The start of a new year often sets the financial tone for the months ahead. It’s common to see many people ambitiously include debt management or saving plans in their New Year’s resolutions. The sad truth, however, is that despite the best of intentions, financial goals often take a backseat because they aren’t always realistic or achievable. Often, we need to return to basics and remember that financial success begins with the mindset. Here are three simple and practical tips to help you get started on the right track.
1. Live within your means:
Keep your standard of living below what your earnings can accommodate. As you advance in your career and gain more experience, your pay should increase. Instead of using this extra income (from your pay increase) to live a more luxurious lifestyle, the best move is to use the money toward reducing debt or adding to your savings. If the cost of your lifestyle lags your income growth, you will always have excess cash flow that can be put toward financial goals or an unexpected financial emergency.
Ouch! It’s painful to watch people trying to “live it up” far beyond their means. Borrowed money should only be used when the potential gain outweighs the cost of borrowing. This could mean investing in yourself—whether for education, starting a business, or purchasing a home. In these cases, borrowing can provide the leverage you need to reach your financial goals faster.
3. Invest in yourself:
Look at yourself as a financial asset. Investing in yourself will pay off in the long run. Your skills, knowledge, and experience are the biggest assets you have. Increase your value by continually upgrading your skills and knowledge and by making smart career choices. Though this investment often starts with going to college or a trade school, keeping skills up to date and learning new ones that are in high demand can help make you a more attractive and higher-paid part of the workforce. Investing in yourself should continue over the course of your lifetime.
Apart from these, there are still other means through which one can achieve financial freedom. The three tips listed above are a few, which when put into practice, will allow you to get to the point where you will be able to take care of your bills and other expenses for yourself and may be that of your family’s.
There is an amazing article on achieving Financial Success in The HotJem Magazine. Order your copy now while supplies last.
This article was originally published on the The HotJem Magazine’s Editor-in-Chief’s Facebook page and has been edited for clarity and purpose of publication on our website.
