How to be More Financially Secure
I thought after graduation, money would just flow in abundantly and I would live happily ever after with shopping. Oh boy, I was wrong.
You can make better choices from other people's mistake and learn a few nuggets of lessons learned as as consequence.
Building Wealth Takes Time
And true what they say the earlier you start, the better. I would take the extra mile and say I wish it started from your birth. But not everyone is lucky to make smart financial decisions for their children.
But as soon as you are able, try to save every bit of penny you have to accumulate and not to spend on something you see in the store which just gives fleeting joy. The real joy in life cannot be bought.
If I could turn back time, I will accumulate the money given to me on Christmas, savings from my allowance, the cash gift for winning a local beauty pageant, the income I earned from selling sugar-coated peanuts, and ice candy.
During college, I would've saved my scholarship proceeds. I would've saved the money I bought on self-help books, clothes, and, beauty products and other knick-knacks. To be honest, just a few pieces of clothing, food and some pocket money for transportation is all I need. My parent pays for my rent and expenses back then.
Invest in Your Trade Tools and Skills
Being an accounting graduate, for me it was a laptop. Excel was not taught in my school although it was one of the prime universities back then. Mostly the discussion about computers was theoretical.
I needed a laptop but my parent couldn't afford. I grappled through my first working years bothering my coworkers how to do basic stuff which eat out on my confidence and affected my performance at work.
I could've easily learned basic and advance Microsoft Office skills conveniently if I had a laptop.
Had I saved enough for it, I would've been able to buy one easily and be a rockstar in my workplace.
Be Intentional in Personal Decisions
When we are young, possibilities are endless. It is a fun time to be alive. But what some younger ones don't know is that this can all go downhill with one mistake. You have to set your priorities straight.
If you are one who is physically tempted but want to abstain in intimacy until you are married, then you might consider not getting into any relationship at all even casual ones to focus on your career. But if you are more welcoming of getting intimate you should protect yourself by taking contraceptive pills or using having a condom with you if you are a man. You may be in denial of your desires because of cultural stigma but if you tend to act out on it, better to accept that you have this way of thinking and impulses and get protected.
Our partners may have different plans that we don't know of and this can derail our own personal goals.
Every Cent Counts
Imagine the money I would've have accumulated when I graduate college had I done all of the things I mentioned above. I would've had cushy cash on hand to start my way in the corporate world.
Take advantage of rewards cards like Mercury Suki card which has lifetime membership and no expiry. Over time, points will accumulate and you can buy medicines or vitamins, snacks and beverages, and toiletries from the store using this card.
Spending time on sites like myLot during your free time will make you earn money that goes into your Paypal account while meeting new friends and having some social intellectual satisfaction.
Let Go of Shoulds
Do not feel deprived when you are not able to buy all those fancy things, get into the trend being donned by your peers. Know that you are working on something more important.
Yes, happiness can be bought because shopping is fun and there is so-called retail therapy, but it doesn't bring long term peace of mind and security and if you weigh the two together you will realize that the latter is more important.
Do not think that just because you are a certain age, you need certain things to feel successful or that society thinks you should have. Think that you have the option not to tie yourself in a 30-year house mortgage and installment loans on car and furniture payments. Be advertising-proof so you don't start maxing out credit cards through mindless shopping and consumption.
In short, avoid inflationary lifestyle where every time you get extra income you level up as well in your spending. A better way would be to live below your means and grow your savings. It is your life, your time and energy that you pay for these things.
Or better yet, do not incur one. But if you are already deep in it, dig yourself out of it. The stress and mental clutter it gives will wear you down in life. Imagine in our current covid-19 situation, if one loses his job and has no other source of income to pay mortgage, it can be devastating.
Savings, Investments and Sinking Funds
Autosave is one way to save money where a portion of your salary automatically to a savings account every payday.
Investing your money to make it earn interests and dividends is also one way to grow your money.
A sinking fund is money you are building for a major expense.
As a fresh graduate starting out you can start building on a freedom fund. This will give you some room to explore and find a job you like instead of slaving away in a job that you hate or gets you nowhere.
If you have a child, it is good to start a college fund starting from birth.
As a 30-year-old, you can beef up your retirement fund or maybe an early retirement fund
Everyone should have an emergency fund. Our current Covid 19 situation is one example of an emergency situation where you lose your job, having an emergency fund is a lifesaver.
Don't Put All Your Eggs in One Basket
Having Multiple Sources of Income
If there is one most important solution to financial insecurity, this would be it. It cushions the risk in case you lose your 9-5 job. This is like diversifying your portfolio and not putting all your eggs in one basket. This takes more time to build and needs more initiative, effort, creativity, and research.
For example, if you want to start your own business, it will be difficult finding one which works, but if you get successful at one, that extra inflow of income will make you feel more financially secure.
Writing on hubpages.com is one of the small ways to have another source of income. The key now is to stay motivated and inspired and just like in everything in life is to give it your best and better.
I will personally look back into this list to guide me in my path to financial security and how my strategies would evolve through time. I hope this will be of some help.
This article is accurate and true to the best of the author’s knowledge. Content is for informational or entertainment purposes only and does not substitute for personal counsel or professional advice in business, financial, legal, or technical matters.
© 2020 Micha ELa