Many people across the world celebrate halloween to observe the commemoration of the departed. And whether we like it or not, every halloween associating to gory and creepy stuff or to trick or treating.
If given a choice, we will always choose the treat – hands down. But would it be same as true to our finances? That there will always be a “treat” or we will be “tricked” a lot of times and make bad choices. Thus, making our finances look like the scariest thing we could ever look at?
If you don’t want the most horrifying thing to happen in your finances, here are some tips that you could
Pay yourself first
This is the first thing that you should do – pay yourself first. Often times we set aside money for all the expenses and what we think is left if our savings. It is best to practice of setting aside money to pay the one working for you to be financially independent – YOU.
You can start with 10 to 30 percent. As long as you set your mind in paying yourself first.
Plan your finances and stick to your budget
Best way of starting and continuing your journey to financial independence is by making a sound and realistic plan, and of course, sticking to it. This way, you won’t lose sight of what you want to achieve.
Live within (if not, below) your means
We often think that rich people spend so much. At their rate, they still spend below what they earn, if not, expenses can overtake them in no time and make them broke.
Same thing applies to everyone, no matter how much we earn, what is left after all the expenses, is what we can have. So, by living simply and appropriately based on how much you earn, makes you more liquid and makes saving easier, and faster to achieve your financial goal.
Clear your debts
Paying all your debts – credit card, personal debts, etc. – releases you from all the bondages caused by bad credit. I am sure, all of us wants a clean slate to make things easier. A bad debt is always a dead weight burdening you every now and then.
Put money for insurance, emergency fund
All your savings can be gone is zip if you don’t protect yourself from unlikely incidents. That’s why, many financially independent people secure their money in many ways – one is securing emergency fund or by availing themselves of insurances (health, life, non-life, etc.)
Make and Update Your Will
Plan ahead and make a will. According to Stephen Covey, “Begin with the end in mind.” If that is the case then, plan ahead even before your actual death. This way, you can save the wealth you build for the people that deserves them.
Do Business and Investment
Saving money may be good, but it is best to do business and invest. Doing business and investment grows your money exponentially compared to just saving.
Plus, INVEST on YOURSELF. You are your best tool to start and end with in life. So better invest physically, mentally, emotionally, spiritually and socially.
Get advise from experts or authorities in the industry.
Make no mistake, they are not always right, and definitely not perfect people. But, the things they learned through their mistakes and the right things they did, makes it easier for people who listen to them to learn from what they encounter.
It is wise to learn from your mistakes. But I believe it is wiser to learn from other peoples’ mistakes.
Like this November, some of the financial gurus in the world, led by best-selling author Robert Kiyosaki (Rich Dad Poor Dad) will discuss some of the principles in finances plus how Filipinos can be ready in case of a market crash in 2016.
So, if you set your mind into being financially independent, there is nothing that can stop you, except you. I bid you the best on your financial journey.
Don’t forget to comment below, in case you have other tips in mind that I can add to the list. I would be more than happy to share it to others.
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