The new year is fast approaching, and I can feel you are worried about your funds. Money isn’t something you should be overly worried about. This is because if you put your mind to learning about your finances, you’ll notice great changes in all areas of your life. You can comfortably spend on anything at any time because you know with utmost precision the value of every currency leaving your fingers.
Nevertheless, it’s the new year we are talking about. Everyone knows after the celebration, most people have to go back to scratch with their funds. They might have spent a little too much during the x-mas and new year celebration.
Regardless of how much you might have spent, you have nothing to worry about, we can work around your remaining funds, and move you to financial success.
How much money do you have?
Without a doubt, the amount you have doesn’t matter. By now, you should understand that the value of money isn’t in the amount you have, but in the amount you keep. Do you dread saving money? You shouldn’t. It is the first of all the steps we will be disserting in this article.
Save your funds now, enjoy later
We know the adage that says, “a penny saved is a penny earned” very well. It might be as old as time, but it is still very effective today. Whenever you leave behind a certain amount of money, you have something to fall back upon during moments of crisis. So, save now, and enjoy later. Always, keep a percentage of your earned income, keep adding to it, and watch it grow.
How many percent is yours to keep?
The comfortable amount is 10%, but, you can choose to go overboard with it. Obviously, the ideal action is to make sure you save something. By saving your funds, you will be able to jump on any investment opportunity because you have spare cash. Again, you can comfortably leave your job to pursue your passion if you have savings to back up your decisions.
Budget, budget, budget
There is nothing that beats the importance of budgeting. Indeed, you have to learn. When you do, you will understand how much funds is enough for you to live by. From there, you can make spending adjustments to suit your savings goals.
With budgets, you can tell where your money goes. Moreover, you ought to have a writing pad that you can make daily or weekly entries around your spendings. When you make a purchase, you pen it down, by the end of the week or month, you sit back and analyze which part of your life is taking the most money from your pocket. If it’s not worth it, you find ways to reduce it.
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It could be frequent eating out, instead of cooking your meals. Also, it could be transportation or fuel for your car. Spotting these expenses will help you make effective spending decisions.
The most important thing about a budget is that when you do it, you will be able to channel the remaining funds to your savings account. Making it wait to make more money for you.
Start investing your funds today
Don’t wait. Waiting is bad for your financial health. If you haven’t heard yet, know that the reason you should pursue money should be for the freedom it provides. Money gives you the freedom to leave a toxic job. Secondly, it gives you the freedom to start your own business. Thirdly, it gives you the freedom to travel the world. Fourthly, it gives you the freedom to contribute to your favorite Charity Organization. Fifth, it gives you the freedom to spend more time with your family. Particularly, money brings freedom.
For this reason, you should not just save, learn to invest too. A lot of times, you will hear that you can’t get rich, through saving, and it’s true. You need a higher magnitude of gravity to propel your money to a different level. And the one thing that will help you achieve this is investments.
Look into the different investment options and learn about the ones you like. It could be anything, the Stock Market, S&P 500, real estate, a new business, IRS, Retirement Account, investment accounts, cryptocurrency, etc. Put your funds to work, and watch the power of compound interest propel you to wealth.