The thought of never having to worry about money again is a dream for many. Sure, while many are living this dream right now, many of them had to work hard to get where they are today. Since they are humans and so are you, why can’t you reach the financial freedom that they have reached?
If you have been dreaming of becoming free with your money, here are five tips you will want to take to heart when it comes to never having to worry about money again:
#1 Ignore the fancy
While it’s tempting to purchase that $40,000 truck, do you really need it? Let’s think of this one for a second. Let’s say that you just take that $40,000 and put $10,000 into a car and the rest of the $30,000 into the stock market. If that $30,000 made 8% for 30 years, you would have more than $300,000! The lesson here is to really think about the money that you can invest and not the things that you can buy. Keeping up with the Joneses is a thing of the past, so make sure you stick to the basics that you can afford.
#2 Spend money for tomorrow
Since we already touched upon the stock market, you have to understand that every $1 you invest is going to be $10s of dollars in the future. Yes, you’re probably thinking, “So what? $1 turning into $15 in 30 years really doesn’t appeal to me.” Well, if we scale that $1 and turn that into $10,000s, you could only imagine what could be sitting in your account, right? The lesson here is to make sure that you think of every dollar you spend. Think about tomorrow, your retirement, your children and more. Bringing up to that fancy point again, do you really need that item?
#3 What are you making?
Money doesn’t grow on trees and we know that. If you’re only making $10 an hour and there’s no room to grow, you’re probably not going to be living a comfortable life. Take a good look at your career and try to envision it 10 years down the road. How much will you be making? Will you have enough money to set aside for retirement? Remember, you have to make sure that you setting aside some money every month for your future, and no matter how old you are, it’s never too late to go back to school!
#4 Avoid the credit
Try your best to cut up the credit cards and deal only with your debit or checking account. By doing so, you won’t have to worry about unexpected bills. Every swipe of your card can add up fairly fast when you use your credit card. Factor in that 20% interest and you could be paying that bill for a long time. Remember, if you don’t have the cash to buy it, you can’t afford it!
#5 Build assets
I think you’re getting the message here. If you’re not building assets, you’re living a “rented” lifestyle. Let’s face it. No one cares about your $100 pants, $250,000 house, $50,000 car and $250 shoes. If it makes you feel better, what are you going to be thinking 30 years from now when your brokerage account shows $1,000?
Building financial freedom isn’t hard at all! The earlier you can start, the better it’s going to be for you. Try your best to start investing, buying the things that you need and life a basic lifestyle. By doing so, you can live poor today so that you can live rich tomorrow. Best of luck!
Author Bio: Miranda C. is from How Much Is It (HMII) Here, consumers can find out what many things such as pets, surgeries, plumbers and more are going to cost!
- MIT looks at boosting research ties with India
- Checklist before currency exchange