Let me clue you in on a little secret, average middle-class people don’t make enough money to have a life of luxury and comfort. So how are they able to afford that new flat-screen TV or have another kid? IPIC is how: Inspect, Put up, Invest, and Climb.
INSPECT your finances
- Don’t neglect your financials because you don’t want to realize how poor you really are or see how much you spend at Starbucks in a month.
- Go to Excel or Google Sheets and create your own financial sheet that you will fill out weekly/monthly. (See Image)
- Keep track of your income, savings, spendings and recurring payments.
- You can play around to figure out what kind of financial sheet works best for you.
- Monthly expenses, things that are recurring like subscriptions and bills. This would be where you also put “guesstimates”. For example, $150 for gas. It’s not an accurate amount of what you will spend that month on gas, but you know you will spend around that amount. It will help you wrap your head around how much money you’re going to need this month.
- Weekly expenses, this is where you would put specifically how much you spent that week and on what.
- Income column, list the source you got it from, how much you received, and how much of it you put into savings.
- Show how much money you have left over from that week’s income.
- Your goal for your checking account.
- How much you saved weekly in your checking, normally the same as how much you saved from that week’s income.
- The monthly projection section and the checking account amount both need extensive formulas entered into the sheet in order to give you the correct numbers.
- Contact me and request a “how to use spreadsheets” article if you need assistance with the math formulas.
PUT UP your money
- Here’s another secret for you: a little money goes a long way.
- One of the most efficient ways to save money is to convince yourself that you are broke.
- Pretend your checking account is your savings account. And that your savings account doesn’t exist.
- Any leftover money from your last paycheck–once you receive your next one–is now forever lost to your “savings” account. And only access your “savings” account in emergencies.
- Even though you’re pretending the money in your real savings account doesn’t exist, you still need to contribute to it.
- Ideally you need at least three places of saving.
- Your savings account with your current bank, reserved for a weekly small percentage of your paycheck.
- A high yield savings account with a credit union with the largest amount you can afford to put in it.
- Finally, a cash jar. Any spare coins and cash you have go in here. You do not touch this jar, you let it cumulate over time. Any physical money you get, you put in this jar.
- Ideally you need at least three places of saving.
- All of this money will build up and give you multiple sources of emergency money.
INVEST your money
- Financial advisors. They can cost a pretty penny, but if you need extra assistance understanding how to invest then having one can be worth it.
- If a financial investor is too much of an expense, try buying a few books on investing. There are plenty out there that offer good advice on how to invest and make money.
- There is no one correct way to invest, just make sure to do your research and not take big risks.
CLIMB to the top
- The hardest part of your journey is the climb. Making that money while balancing your personal life–and education if you’re a student.
- If you’re not a student, you need a full time job. 35-40 hours a week, don’t stop searching until you’ve found that job that gives you full hours and average pay. Get that certification, go the extra mile, spruce up that resume. Anything to get you where you need to be.
- If you are a student, part time is less stressful and possibly necessary. This is where you would pick up gigs. You’re a student, take notes and sell them to sites like Nexus Notes, One Class, or Docmerit. Pick up labor gigs like mowing lawns. Become a doordasher. Do remote gigs. Anything to make you extra cash.
- The most important part of your climb is to take care of yourself. You are the cogs in the machine of your life. If you stop turning, everything will break. Give yourself at least one day a week where you don’t do much. If you do end up working, make it enjoyable. Do routines that make you feel refreshed. Listen to your favorite songs. Remeber, your mental health is more important, always.
Remember to IPIC, and good luck on your journey of wealth and prosperity. Your goal is to thrive, not just survive.