8 Money Tips That Will Change Your Life Forever

That is the goal, right? To finally have enough money to live your life the way you want.

A life where you don’t have to worry about deadlines, or your bossy boss or an annoying colleague.

A life of where you have the time to travel, make new friends, dine in the best restaurants. In fact a life of adventure.

These 8 tips will help you get there as soon as possible…

1. Set financial goals

Goals motivate. Goals make things happen.

The essence of setting a goal is to have something to look forward to; something that pushes you.

How much do you want to worth in the next one year, five years and even ten years. Write it down and check your progress from time to time.

Be ambitious about it. A small goal doesn’t push anybody and when it doesn’t push you, there is no point in setting the goal in the first place.

Successful people know what they want in life. They set goals and push for their dreams to come through.

To learn how to set your goals, check out this article – 6 Proven Ways to Set Your Goals and Achieve Them

2. Create a budget

A budget is just an estimation of what you will earn and what you will spend.

If you are able to know how much you earn and how much you spend, you can plan your future.

Knowing how much you spend will help you know how much you can afford to save and invest.

Budgeting is a very important financial tool that you should learn and put to use.

3. Save

How many percents of your salary or all your earnings do you save? Or are you one of those that says: I can’t save, my salary won’t just let me! Or I can’t save, I have too many obligations!

The only way you can lift yourself out of your current financial level is when you begin to save.

That is if you don’t wake up one morning to find that a huge amount of money has “missed road” into your bank account. Apart from that, you need to build a significant saving.

Savings will make it possible for you to invest.

Savings will make it possible for you to have new income streams.

When you invest and create new income streams, your bank account gets fatter and you are on your way to financial freedom.

When you save, see it as buying your freedom in the future because that is what it is.

4. Invest

Investment means different things to different people. Whatever you believe to be investment if it doesn’t guarantee your principal, it’s not an investment; it’s speculation.

Remember that the money you are investing is one that has taken you a lot of sacrifices to save.

That is why you have to be careful where you put it.

Investing money is the act that bring you wealth because it is what multiplies your earnings and savings into multiple folds.

You have to do it right for it to happen.

5. Diversify your Income Stream

Relying on one source of income is not good for your finances and even for your health.

Because if anything happens to that source of income, you will have to go for some time without earning.

That sought of situation makes you worry which is bad for your health.

The road to adding more sources of income to your current income is simple: earn, save and invest.

It could be on the stock market, that is if you understand the market very well, or it could be on a side business that you love.

Whichever route you want to follow, it is important that you spend time – a lot of time – learning what you need to know.

These days, learning about a business or the stock market is easy. There are lots of free material online. The major thing required of you is your time.

Once the business starts to grow, repeat the process to add even more income to your income streams.

6. Avoid Borrowing to Consume at all Cost

If you borrow to upgrade your ward-rope or to buy a gadget or even a car, you are headed for a financial disaster.

It is even worse if you borrow at a high-interest rate just to buy things that doesn’t yield value.

When the interests on those loans start piling up, it will seriously hamper your finances.

Avoid it at all cost.

The only reason to consider borrowing is when you want to finance a business or buy an asset.

7. Invest in Financial Education

For you to be able to do something, you must learn about it. Nobody comes into this world a master of everything.

As some point, we all learned what we know. Even the most successful of us.

Invest money and time to learn the things you need to know about money.

Buy books, audio books, go to a seminar, take courses; whatever suits you, do it.

Learn about the stock market, learn how to budget, learn all the financial products and services you can, learn how to achieve financial freedom.

Your future self will thank you for it.

8. Carry out a Finance Health Check

Know where you are with your finances. Some of us are too busy to worry about this, but it’s very important.

At some point in the mad pursuit of everything, it is important you stop and ask yourself questions.

Am I saving enough for my future?

Am I investing enough?

Are my children, spouse, relations secured in case of any eventualities?

Am I spending my money the right way?

You need to answer these questions and much more at least once a quarter.

The answers will give you a clear picture of where you stand with your finances.

If all is good, then celebrate, but if something is wrong, then you fix it.

Note: This article originally appeared at My Naira Journey.

Tags: budget, finances, financial goals, financial products, income stream, invest, Invest money, investing, Investing money, Investment, save, stock market

Category: Personal Finance