April 22, 2024
Finance

I’m a finance coach after getting myself out of £60k, here’s the 5 money rules I swear by & why you need to save first


A WOMAN who has become a financial counsellor after getting herself out of £60,000 of debt in just a few years has revealed her top money tips.

Charlotte Darr, from the US, swore these rules absolutely changed her life and relationship with money.

Charlotte Darr shared five money rules that got her out of debt and gain control over her financesCredit: tiktok/@savelivethrive
Saving for an emergency fund was the first stepCredit: tiktok/@savelivethrive

She said: “Five money rules I live by as a financial counsellor that absolutely changed my financial life when I started living by them and I wish someone had taught me sooner and that’s the main reason why I do what I do today.”

These rules will not only help you get more money but also keep a hold of it she says after she got rid of $78,511 worth of debt in just a few years.

“The top five money rules I live by,” she captioned the clip on social media.

SAVING FOR A RAINY DAY

The first tip Charlotte had was to make sure you always had an emergency fund available.

The money expert added: “It is not a matter of if a negative financial event is gonna happen, it is a matter of when.”

She said it was important to set up some savings for this purpose so that you can pay for them in cash rather than on a credit card which would lead you further into debt if you can’t pay it off in time.

It’s a good idea to do this before starting to pay off debt otherwise you can end up in the same cycle.

PLAN YOUR SPENDING

Another hot tip from Charlotte was to make sure you have a spending plan for the month and stick to a budget.

I’m a single, stay-at-home mum and I make £1.5k a month from home – all you need is a phone and here’s how to get started

“I used to hate budgeting but one day I realised that making a budget was basically me telling my money where I wanted it to go and taking back control over what my money was doing,” the money whizz said.

BAD CREDIT

Next, she emphasised the importance of not relying on credit cards as she explained the interest rates could leave you struggling.

Charlotte explained: “I was stuck in the credit card debt cycle for so freaking long and now I never want to get back into it because it really kept me tied back to my past financial decisions and really prevented me to work towards my financial future.'”

INVEST WISELY

Investing your money was another top tip off the money expert.

“Start investing as early as possible so that compound interest has more time to do its magic and make your money work harder for you,” she added.

WORKING HARD

Lastly, Charlotte recommended looking for a side hustle to help boost your income – especially if you need to pay off debt quickly.

She said: “A lot of times, especially as women, we have just been told to focus on budgeting, couponing, and saving money, but we can only cut back on expenses up to a certain point.”

“But there is no limit on how much you can increase your income. I used to be a music teacher and I didn’t make a lot of money, but my side hustles made it possible to make my financial goals a reality.”

The clip went viral over on her her TikTok account @savelivethrive and people flocked to the comments to thank her for the easy money advice.

Investing: know the risks

INVESTING is a risky business.

It’s not a guaranteed way to make money. You cash can always go up as well as down.

Make sure you know the risks and can afford to lose the money.

Before investing you should check the Financial Conduct Authority’s register and check its list of firms to avoid.

One person wrote: “Such great advice.”

Another commented: “Love this!”

“Thank you for sharing,” penned a third.

Meanwhile a fourth asked: “What were the side hustles?”

Charlotte, who once worked as a school teacher, replied: “I tutored, taught private lessons, furniture flipped—basically whatever I could think of that aligned with my skill sets and the things I enjoyed.”

“Great information,” claimed a fifth.

Someone else added: “The emergency fund is non-negotiable, I agree!”

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