iSavta | 15.06.2020

Have you ever felt like you’ve been working all your life, but there is still no sense of financial freedom? Do you feel like after working hard, you just have to treat yourself out or buy the things you’ve always wished to have, but after a little splurge, there’s little budget left to pay tons of bills? Moreso, you wish to save, but don’t know where to start. Today, we’ll look at some tips financial experts have suggested in order for people to achieve financial freedom.

 

Pay Yourself

 

This sounds pretty interesting. Does this mean it is actually correct to splurge on yourself first before thinking about paying the bills? Sorry, but not necessarily. It simply means, from your income, regularly take a little amount for savings, before spending for your expenses. Many people try to save what’s left after all the expenses, then realizing there’s really nothing left afterwards. Formula should be: INCOME - SAVINGS = EXPENSES. 

 

If you’ve noticed, not all who look rich are actually rich; the most important thing is to be truly rich. Only those who have extra money in the bank can be considered one. No matter how small it is, as long as it is regular, you’ll surely find some money to use in the future when you save. Try by starting to save 3-5% of monthly income.  

 

Pay Your Bills

 

Before giving yourself into the temptation of the biggest sale of your favorite brand, stop, and pay your bills first. Many people get the stress of how to pay their bills because they thought they were able to save by buying their most wanted stuff that was on sale. While it must have been a good buy, remember, when you still have due dates, it’s not yet the time to buy. Set aside a budget to purchase your wants, but do this after you’ve settled your bills and have finished buying all your needs.

 

Pay Your Debtors

 

Even rich people have debts too, and responsible debtors are honored by creditors. If you pay your credit cards on time, the bank increases your credit allowance. This means, when we are responsible in dealing with our debts, we become trustworthy. The richest persons on earth are the businessmen, if you want to become one one day, you have to learn the value of trustworthiness. 

 

Try to lower down some of your consumption to lower your bills, so you would always have more money to settle your debts. Not only will you become honorable, it will give you peace of mind. After all, no one is really financially free when they still owe someone.

Budget for your Financial Goals

 

Do you dream of renovating your house, or buying a new car, or sending your children to the best schools, a holiday in Europe, investing so your money can start working for you, or having your own business? These are great financial goals. They say, what’s the use of working so hard if we can’t enjoy the money we’ve worked hard for? While dreaming of all the fine things in life might not be a bad idea, we have to remember that reality says, we have to save up in order to achieve them. 

 

Saving 3-5% every month won’t be enough, though, it’s a good start just to have an emergency fund. But setting goals means that we have to discipline ourselves to set aside another fund for it (unless we want to drown with our debts). So we have to apply financial planning strategies - which is simply budgeting our monthly income and saving more, it is then that we will be able to see our dreams come to reality.

 

Secure Yourself Against the Odds

 

Majority of the world’s population are like us - the working class. Very, very few have generational wealth to depend upon should the odds turn sour. While you may be in your prime, able to work hard, looking good and healthy, it is unhidden that everyone will grow old. Sad reality is, growing old means lower income, unhealthier bodies, and unsurmountable expenses. This isn’t bad news altogether. There is a good way to manage this dilemma. Secure Yourself. Pay your social security, buy health and life insurance, and start a retirement investment fund. The odds will come, like ants, it’s best to prepare before the storm comes.

Finances can be a very complex subject. However, there is hope to manage it well. Before spending your hard earned money on your wants, think long term first. Think twice before buying or subscribing for paid services. If there’s really a need for it, then go for it. 

 

A healthy wallet is simply a balanced one, one that is wiser, one that can attack future stresses before they even come, and this is what we hope everyone will achieve. As you plan your budget, we desire to see you truly reach your dreams!