Let’s face it. A good majority of the population is horrible when it comes to money. Around eighty percent of Americans are living paycheck to paycheck and some don’t even have $1000 in savings. How can this be in such rapid times of economic growth? To become financially free, you have to pay extra close attention to your finances. In this article, we’re going to show you how to do that and where to put your money.
1. Make a budget
Unless you are Bill Gates or Jeff Bezos, a budget is necessary to reach your financial goals. At the beginning of every month, make it a habit to create a handwritten budget. This budget is going to lay out where every dollar of your income is going to be going. Rent, entertainment, utilities, food, and many other expenses are all going to have to be outlined in this budget. You should be going over your budget and financial accounts daily to make sure you stay on track throughout the month. Overall, this is by far the most important step.
2. Increase Income
The financial game is twofold. You have the inflow side and you have the outflow side. Some of us have trouble with the inflow side. Make it a goal to start to expand your sources of income and not really on a single source. To increase income, you could start a business, start a side hustle, do services online, or get another job. In the end, you want to make as much money as possible and spend as little as possible. The larger that spread is, the more you can leverage that extra cash to create even more income.
Debt by far is one of the biggest burdens in America today, especially student loan debt. Unless it is debt that is going to make you rich, you shouldn’t take out a loan. This is why saving money is such an important step.