Well, since Rachel overcame her money shame and self worth, Rachel was able to pay $20,000 of debt and loans off, however she still wasn’t saving anything.
There still wasn’t enough money come in.
And that’s when I knew Rachel had another money issue we had to work with.
Your Money Issue Number Two That’s Stopping You From Living The RICH Life:
Your Money Practices.
Once Rachel started to see where her money stories were holding her back in her life, she was able to clear them and get on with the practical stuff.
You see, Rachel’s passion is making sure people are taken care of in the workplace, not finance. She doesn’t get off high vibing doing the numbers like a self-confessed finance geek like me.
Instead, looking at the numbers made Rachel’s head hurt.
So we got to work educating Rachel on cashflow and money planning, and the difference between budgeting and actual cash flowing in and out.
I wanted to give her a financial education so when she looked at her money, her head didn’t explode.
I walked her through the best ways to organise her bank accounts and where to make the biggest dents into her debt – which lead her to paying all of them off quickly.
I showed her the importance of tracking her money and being conscious of where and what she was spending her money on, from an awareness point of view, and not from a strict-budget-no-life budget point of view – because we don’t do budgets around here.
And once she started tracking her money, she started seeing where she was wasting her money on things that she didn’t even need or want.
This was how Rachel started her savings account, and easily saved $7,000.
The Lesson For You:
You must learn how to manage your money at the practical level if you want to live the RICH life, because when you do, you have more money.
But, that wasn’t enough to have Rach living the RICH Life.
Sure, she paid off $20,000 in debt AND she saved $7,000, but what did she do to finally find the money to complete her kitchen renovations and book her long-awaited trip to NZ?