Welcome back to Hugo’s Habits! 🚀 

This week’s habit will be focusing on WEALTH.

(Estimated read time: 2 minutes)

The first thing that makes budgeting easier is having a higher income.

Every week Ciaran interviews people who have started successful businesses that started as side hustles.

Every article is full of great ideas that anyone can implement to make some cash on the side.

I highly recommend it, one of my favourite newsletters! 🚀 

Click below to check it out. 👇️ 

💭 This Week’s Thoughts.

The amount of people, especially around my age, who are completely financially illiterate is fascinating to me.

It is a fair point that we don’t learn any personal finance at school, except maybe stockpiling cash in a savings account.

4% on £100 a month (even this is optimistic).

£40 quid a year is far from life-changing.

Fair money doesn’t buy happiness, I agree. But money buys freedom. 

And in my opinion, freedom and complete autonomy in your life will bring happiness.

So,

If you're reading this and you're under 35 years old, please do everything you can to financially educate yourself as much as possible.

Just learn:

1. Index Fund Investing

2. The Power of Compound Interest

3. How and Why to Build an Emergency Fund.

If you are educated in the above topics, you are in good stead in terms of personal finance.

I learned all this from a website called Investopedia. Click the link 🔗 ⬅️ 

📊 Building a Bulletproof Budget.

The 50/30/20 Rule

As soon as that monthly pay hits your bank, invest/save 20%.

This 20% can be saved as cash or into investments. Simple index funds, ETFs, individual stocks, bitcoin whatever. Just save a minimum of 20% of your income.

The most powerful tool in investing is consistency.

The 50% of your income should be on your needs/fixed costs.

• Mortgage/rent

• Car payments

• Groceries

• Utilities

• Transport

• Health costs

These costs that come every month should hopefully be 50% or under your monthly income.

If you are on a lower income, comb through your bills to see where you can save money.

i.e. Reduce high-speed internet, work out at home instead of gym membership, unused subscriptions, etc.

The main mistake people make is dipping into the 20% for investments to help cover the fixed costs.

Unfortunately, you just have to cut spending. 

The absolute best way to have more money is to spend less. 

Again, unfortunately.

As you can probably guess, the 30% is for guilt-free spending.

Get that pumpkin spice latte, or that night on the town, or that pair of shoes.

Whatever it is, when you budget correctly that spending is truly guilt-free and massively reduces stress.

Adopt these financial habits and over time, you’ll get a reign on your financial life.

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Thank you! 😄 

That’s all for this week!

Any questions? 💭 🤔 

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This newsletter is designed for you to introduce habits to allow every reader to be the happiest, healthiest, and wealthiest version of themselves! 

See you next week,

Hugo.

P.S. Take some time to check out the best links in the section below.

Some amazing reading in there! 👇️ 

Best Links This Week ⚡️ 

(Click “Link” to open the entire article. 😉 )