Starting a financial glow-up

Many people dream of financial peace, but don't know where to begin. A financial glow-up isn't just about earning more; it's primarily about managing your money more effectively. By budgeting more consciously, saving wisely, and potentially tapping into additional sources of income, you can gradually move closer to financial freedom. This article offers practical tips for getting a handle on your money and laying a solid foundation for a stable financial future.

1. Understanding finances: the first step

The first and most important step toward a financial glow-up is gaining insight into your current financial situation. Without this insight, money often continues to leak unknowingly. By listing all income and expenses, it quickly becomes clear where improvements can be made. This can easily be done with a budget planner , a notebook, an Excel sheet, or an app.

A handy tip for reducing impulse spending is the 30-day rule : when a purchase isn't necessary, it can be helpful to wait 30 days before making the decision. Often, the need disappears after a month.

2. Budgeting like a pro

Creating a budget is essential for achieving financial goals. It ensures you don't spend more than you earn and helps you achieve your savings goals faster. There are several ways to create a budget:

• 50/30/20 rule :

  • 50% for necessary costs (rent, groceries, fixed costs).
  • 30% for personal expenses (entertainment, shopping).
  • 20% for savings and paying off debts.

• Envelope method :
  A physical way to make budgeting tangible. Cash is divided into envelopes for different expenditures. If an envelope is empty, the budget for that category is used up.

• Zero-based budget :
  With this method, every euro that comes in is allocated to a specific purpose. This way, no money remains "floating," and there is complete control over spending.

Choose a method that suits your personal situation and make budgeting part of your routine.

3. Save smartly

Saving doesn't have to mean losing the fun. On the contrary, with a few smart adjustments, significant savings can be achieved without compromising quality of life.

• Take a critical look at fixed costs :
  Subscriptions that are no longer used can be canceled. Think of streaming services, sports subscriptions, and magazines. Energy contracts and insurance policies can also often be made more affordable by comparing them annually.

• Smart grocery shopping :
  Cooking from a weekly menu and using a shopping list helps prevent impulse buys. Moreover, store brands often offer the same quality as name brands, but at a lower price.

• Find free or cheap alternatives :
  Movies and series are sometimes available for free through the library or other online platforms. In addition, dining out can occasionally be replaced by a cozy meal with friends at home.

• Cashback and discount apps :
  There are several apps like Scoupy and Woolsocks that allow you to earn cash back on purchases. These small amounts can make a significant difference annually.

• Embracing Minimalism :
  Buying less and being more mindful with money not only leads to financial savings, but also to less unnecessary stuff in the house.

4. Extra income: make money work for you

Besides saving, extra income can play a significant role in a financial glow-up. This doesn't always have to come from a second job, but can also be achieved through creative and clever methods.

• Side hustles and freelancing :
  There are countless ways to earn extra money alongside a regular job. Think of selling handmade products on Etsy, freelance work on Fiverr, or offering digital services like graphic design and copywriting.

• Asking for a salary increase :
  Many people rarely negotiate their salary, even though there are often more possibilities than you might think. Researching industry-standard salaries beforehand and preparing sound arguments for a raise increases your chances of success.

• Generate passive income :
  Investing in ETFs, dividend stocks, or real estate can generate additional income in the long run without requiring constant active involvement. This requires an initial investment of time and knowledge, but can contribute to financial freedom in the long run.

5. Saving and Investing: Build a Financially Strong Future

Saving is a key pillar of a healthy financial strategy. Building an emergency fund ensures that unexpected expenses don't cause financial stress.

• Building an emergency fund :
  A buffer of three to six months of fixed costs is recommended to cover unforeseen expenses.

• Save smart with challenges :
  Saving can be made more fun and easier by following a challenge, such as the 52-week savings challenge or the no-spend month .

• Investing for the long term :
  Investing in ETFs or dividend stocks can help you grow your wealth over the long term. This carries risks, so it's important to do thorough research and start small.

6. Mindset and behavioral change

A healthy financial mindset is just as important as the practical steps. Old habits and limiting beliefs often hold people back from achieving financial growth.

• Breaking through money blocks :
  Beliefs like "money is difficult" or "I'm just bad with money" can negatively impact how people handle finances. By consciously addressing these and developing a more positive outlook on money, better financial decisions can be made.

• See money as a means, not an end :
  Money itself isn't the goal, but a means to create freedom, peace, and happiness. By consciously choosing how to spend your money, achieving financial goals becomes easier.

• Looking for inspiration :
  There are countless books, podcasts, and blogs about financial growth and investing. Here are a few recommendations:

  • 📖 Rich Dad Poor Dad – Robert Kiyosaki
  • 🎧 Podcast: How to Money
  • 📘 The Psychology of Money – Morgan Housel

7. Conclusion

A financial glow-up starts with gaining insight into your current situation, budgeting more consciously, and saving and investing more intelligently. The process isn't a sprint, but a marathon. Small steps can make a big difference in the long run.

With the right mindset and strategies, financial freedom can become a reality. Take the first step today: create a budget, start a savings account, or explore an additional income stream. The future begins now! 🚀