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Everyone has a list!

By October 24, 2018November 7th, 2019No Comments
  • 27 ways to lose weight

  • 42 ways to look younger

  • 3 things to do to become wealthy

At Surmount money management we set you on a journey. At this point in time neither of us have any idea how many steps it’s going to take.

Generally, the rule is to take the first step and then take the next step. Sometimes it will be 2 steps forward and 1 step back but that is the nature of this journey.

Our definition of money.

I find most sensible to look at the note, the coin or the bank statement represent stored time.

If you earn $20 an hour and have $100 in your pocket, then in its simplest form that’s 5 hours of your work. Yes, if someone earns $100 an hour then it is 1 hour of their work.

Flip this around.

If you put $100 on your credit card, then you are basically promising “someone” to work for five hours to replace the $100 that you just borrowed from your credit card provider.

So, let’s deal with our next step.

Step 1 – Using “my time” as a context, use the money management app to work out how many stored hours you own, you owe or you could spend on a night out.

But please do not panic, if you need help you can ask Surmount for help or Surmount can send you some simple hints. Remember we are not dealing with a bad haircut here, it’ll take a time to get things right.

Step 2 – if you go through the exercise of looking at your history you will see the future more clearly. Why? Because if you grab 2 cappuccinos every day at work you would have spent $1600 by the end of the year – that’s why! I’m not saying don’t drink cappuccinos. I am saying look at your financial history and it will help you predict your financial future.

Maybe that Ferrari can wait until I’ve paid off the pushbike.

Feel free to imagine. A $200,000 Ferrari at $20 per hour means that you only have to work for 6.25 years to own it. Then add a few extra hours to register and put petrol in it.

Basically, you need to look at your world, your needs and what you see as being important to you.

Step 3 – congratulations you are already working out the framework of your financial plan.

As you advance your way through the money management app you’ll start to ask questions about;

  • something you’d really like to do – a goal

  • an amount should like to have in your back pocket just in case – your safety net

  • you know what bills you gotta pay – living expenses

  • you know what the bank wants off you every month – debt repayment

Step 4 – you know how to put together a jigsaw? This one’s a financial jigsaw but still a jigsaw!

Remember, Surmount is here ready to assist, if you need help. Where do you start? Look at your expenditure history and GYST! (Get Your Stuff Together).

Step 5 – what part of step 3 do you want to get started on first.

Forget what you want at this stage and take action what you need to do first.

Human beings are very predictable when it comes to trying to do something they don’t want to do. Human beings generally find something they would like to do, in this case, it may involve spending money. So be honest and identify what is urgent.

Step 6 – now that you have your first priority let’s deal with it!

Step 7 – let’s deal with the next priority next……