Jay Mark Balabis
We all work hard for the money. We toil, we sweat, and we really pay a good price just to have an income. However, after so many years of working you are still in a very difficult financial situation. It does not mean that you are poor, but you manage your finances poorly in the past, despite the various resources you have. Thus, you can probably tell yourself you are broke.
The good thing about it is that we can solve this money problem and there are simple ways to unchain yourself from being broke. Someday you will say that finally, I am broke no more.
Allow me to introduce some ways for you to help yourself more in your finances;
- Love thyself
As genuinely as possible, you need to love yourself. A positive self worth allows an individual to see his finances in a better perspective. You will not equate your worth with what you can buy or the material things that your money can acquire. The true value of money is for you to bless yourself and others not to live flamboyantly to make an impression to many. By loving ourselves authentically you will avoid the trap of materialism and approval addiction. You won’t buy and acquire things you don’t have to impress people you do not even like. Thus, you will be able to learn that true wealth greatly means simplicity in your lifestyle.
- Increase your cash cows
As I told you in my past article, to have a single source of income is Jurassic. It will not work so well today. Considering the factors such as inflation, taxes and savings with a low rate of return, the need to open other sources of income is a must. Your single source at times can only pay the bills and even if it pays well it is still temporary. You need to learn how to create successful sources of income both active (you working hard for money) and passive (money working for you).
- Cost cutting even if it can hurt your pride.
Identify your needs from wants. Many times there are expenses that you can do away for some time since these are not part of your necessities in life. Possibly it’s your car, it’s your rent, it can also be your desire to be updated with the newest gadgets and the likes. You need to learn to deprive that pride and start cost cutting. It is far better to live in simplicity rather than to live in life in debts just to maintain lifestyle you cannot really afford.
- Avoid credit card
Again many have fallen into debt trap. If you have a great amount of discipline you can use credit card for convenience. However, if you think you lack even a little discipline in yourself never desire to acquire a credit card. In addition, when you use credit card you are using the power of money to compound against you. In our country, an average bank charges its creditor around 3.5 % per month and almost 42 % or more per year. Meaning to say, you are losing almost half of your money potential instead of going into an investment such us mutual funds and stocks where you can double your money through time.
- Find right mentors and the right environment.
I firmly believe that you are a product of your environment. With whom you dedicate your time and talents will determine your level of success or failure in your life. That same thing happens as well in our financial life. Seek for that right environment where you can find the best people you can work with. They will be happy to serve you, inspire you and even mentor you to success. Learn from their wisdom, be like a sponge and realize that financial literacy is a different venture that’s why a mentor is a great addition to your success. Be humble enough to empty your cup.
- Save and invest
Warren Buffet once said “Don’t spend what is left after spending, but spend what is left after savings.” A great formula for financial success is the habit of saving. Habit means a way of life, a discipline on a long term basis. I’ve met a lot of people who want to start investing yet they don’t have any desire to save. It is very important to realize that saving is the prerequisite of any investment venture. Saving and investing should work together, learn now to save and invest, it’s a necessity.
- Increase Financial IQ
Financial IQ is undeniably one of the most overlook aspects of our life. Traditional school system will focus on complicated subjects such as Mathematics and Science yet they forgot to teach us better in the practical side such as Money management. As a teacher, I’ve encountered a lot of brilliant people, masters of their craft, degree earners with flying colors whom I respected however they are still struggling financially. These gifted individual are great in their own field yet they were not able to reach success in their finances. You need to be serious as well in achieving financial success. In today’s world, we have all the access to nurture our knowledge on finances. We need to maximize these vehicles, start reading books on finances, have a talk with the financially wise individual and attend seminars to continuously make yourself equip and updated in your financial journey. The foundation of financial success is financial knowledge.
These tips are simple yet not easy. It will require a lot of discipline and dedication from you over the long run. Nevertheless, this is a journey for all of us who desire financial freedom and you need to pay the price of being free from financial burden to achieve more in our lives. Prosper!
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