If you're one of the girlies that see something that they like on Tick Tock and immediately impulse buys it, go ahead and put your hand up for me. You're proud of yourself, does it make you feel good? Are you even wearing that Soul de Janeiro perfume that you bought off Amazon, or is it just collecting dust on your shelf because it smells like a car air freshener. I feel like most of us assume that if we suddenly got like a million dollars out of nowhere, all of our problems will be solved. But the more I'm getting into Finance, the more I'm learning that's definitely not the case. This is so crazy to me because I recently learned that over 75% of people that win the lottery are broke within the next five years. I feel like it's easy for all of us to sit there and say like, "Oh, that could never be me," but a lot of us were never actually taught how to manage our money. So if you think about it, we never learned money management or anything in school. Our parents are probably not the best at managing money, and money has just never been like a topic of discussion.
But today I actually want to talk about it. I feel like this isn't one of my typical videos because I get them in the finance space and I'm good at making money. But recently I found out I'm not the best at keeping money, and so I'm not going to sit here and act like I'm this financial Guru and that I take all of my own advice because I'm only human. And I feel like we all make dumb spending decisions sometimes. However, making these dumb decisions will keep you broke and living paycheck to paycheck no matter how much money you make. So if you want to avoid that and you actually want to be able to enjoy the money that you're making and just start unloading some of that debt and some of that money stress that you might have right now, then this is definitely the video for you because I'm gonna be going over all of the mistakes that I was making very recently and how I managed to change that in a few months. I know for a fact a lot of you are still making these mistakes right now, and it's okay. You weren't aware of it, but this is a video that's going to make you aware so you have to take action and make some changes in your life because living paycheck to paycheck is not what we would put on this planet to do. We were here to enjoy live life, eat good food, and travel, okay. I guarantee that if you follow even just like two of these hacks that I mentioned in today's video, you're gonna see a huge difference in your finances and you're going to be running back to this video thanking me. I can actually guarantee it.
And now, my final account, which is my bowler account. It's my absolute favorite. Twenty percent of my income gets transferred into this account, and this is the money that I can spend on whatever I want. So I could go off and buy a PS5, which is what I did recently with my bowler account. I could go on a shopping spree, or I could order Uber Eats until all of that money is wiped out. Whatever I decide to do with that money is fully my business and my business only. Now, for this account, I personally recommend that you opt for an account that offers cashback. So you're basically making some money back every time you make a purchase.
So right now, I know that a lot of you watching this are probably experiencing like 80% of your money going back into bills and living expenses. So if that's the case, I strongly advise you to either up your income or lower your expenses. So to lower your expenses, you might need to move to a smaller apartment, or you might need to find cheaper deals for like your phone contracts and stuff like that, or even canceling subscriptions that you don't need. Because trust me, if you take a good look, there's going to be so many that you probably even forgot about. And of course, to up your income, you can actually get a higher paying job or of course get a side hustle. Now, before you try and go off and be like, "Oh my gosh, you're so out of touch," I had to actually do all of these things when I lost my job back in 2021. So because my income had been cut, I had to move to a smaller apartment, try and negotiate cheaper deals on all of my bills and expenses, and on top of that, I started a side hustle.
And another crazy thing that I wanted to mention because maybe some of you haven't even noticed this, maybe some of you don't know that companies do this. I literally had to find out the hard way that these companies would literally increase my interest rates if I was in debt. Like, if they saw that I was in debt, they would literally increase the interest rate to put me in even more debt. Trust me when I say, you need to get out of that cycle ASAP. And also, by the way, this also applies to like the buy now pay later scheme, like Clearpay or the Pay Planners if you're in the UK. Obviously, these companies don't actually charge interest, so you think, "Yeah, I can just spend whatever I want on here and it's fine." And this is not fine at all because at the end of the day, you probably didn't read the fine print, like what I did. And luckily, I didn't put myself in debt with these companies and I didn't miss any payments.
Q: What is the importance of managing money effectively?
A: Managing money effectively is important as it helps individuals avoid living paycheck to paycheck, reduce debt, and achieve financial goals.
Q: How can impulse buying impact money management?
A: Impulse buying can lead to wasteful spending, accumulation of items that are not needed, and financial stress. It is important to practice mindful spending.
Q: What are some strategies to improve financial management?
A: Some strategies to improve financial management include setting a budget, tracking expenses, saving a portion of income, investing wisely, and avoiding unnecessary debt.
Q: How can individuals reduce credit card debt and avoid high interest rates?
A: To reduce credit card debt and avoid high interest rates, individuals should prioritize paying off outstanding balances, avoid making only minimum payments, negotiate lower interest rates with credit card companies, and consider debt consolidation options.
Q: What impact can consumer behavior have on financial well-being?
A: Consumer behavior, such as overspending, falling into the trap of buy now pay later schemes, and failing to read terms and conditions, can lead to increased debt, financial insecurity, and difficulty in achieving long-term financial goals.
