You’ve probably gotten lots of advice about your finances from different people, but all that different financial advice can be conflicting – and even a bit demotivating.
Here are some successful people and advice on how to be like them and which financial tips they implemented to get to where they are today.
We’ve gathered some of the best financial advice from top financial gurus out there who made use of these tips to shape their lives and finances.
Don’t Spend Everything You Make
Some of the best advice you can get is to spend below your earnings; income levels differ from one person to another, but we’d all like to live an affluent lifestyle.
But doing that means you’ll likely amass debt and end up with no savings to fall back on. Instead, making saving your priority and also try to invest to prepare for the future.
Saving is a sure way to attain financial freedom. Driving the latest cars or wearing the latest fashion? Not so much…
Savings come in handy when there’s an emergency or unexpected crisis, but they also provide you a solid footing for the future.
Try Sticking to Cash
It’s great to walk around with a credit card and or to invest, but the best decision you can make is always to use cash to pay for purchases.
When you use your credit card, you might be tempted to overspend or buy unnecessary things. When you commit to using cash, you can only buy what your current finances allow. Some people end up buying cars on credit; make sure you pay with cash and if you don’t have cash, then stay away from it. This advice will save you from overspending and unmitigated troubles in the future.
Set up an Automated Transfer
If you want to take control, then give up control. Setting up an automatic transfer from your bank to your savings will keep you from having access – and then rethinking – the amount to save or to save at all. It also helps you to save consistently and with minimal effort. Several apps can help you take care of this automated saving process. Check them out, or make an arrangement with your bank.
Save While You Can: Now
Most people make the mistake of thinking they should start saving when they’re all settled down or much older; this is a mistake that can be avoided now. It is best to save now that you’re young and without responsibilities as they are bound to compound as you grow older. Most people are blessed with the gift of time but end up misusing it; don’t wait till you get an increase or more money; save now while you can. Piggy bank is the best place to start your saving culture.
Don’t Spend More When You Get A Raise
If you’re lucky enough to get a raise at work, it doesn’t mean you should increase your spending habit. It only means that your savings grow; many people see a raise as a reason to spend more on unnecessary things. However, when you’re looking to save up and attain financial freedom, it is best to save all the extra cash you’re getting from the raise instead of raising the standard of living.
Make Your Money Work For You
The best financial advice anyone can get is making their money work for them. Too many people are stuck in this never-ending cycle of simply spending their money or putting it into a bank. However, you can change the pattern and invest your money in a long-term venture. This ensures that your money starts making more money for you instead of just sitting in a bank somewhere or being spent on bill. It’s still important to have a stash you can easily access during emergencies but you should keep more of your money in an investment scheme.
Prepare for Rainy Days Ahead
The future is highly uncertain. But there are bound to be rainy days ahead. Nothing stays the same for a long time and you want to be prepared when the change comes; this is why saving for rainy days is very important. You might encounter some health challenges, car repairs, home repairs and the likes in the future and you would sleep better knowing that there’s money somewhere to sufficiently take care of any unexpected crises that might pop up.
You can even start saving for rainy days by saving a dollar or 5 dollars every day. That might seem like little at first but at the end of a year, you’ll be amazed at how much money you’ve saved up for yourself.
Check Out Your Credit Report Frequently
Sometimes, when you abandon your credit report, there might be errors abounding there that you’re unaware of. Monthly, take a look at your credit report and how good you are. If there are any faults or errors, contact your bank and have it fixed as soon as possible. Sometimes banks make errors, so you don’t want your finances entirely in their hands without keeping an eye on your scores.
Invest in a Portfolio for Yourself
Sometimes, all you need to get yourself out there and open doors of opportunity is a simple portfolio. Please take out a percentage of your paycheck and invest it in building a portfolio for yourself. A portfolio makes you look professional and also puts you out in the market for better opportunities to find you.
Saving Is A Process
There is no clear-cut way to financial freedom, and no one has all the keys to achieving independence. If you follow this financial advice provided above, you’re bound to see a difference in your finances as time goes on.