The Buckets And Spades Approach To Wealth
Two years ago, I had the crazy idea of building a beautiful barn-style house in an unloved and unused part of my garden. Today it is a reality. After nine long months, the project is nearing completion.
I've been involved in several property-related projects over the years, including refurbishments and remodeling, but building an entire house is another ballgame entirely. I had to research, plan, negotiate and oversee to ensure the project went smoothly and stayed on time and within budget.
I'll share my self-build experience in a full-length feature that I'm writing for the Financial Times, which will appear in the weekend edition in early April. You can watch how the project progressed on my YouTube channel under the Self-Build playlist.
Reflecting on my self-build experience, I can see many analogies and parallels to personal finance and building financial wealth for security and choice.
Do You Know Enough
I had to read books, watch YouTube videos, scour the internet and speak to builders and architects to learn the basics of a self-build, so I was aware of both what I didn't know, the key risks to watch out for and the basic principles of construction.
When it comes to your money, you need to take some time to learn what works, identify your present reality and work out your priorities. Being good with money isn't rocket science, but it does take time and effort.
Check out my 5-minute personal finance explainer series on YouTube here.
Is There a Hole in Your Hose or Bucket?
We had to replace several buckets during the house build and at least one hose because they developed holes. That's inevitable on a busy construction site. A bucket that can't hold water or a hose that has sprung multiple leaks wastes water and makes the site messy.
How many leaks have you got in your spending?
Subscriptions you don't use.
A broadband or energy deal that is uncompetitive.
A mortgage rate that isn't the best.
Insurance that you've let renew without checking alternatives.
Cash saving earning no interest.
We all suffer leaks with our finances. Money wasted is money you can't use to reduce debt or build wealth. You have to be vigilant, organised and disciplined about plugging all your financial leaks.
Do You Need a Bigger Shovel?
Using a spade to move ballast or topsoil is a lot easier than using your hands. And using a shovel is a lot easier than using a spade.
Sometimes, when you can't cut living costs any further, the only thing you can do is to increase your income. It's a lot easier to get ahead financially and build wealth with a higher income than a smaller one.
“Sometimes, when you can't cut living costs any further, the only thing you can do is to increase your income.” Tweet This
Can you learn a new skill to increase your value and employability? More info here.
Can you do overtime (without a detrimental effect on your health)?
Could you negotiate a promotion or salary raise? More info here.
Do you need to change your career or job to get what you are worth and need? More info here.
Can you start a side hustle or take a second job?
Are you getting all the state benefits to which you are entitled? Use this free tool to check.
Take The First Small Step To Better
I've learned a lot from my self-build experience, and I can now apply that knowledge and skills to future property projects. It seemed a big project that could easily have overwhelmed me and stopped me from even starting.
To improve your financial situation, you need to take small steps to raise your financial awareness and knowledge, fix your spending leaks and get a bigger income shovel.
Warm regards,
Jason