The right financial advice will get you closer to achieving your financial goals. One of the most important ways to get it right with money is following the proper financial education. Today, we shall be looking at the best money advice you need to consider regarding finances. Please ensure you read it till the end and learn how to manage your money. Instead of depending on random advice from friends, you should consider taking charge of your future at an early age. Below is the list of the best financial advice that you can find.
Understand that money is a game of numbers
Money is a numbers game; you need to be ready to play and win. Before you begin to think of investing and building wealth, you should first focus on getting the basics right. The road to financial success should start with recognising your sources of income and your overall net worth (this is how much money you have in your name). If you don’t figure out all the essential things early, the chances are high that you will get lost in the journey without going far. Study your income, be sure of your exact take-home amount (after tax deduction), and have a budget of what you plan to do with it.
Focus on increasing your income
One of the best ways to increase your income is having a side hustle. While working in a company, don’t forget to work towards building a future that you dreamt of. Everyone has a hidden talent; we all have something that we can do better and effortlessly. Most people have something they are passionate about, and they can’t wait to start building a life around it. Here is the good news, you can turn your passion into a profitable business. You could also consider offering your service to friends, family and colleagues for a suitable price. If you are talented, be creative and take your business online.
Don’t spend money that you don’t have
It is never okay to spend money that you don’t have. The attitude of living above one’s means usually leads to debt. Going into debt is never worth the stress. That is why I believe in the common phrase “live below your means”. Next time, when you are thinking of pulling out your wallet to pay for an item, you should always have a re-think. If you can’t afford it, there is nothing wrong in saying so. If you have the habit of spending more than you have, one of the easiest ways to stop is by asking yourself, “Is this item something I need”? “can I afford it without being in debt”?
Learn to budget
Budgeting is essential because if you must build wealth, you have to track your expenses. Those who are financially stable don’t spend without a plan for their money. If you keep spending without a plan for yourself, you are working towards debt. From an early age, you need to make better financial decisions that won’t destroy your future. If at the end of the month, you are confused about where your money is going, it means you don’t track your expenses. Please, keep in mind that it is dangerous to spend your money without knowing how and where it flows to.
If you must start a business, have a business plan
If you are ready to start a business, don’t begin if you don’t have a clear business plan. The business plan will regularly give you direction and put you in check. Before starting the business, have precise short- and long-term goals. Your business plan should be realistic and achievable. The document should describe what your entire business is about. In the long run, the business plan will be needed for you to get business partners or investors. No one will be willing to invest their hard-earned money in business without a plan.
Learn to save
Life is full of uncertainties, and we need to be prepared. If you don’t save part of your income, it won’t be easy to get your way out of situations. It would be best if you got used to setting aside a particular amount of money. This will help you escape life hurdles as they occur. We all want to live a secure life, where we don’t have to panic when our car suddenly breaks down and we need urgent cash to get it fixed. If you have initially set a part of your money aside, it will be easier for you to have something to fall back on.
This is one of the most crucial skills you need to take charge of your finances. People with self-control can manage their finances better. Without self-control, you can’t stick to saving a specific amount monthly. This virtue is something that you learn and master. If you don’t have a way to control yourself, it will be difficult to control your expenditure. Wherever you go shopping, control yourself and don’t buy things that are not on your list (impulse buying). You don’t need the item since you didn’t add it to your list of items.
Differentiate your need from want
Need and want are two essential terms that you must understand before your next shopping trip. When you can differentiate between “need” and “want”, you won’t always have to regret buying something. When you “need” something, it means such things are a necessity, and you cannot live without it, for example, food, clothing, shelter and water. While “want” is an item we purchase to improve our lifestyle.
Have a clear financial calendar
Everyone is busy, and it is easy to forget things. If you don’t remember things quickly, you need a financial calendar to remind you of your money list. Your financial calendar will help you keep a date of the bills you need to pay. It enables you to track your due dates, and you don’t need to overthink before you can recall the next item on your list. It accurately keeps you informed of your financial matters. They are easy to maintain, and you can personalise them to your taste.
Have a financial vision board
It will help if you have a vision board where you design what you want and how you want to achieve them. Your vision board should be well crafted to remind you daily of your financial goals. This board provides you with clarity on what you want to get from your finances. They increase your focus and shape your thoughts toward a better future.
