ideal life (whether it's a monthly holiday, quitting your job, or investing in a course, let your dreams guide your saving habits). By asking the right questions, you will get the right answers. I believe in the power of manifestation, but only with a plan.
Plan
Adopt the Mindful Spending Plan
On average, we make 35,000 decisions a day. How can we stay lucid when we make a purchase? The answer is: we can't.
Instead of overthinking if you should buy x or invest y, have a system that decides for you. Say good bye to budgeting, say hello to the Mindful Spending Plan. It's a system that will tell you what to spend on:
- Foundation (aka living costs)
- Future (aka retirement)
- Fun (aka guilt-free) Don't have a plan yet? Download the Mindful Spending Plan here.
Practice
Spend accordingly!
Find a system that works for you, such as a sync bank app connected to a budgeting app. With clear goals for each spending category, deciding whether to make a purchase or going out with friends has never been easier.
Do have you money in your 'fun' enveloppe? Yes? Go for it! No more overthinking, buyer's remorse, or shame. Build a system, make smarter decisions.
Persist
Repetition is key.
Now that we have the entire system in place, let's talk about discipline. Just like professional athletes, building new habits takes time. Studies say it can take from 18 to 254 days. But did you know that having an accountability partner increases your chances of success by 90%?
Book a non-negotiable monthly Money Date with yourself, a partner, a friend or a Coach to take your payday routine to the next level.
Want to learn more? Check out the Ultimate Guideline where I share pro tips to go the extra mile to help you implement your payday routine tailored for you.
Grow your financial confidence so that establishing a payday routine is easy peasy.
Sophie
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PS: Do you have a payday routine? If not, why not? And if you do, what has worked or not worked for you?
PSS: Stay tuned for the next newsletter where I'll reveal the magic of automation (the secret to make your payday routine work in the long run)!
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Read my latest article
"How To Ace Your Way To Financial Confidence"
