9 Simple Tips to Improve Your Finances
The financial aspect of life is commonly overlooked.
Yes, money can’t buy happiness, but it wouldn't be that easy to live happily without it either.
People have basic needs to meet and those require money.
This post is not saying that you should put money on top of your priority list, but rather on how to have a healthy financial life.
Love, Freedom, Purpose
What this article wants to say is that a healthy financial life will take away a lot of your stress when it comes to fulfilling your basic needs.
Love, Freedom, Purpose
What this article wants to say is that a healthy financial life will take away a lot of your stress when it comes to fulfilling your basic needs.
You don’t need a surplus of cash, and you don’t want to be short of it. You just like to have a sufficient amount that you and your loved ones need, right?
If you want to be super rich, then stop now because this article isn't for you.
If you want to live a meaningful life, a life of happiness and contentment, full of love, freedom, and purpose, then read on.
How to Improve Your Finances: Greed vs Wisdom
Too much money and lack of it both causes undue stress that can be detrimental to your overall health and wellness so you need to grow this part of your life as well.
Here are some tips on how to improve your finances:
1. Earn. Of course, you cannot have money if you don’t do anything to earn it. Some people have passive income but they did something, or set up something, to have it.
How to Improve Your Finances: Greed vs Wisdom
Too much money and lack of it both causes undue stress that can be detrimental to your overall health and wellness so you need to grow this part of your life as well.
Here are some tips on how to improve your finances:
1. Earn. Of course, you cannot have money if you don’t do anything to earn it. Some people have passive income but they did something, or set up something, to have it.
How much you earn depends on you. The point is you have to determine the income you need to be financially stable then organize your life to actually earn it.
2. Save. No matter how big is your income, you won’t achieve financial stability if you just spend all of it as soon as you earn it.
Without having an established personal savings system, your financial life is like a container with a hole at the bottom. You never really fill it up as money goes down the drain instantly as soon as it comes in.
Some people use an automated savings system so they don’t feel the weight of manually taking it away from their net income.
3. Create a budget and stick with it. Use the formula "Income minus Savings equals Expenses", rather than "Income minus Expenses equals Savings". In other words, pay yourself first because you are your most important asset.
4. As much as possible, stay away from debt. Or if you really have to, make sure you have a feasible plan on how to repay it and stick with the plan.
Debt is like a cancer that slowly eats your financial health when not handled properly, so stay away from it as much as possible. The only liability worth having is when starting a business or in real estate because they have the potential to earn.
5. Build an emergency fund. This is one of the most important financial moves you can ever do. With a large enough emergency fund, you can stay out of debt, maintain your budget, prevent late bill payments, and be virtually worry-free when it comes to your finances.
Start small, even just 5% of your income aside from savings will do at first. When you gain momentum, in time you will be surprised how quickly it grows.
6. Invest. After building a sufficient emergency fund, you can now use a portion of your savings to invest.
6. Invest. After building a sufficient emergency fund, you can now use a portion of your savings to invest.
Most financial advisers suggest that 25 percent of your total savings is a sensible amount to invest. Investing will make your money grow more rather than keeping it stagnant in a savings account. Although you still need savings, both liquid and not, to help prepare for the future.
7. Be consistent. Earn, save, and invest. Do this over and over again and you are guaranteed to become financially stable in due time.
8. Sometimes splurge. This is also important because a life of deprivation is not the most encouraging life. Sometimes you should treat yourself with expensive pleasures, too. But remember to still have a limit and enjoy every moment of your splurge.
In other words, don't just spend for the sake of spending. Enjoy and be in the moment!
9. Lastly, spend money on someone else. Happiness skyrockets when we spend money for other people.
7. Be consistent. Earn, save, and invest. Do this over and over again and you are guaranteed to become financially stable in due time.
8. Sometimes splurge. This is also important because a life of deprivation is not the most encouraging life. Sometimes you should treat yourself with expensive pleasures, too. But remember to still have a limit and enjoy every moment of your splurge.
In other words, don't just spend for the sake of spending. Enjoy and be in the moment!
9. Lastly, spend money on someone else. Happiness skyrockets when we spend money for other people.
It doesn’t have to be big purchases. A simple cup of coffee or paying for the bus fare of a friend every now and then actually feels very good to the giver more than to the receiver. Being generous has a way of improving our holistic life more than we can imagine.
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