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Spend money to get more knowledge
There is no harm in investing money in yourself. This will prevent you from being cheated wherever you find yourself. Your knowledge will open the door to financial opportunities for you. You will be more relaxed when you find yourself among people that discuss money matters. Your understanding of finances will make it easy to choose a truly desired life. Nobody gets financially stable without first investing in financial education.
Have a better connection
You must have heard of the story of people who become successful because they connected with the right circle of people. You need to understand that those you hang around will determine how productive you are. For instance, if your group of friends have bad money habits, you are also likely to get influenced by them. However, when you hang around successful people, it becomes easier for you to achieve success. Such people will give you better business advice and tips.
Have a positive money mindset
Having a positive money mindset has to do with your thoughts about money. For you to succeed financially, you need to work on your thoughts. Be “optimistic” instead of being “pessimistic” about having money. When you have a negative view of money, it won’t be easy to find money-making opportunities. This will prevent you from reaching your goals. Set your eyes on the prize of your goals and believe that you will get it. If you are yet to establish a healthy money attitude, do so today.
Forgive yourself for financial mistakes
We all make mistakes in life so don’t dwell on yours because the life in front of us is preferable to the one behind us. What is done is done; you cannot continue to live in the past and expect yourself to be happy. Everyone is working hard, and no one has a perfect life. We all make mistakes at times, big or small; it is a mistake. The best way to move forward is by acknowledging your mistake. Be ready to learn from it. Each mistake happens for us to learn from them. Even the most successful person makes mistakes. However, they know and move on; that is how they become successful.
Stop comparing yourself to others
We all have our strengths and weaknesses. When you compare, you will be unhappy with yourself, preventing you from taking the right step. You have your accomplishments just like other people do. The time spent on comparison will be a waste; why not invest in personal development? The trust is that the more you compare yourself to others, the more damage you will cause for yourself.
Don’t compete with people you are supposed to learn from
If you feel the best thing to do is try so hard to compete with everyone you come across, you need to change that mentality. The person you should compete with is who you were yesterday because everybody has a different target and goals. Compete less and be open to learning about finances from those who are better than you. Don’t live all your life trying to compete with people who are not competing with you. The essential thing in life is to be better than who we were yesterday. Your aim of working hard and saving should not be because you want to have better savings than your friends or neighbours.
Set financial goals
In life, one of the reasons why people are lost is because they don’t know where they are going. Everyone wants to make money, but how many people have a financial goal? You need a written document of how much you want to make and how you want to make it. Get a paper and a pen, and write them down clearly. Your goals should be specific and achievable within a time frame.
When you are grateful for what you have or where you are, you will have more. Even if you are yet to achieve all your financial goals, you have to be happy that you at least tried. Practising gratitude does not stop you from pursuing your money goals. Gratitude means you are glad for what you got while looking out for more.
Be ready to help others
You will live a better life when you help others. It doesn’t mean that you have to give out all you have earned. You can help others by advising them on the right step to take. No one can make it alone; we all need one another to have a successful financial journey. From rendering help to others, you will be open to connecting with more life-changing opportunities.
Invest and Reinvest
Yes! I saved the best for the last. Investing is the only way to build wealth. If you want to be financially secure, this is one piece of advice that you should frame and hang in your room. You don’t build wealth from saving, but you generate wealth when you can successfully put your money to work.
This is the end, but here is a reward for your time and patience. Thank you for staying till the end of the post.
There is no better time than now
Today is the best time to start working on what you want to achieve. If you’re going to start a business, start now. If your goal is to start your investment journey, there is no better time than now. You have to stop waiting for the right time, and there is no such thing as the right time. The time is never going to be right unless you begin.
The advice above is worth more than gold. Be patient with yourself as you put it into practice. You cannot become a boss in a day. It takes time and continuous self-improvement.
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Recommended books for further reading:
- Start With Why: How Great Leaders Inspire Everyone To Take Action
- Not a Diet Book: Take Control. Gain Confidence. Change Your Life
- Zero to One: Notes on Start Ups, or How to Build the Future
- The Little Black Book of Workout Motivation
- You Are a Badass: How to Stop Doubting Your Greatness and Start Living an Awesome Life