8 Simple Tips to Improve your Finances in 2017
Every end of the year, many people make their resolutions to improve their finances, but a few months later that are back to their old habits. Here are some quick tips to help you focus and reach your mark this year.
1. Set goals and savings targets.
If you've never planned your finances, maybe it's time to start doing so. Analyze the income you receive and where the money you spend goes. What expenses are avoidable? How much would you like to save and how much can you save? What alternative sources could you use to earn some extra money?
2. Start the good habit of "paying yourself first."
Try to automate your savings so you won't depend on your willpower and start creating a savings discipline. Set up a savings account where each month a certain amount of your income (if possible, at least 10% of your revenue) is automatically deposited.
3. Live well below your means.
The fact that you can pay for something does not mean you can afford to. Stop trying to impress others since this can quickly get quite expensive. Significant expenditures and luxuries to be happy and enjoy life (at least the good things of life) are not required. Therefore, spend less money and invest the savings.
4. Drink half of what you drink and smoke half of what you smoke.
Although, with no doubt, it would way better to simply not drink or smoke at all because of the impact it has on your health, at least try to slow it down. And not only for the health issues but for the lack of creativity and mental acuity that people lose by drinking. At least, avoid doing it during the week. What you save, invest it.
5. Before any investment, invest in yourself first.
For Warren Buffett, this is the most profitable investment you can make throughout your life. Invest in acquiring new knowledge, prepare yourself better, specialize in something. Nurture your mind with reading and cultivate your body through exercise and a healthy diet.
6. Entrepreneurship is the best way to financial freedom.
No need to leave your job, but you can build a side business to not depend on a single source of income. Remember that if you search for financial independence and only work for someone else, you're in reality just helping that person achieve his own financial independence.
7. Avoid debt.
Avoid debt for as long as possible, and above all, avoid purchasing high-interest debt. Remember that the secret in finance is to generate a positive interest for our money. Debts, however, are a way to produce a negative interest against us. And above all, avoid toxic debts, which are usually credit cards.
Debt is good as long as it is an investment, that is, only if you acquire it to provide a significant return, such as acquiring debt to start or expand your own business.
8 Use public transportation and related apps.
Moving around in your car is way more expensive than using public transportation. For long distances, use apps such as Waze. Not only can you generate immediate savings in the cost of the trip, but also on automobile maintenance costs.
As you can see, these are very simple tips than can be summarized like this: earn more, save more, and invest more. With a little discipline and motivation, you can achieve your goals and make this a great year.
© 2017 AF