Financial success does not happen by accident. It results from your conscious effort towards how much you earn and keep. It is advisable to ask yourself how much you made and how much were you able to invest? We all need to understand the basics of financial success. Today’s post is about the golden rules for success to be achieved financially.
Here are the rules, and ensure you read till the end to enjoy a bonus point as a reward.
Have a financial goal
Before working towards anything, you must have a set goal. Your financial life is not an exception to this rule. Your financial goal can be short, medium or long-term; it all depends on what you wish to achieve and when you want it to happen. A financial plan helps guide your financial decision, and it helps to ensure that you are on track. When you have a set financial goal, it works as a tool to motivate you to do better every day.
It is challenging to grow financially when you are in bad debt. As much as possible, you need to be disciplined financially, and you should avoid credit-card debt. The stress from debt does not just affect your financial life, it also leads to a series of health complications. Some debts come with a higher interest rate; this will make it difficult for you to make other financial decisions that can lead to your growth.
Be financially literate
You need to be educated financially. You cannot wake up and grow your money one day without understanding how money works. If you don’t learn to manage your money, the chances are high that you will always find yourself in bad debt. In addition, you cannot always rely on financial advice from friends and family without having any knowledge of your own. Random advice from people is hazardous to your finances. You need to beware and seek knowledge.
Learn how to budget
The importance of budgeting cannot be overemphasised. You need to have a budget before spending your money. This will prevent you from spending what you don’t have. This is a critical golden rule for financial success. Many people are always confused, and they always complain that they do not know where their money goes after earning it. If you are among this category of people, begin to track your expenses, and you will discover where your money goes.
Learn to pay yourself first
If you want to succeed financially, you have to start paying yourself first. When you receive your next pay, save some money for the future. You need to have some cash set aside for emergencies. In other words, have emergency funds. Life always comes with unplanned expenses, job loss, a broken car, or even an illness. However, if you have money set aside, it will be easier to take care of such situations when they arise.
Before we proceed, please like, share and comment in the section below. You can also check out our previous post on “Mistakes To Avoid To Live a life worth living“.
Live below your means
This is a financial habit that everyone needs to master. It would be best to stop living life to impress other people who don’t care about your entire existence. You cannot grow your money when you spend all you have to buy things you don’t necessarily need. Please, be ready to trade your immediate pleasure for a better future. Some people cannot handle something as small as a car repair without asking for financial help from people. It is mainly because they live above how much they earn, don’t forget rule number 5 (pay yourself first). If they had applied it, it would have been easier to take care of their issues.
Differentiate between wants and needs
When you need something, you cannot survive or live without it. However, when you can function properly without that particular item, you can categorise it under want. A want is needed to improve the quality of life that we live. For instance, we all need clothing, medical care, shelter, water, food and more. However, every other thing can be seen as “want”, including your desires and cravings. For financial success, learn to go for the necessities. You don’t have to answer all your desires.
Get paid for your worth
Many individuals are working tirelessly, and they have nothing tangible to show for it. To apply this rule, don’t accept a job until you know what they pay. You need to ensure that you are getting paid for an amount equal to your effort and time. This is not as simple as it sounds, but it can be achieved if you are determined to.
You need to learn how to keep a record of your financial activities. Many people find record-keeping stressful, but it is essential because it is easy for us to go off track when making decisions. To make the process easy, you can consider getting yourself an accountability partner. It has to be someone who has the same goal or vision as you. Don’t forget that you cannot work with someone that doesn’t agree with your goals or vision. Your accountability partner can be your siblings or your spouse.
I love saving the best for the last. Financial security cannot be achieved if you don’t invest in any proven system. Learn to invest in stocks, bonds or other opportunities out there. The only proven way to multiply your money is through investment. Don’t just save; put your money to work as well. Life is more comfortable when we have a secured financial future.
Finally, financial success can be achieved if you have invested in yourself. Self-investment is an essential aspect of financial success. Then, when the above golden rules are well applied, you will be happy with your progress financially. Investing in yourself is never a waste of resources, and it is continuous.
If you like what you read, please share it with friends. Let us know which of the rules you have used to achieve financial success. You can do that in the section below.
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