Ecclesiastes 10:19, “…But Money answereth all things” is a popular saying amongst people of all classes. Well,this is very true to an extent as having enough money can help you live life the way you want.
A life of comfort, where you are not tied down to deadlines, an annoying colleague or a choleric boss.
A life of adventure that gives you time to travel, make new friends, have a great dinner in the best restaurants.
These 8 money tips will fasten your financial journey:
8 Money Tips :
1. Set Financial Goals
Goals help motivate and make things happen.
The essence of setting a goal is to achieve a result that one is attempting .
Now:
Ask yourself: How much do I want to worth in about one, five or ten years. Scribble it down, pin it on the wall and check your progress from time to time.
You should be ambitious about it. A goal that is not set doesn’t push anybody and when it doesn’t push us, there is no point in setting the goal in the first place.
Every successful person at a point in time decided for themselves what they want in life. They set small and big goals to push their dreams to come alive.
2. Create A Budget
A budget is an estimation highlighting the amount of money or resources earmarked for a particular activity, institution or time frame. In simple terms, it shows what you earn and how much you are to spend. With this knowledge, you can plan your future.
Creating a budget is #2 on our 8 money tips that can determine whether you live a debt free life or a debt full one.
3. Save More
How many percent of your salary do you save? how many percent of all your earninsg can you save?
I know a lot of people who give filmsy excuses like: I can’t save, my salary is too poor! or I can’t save, I have too many responsibilities.
But here’s the kicker:
The only way you can crawl out of your present financial dilemma is through saving. So begin to save!
Savings will make it possible for you to invest your money to grow new streams of income. Doing this will fatten your bank account balance aiding you to financial freedom.
Freedom in future is made possible through savings.
4. Invest More
Investing involves you to commit money or capital in the hope of financial gain. For the sake of simplicity, it means spending money, time or energy into something, especially for some benefit or purpose.
Money for investment does not come easy especially if the investment is a big one. Therefore, you have to be mindful in the type of investment you put it.
You have to do it right for it to actually happen. It will multiply your earnings and savings into multiple folds.
5. Diversify Your Income Stream
Any financial advisor or personnel will warn against putting all of your eggs in one basket. Why? because it is risky and it’s effects are usually bad. Depending on one source of income is not good for your health and financial status. That is why this is #5 on our 8 money tips
It gets worse:
If something happens to this source of income, you will have to go for some time without earning. Your survival becomes threatened and this can lead to depression.
That sorta situation makes you worry and “worry” is bad for your life and health.
The formula for growing more sources of income to your current income is simple: earn, save and invest.
You can decide to invest in real estate, shares or bonds or a side hustle you love doing. Make sure you understand the market for these investments.
The world is going digital and knowledge can be learn’t anywhere. Free resource materials on whichever form of investment you want to go into are present online. All that is needed to complete this formula is your time.
Once the business starts to grow, repeat the process to add more income to your already moving income stream.
6. Avoid Borrowing To Consume At All Cost
Now:
If you borrow to buy a car, own a gadget or to add to your collection of clothes, you are headed for thr rocks.
It gets worse:
If you borrow at a high-interest rate just to buy things that doesn’t yield any form of value.
When the interests on those loans start pilling up, it will clamp down on your personal finances.
My advice? Avoid borrowing for liabilities at all cost.
You might be wondering:
When should I borrow? only borrow when you want to buy an asset or finance a business.
7. Invest In Financial Education
Knowledge is power but financial knowledge equals to personal finance freedom. For you to be able to do something, you must first learn it. Nobody comes into this world a genius; you must first learn.
We all have learned what we know today at some point. Even the most wealthy of us all. Invest time and money to learn the things you want and need to know about mony and it’s principles.
Buy audio books, books, take courses(online and offline) , go to seminars; whichever suits you, do it.
Learn as much as you can about finance; stock market, real estate, savings, investment, money principles to help you achieve financial freedom. Your future self will thank you greatly for it.
8. Carry Out A Fianance Health Check
It’s important we know where you are with your finances regardless of our level of busyness.
You need to stop at some point and ask yourself the following questions:
Am I saving enough? or it’s jut barely enough?
Am I saving enough for my future?
Are my children, relations and wife secured in case od incasity?
Am I spending my money correctly?
Your answer to these questions will give you a clear picture of where you stand with your finances. If it’s all good, be happy, but if it’s not, then begin fixing it.
Hope you enjoyed our 8 money tips ?
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excellent post.Never knew this, thanks for letting me know.
You welcome