Unfortunately, in the United States of America, people are just really bad with money. They finance cars and houses that they can’t afford and get themselves into a tremendous amount of debt. Student loan debt is also one of the biggest burdens within America. It is causing many families to delay starting a family. All in all, we weren’t brought up learning about money. Very few individuals we’re. The good news is that personal finance is very simple and it’s never too late to start. In this article, I’m going to be breaking down my top money tips that you can implement to have financial success.
1. Have a budget
This is by far the most important step if your goal is financial freedom. If you don’t focus enough on your money and where it is going, you’ll never reach financial independence. At the beginning of every month, make a written budget for that specific month. The budget should know where every dollar of your income is going whether that be towards entertainment, savings, rent, or food. In the end, money get’s bored and you have to pay constant attention to your accounts and financial goals in order to keep it.
2. Save to Invest
When we are growing up, a lot of us are told to save our money. There is only one problem with this: inflation. When you save a large sum of money over a long period of time, that amount of money get’s weaker due to inflation. Instead, you should be saving to invest in other assets that are going to provide cash flow. This can be your own business, the stock market, or even real estate depending on how much capital you have. In the end, save to invest in other things that are going to give you more money.
In simple terms, avoid all debt unless it is debt that’s going to make you rich. Debt can really hurt you on your journey toward financial freedom.