Have you ever heard the famous phrase “money doesn’t buy happiness?”. As much as that may sound true, it neglects the opposite, which can create everlasting sadness – poverty. Money doesn’t buy happiness but living a life where you don’t have to worry about your next meal source gives you peace of mind and the ability and free time to do other important things in your life.
Humans have three greatest assets; money, time, and energy. If you lack money, you have to keep using the other two to make money. But once you begin to live in abundance, you have your time and energy to yourself. You can spend it all on things that will enrich your life with beautiful experiences and feelings of fulfillment. What better ways can you become one of the happiest people on the planet?
If money cannot buy happiness directly, it can offer you what you need to live a happy life, which is why you should never relent in improving your finances until you become wealthy. In today’s blog, we want to show ten ways to optimise your money and improve your financial life. Also, give out a free bonus point if you stay till the end of this post.
Ways to Enhance Your Wealth and Improve Your Financial Life
Have A Miscellaneous Fund
Life is uncertain, and no one knows what can happen tomorrow. All we could do was predict. Ideally, our shortage of knowledge demands a prerequisite to be on the safer side, especially with our finances. That’s what miscellaneous funds could do for you. It’s your edge against the uncertainty of life. It gives you the extra advantage of not melting down in the face of obstacles and unanticipated challenges.
If there is an interruption in your income and emergency situations, your miscellaneous fund will be the wall you can rely on. The money you save will someday save you, whether it helps you grow your wealth or prevent your downfall. It’s wise of man to plan against uncertainties, so he doesn’t fall due to unforeseen situations or fall into debt to get himself out of the mess.
Be Aware Of Your Expenses
If you don’t know the source of the disease, you can never cure it. The same principle goes for money management. Awareness of how you spend your money is the first place to begin money management.
You might be surprised to find out unnecessary ways you’ve been losing money. When you track your expenses and see where your money goes every month, you can figure out what to stop buying and better ways to spend and improve lifetime value.
Nobody made it to wealth, unaware of his spending. Every rich man knows that each dollar is a seed, and it must be sown only on fertile lands. Since you want to be one of them, you should track your spending and adjust your spending habits where necessary.
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Keep Your Savings
Saving money is an integral part of building wealth. It’s one of the rich people’s greatest strategies. To them, saving money is like creating an army that will fight the war of life on your behalf. The more soldiers and weapons you have, the more your chances of winning. It’s a poor strategy to fight the war all by yourself. There is always a limitation to how much you can work to earn. But when you save part of your money consistently, you can leverage it to work, earn more money and create a life where you won’t have to work another to earn a living.
Scale Up Your Earnings
Another ways to optimise your money is to scale up your earnings. Imagine two cities in a war against each other. The first city gathers ten armies and weapons daily, while the second gathers 50 armies and weapons daily. Which of them could win the war? The ones with more armies, weapons and experienced generals will have the upper hand.
Saving is the bedrock for building a wealth skyscraper, but if you’re too slow in adding more blocks, you might never be able to complete it. This way you need to earn more money. When you earn more money, you will have more to save, thus moving faster towards financial freedom.
You can ask your boss for a raise or start a side hustle to make money. Luckily, your side hustle might splurge and even replace your side hustle. Remember, you cannot save your way to billions, but you can earn it.
Value Your Time
As mentioned earlier, the three greatest assets of every man are money, time and energy. If you lack one, you can use the other asset to get it. But the most important of them is time because it’s limited. There are only twenty-four hours in a day. How each person spends his time makes a difference in wealth.
Optimizing and scaling your finances demand that you value your time. It’s essential that you transition from making money on your time to the value of the problem you’re solving and the number of people you’re helping. This is why business owners, authors, creators and others with valuable skills are wealthy.
You cannot work beyond 24 hours a day, but you can create a book, software or product that can serve millions and make millions. The more you understand the value of your time, the faster your road to wealth will be.
Avoid Lifestyle Servitude
Here is a good way to understand lifestyle servitude. MJ Demarco, the author of Millionaire Fastlane, said in his book, “If you think you can afford it, you can’t.” This simply means that the moment you’re contemplating and thinking too much before you buy something that’s not a necessity, just know that you can’t afford it.
If you want to buy a piece of candy for your kid, you won’t think that much as a decent income earner. But what happens when you want to buy that car, dress or jewellery? A tough argument opens up in your brain. According to him, you don’t have to stress your brain. Since you have to think so much to buy liability, it’s a sign you can’t really afford it. Elon musk won’t think that much before he does.
As your income increases, you should improve your asset column and let the asset buy those luxuries. Avoiding lifestyle servitude will prevent you from working your whole life in the rat race, where you can’t stop working because you have bills to pay and debt to settle.
Fix Your Money Tank Leakages
Look at things that are taking away your money but adding no value to your life. For example, do you overspend on shopping, eating out, or have unnecessary toys lying in your garage?
And for the things you no longer need, sell them. It’s other ways to optimise your money and boost your savings. Don’t forget the basic secret of the rich: every penny is a seed. Only poor people see every dollar as a tool to buy another want that doesn’t scale their finances.
Those leakages might appear insignificant, but they’ll become a big chain that drags you back on your financial journey. In fact, they can make it impossible for you to ever reach the finish line.
Edge Against Inflation
One of the greatest midnights of money in history is inflation. It comes gradually and eats up your savings without knowing. As the prices of goods increase due to economic problems, the purchasing power and value of money fall. That’s why a hundred dollars now can’t buy as much as a hundred dollars five decades ago.
This is why you have to be intelligent and edge your money against inflation. If you don’t do so, you’ll lose your savings to inflation and find out your 10,000 dollars has lost value.
Buy More Assets Than Liability
You can buy some things purposely for your benefit and still let them serve you as an asset. For example, if you love jewellery or precious stones. They’re good examples of assets that don’t depreciate in value like other commodities.
The bottom line is that you should let your asset column be greater than your liability. As you must know, an asset adds money to your pocket, and anything that takes away money is a liability.
You’ve read this far, and that shows how determined you’re to succeed. Therefore, we decide to appreciate and encourage you with a bonus that will optimise your life. It’s called gratitude. If we can’t enjoy the small things in life, more money or material goods would never make us happy; it’ll only add to the problem. As much as motivation pulls us to achieve more, gratitude is what makes us feel good while pursuing that dream. Where you are today is your dream yesterday, but now that you’ve got there, you can’t even appreciate yourself for coming this far. Plus, your current position is what someone else wishes they could be. Life is in levels. If you don’t look back and pat yourself on the back, you might miss out on the beauty of its adventures. Even worse, you can become depressed and never get the next thing you’re looking for. If you want big wealth, you first have to appreciate and manage the small you’ve. That’s when the world will see you as worthy of having more.
If you enjoy this blog, kindly give it a thumbs up and share it with other people looking to improve their finances and climb to riches. Remember to signup to our newsletter for more updates. In what way have you been enhancing your finances? Let’s know in the comment section. See you in our next blog.
Recommended books for further reading:
- Rich Dad’s Guide to Investing: What the Rich Invest in, That the Poor and the Middle Class Do Not!
- Click Millionaires by Scott Fox
- The entrepreneur mind by Kevin O. Johnson
- The one thing by Gary Killer and Jay Papasan
- Investing QuickStart Guide: The Simplified Beginner’s Guide to Successfully Navigating the Stock Market, Growing Your Wealth & Creating a Secure Financial Future
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