8 FINANCIAL TIPS YOU SHOULD KNOW

1. Invest Ways

This is a crucial tip everyone should be keen on since investing your money requires you to do due diligence on where you keep your money. Also, investing is not scary as people think, it requires risks but in the long run, it's worth the risk.

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Investing doesn't require much money since you can start with as low as $1oo. In addition, you can buy stocks, crypto, government bonds, mutual funds or have an emergency.

Also, it's crucial to invest money you are to lose if anything goes haywire; however, stay positive and seek advice from an investment expert before you invest.

Investing allows you to grow your money and build your wealth. Moreover, looking for educative and certified investment advice is essential if you decide to get ideas online.

 

2.   Have a Side Hustle

It is crucial you have several streams of income if you want to have financial freedom. Most millionaires and billionaires around the world have several streams of income. Everyone should aspire to live their dream life and make it a reality. Having such a dream, one should find multiple ways to increase their income by having a side hustle. Having multiple income streams does not mean you have to work multiple jobs. There are several ways you can make money that requires no startup capital.

1. Start a blog, and you will earn money through Google ad sense and affiliate marketing.

2. Sell photos taken on your phone on Shutterstock or Adobe Stock.

3. Sell creative graphic designs, resume templates, word press themes on places such as creative marketplace or Etsy.

4. Start a YouTube channel.

5. Participate in online paid surveys.

6. Start dropshipping using Shopify.

Those are some examples of simple ways you can earn passive income with minimal effort.

 

3.   Create a budget

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It is crucial to have a budget if you want to have a secure financial future. In addition, having a budget allows you to know how you are going to live and don't go over budgeting goals. Budgeting allows you to manage your spending mentality. Also, it will help you be satisfied that you are not wasting your money and grow your investments and savings. Sometimes it can be difficult to evade things that distract you from your budget goals; the trick is to learn how to avoid and deal with them. Ask yourself questions such as; when am I most likely to spend money? How do I react when I see things that trigger my spending? One piece of advice: stop buying things you cannot afford and have no practical use. Avoid spending more than a third of your income on rent find a place that can fit that range.

 

4.   Pay off your Debt

1. It is essential to be out of debt for a tremendous financial journey. Furthermore, there are good debt and bad debt.

2. Good debt generally has a low-interest rate and is used to purchase things that go up in value such as; mortgages.

3. Bad debt has high-interest rates and buys things that decrease in value, such as; consumer debt, car loans, etc.

How to focus on paying debt

1.  Avoid getting into more debt, especially if you are not sure you will repay it.

2. Put a certain amount of income towards paying the debt.

3. Prioritize paying back the smallest debt you have first and commit to paying other debts.

 

5.   Be Motivated

Motivation is since it allows you to succeed in significant steps of your financial goals. One needs to know why one wants to control their finances. You need to ask yourself if you are saving up to invest or buy something. In addition, asking yourself if you have any money habits you want to change can be a good factor in your motivations for financial freedom.

Your reasons for controlling your finances should encourage and motivate you to be consistent when developing good money habits. Always remember that consistency is key. The situation with money is different for everyone and changes constantly. Sometimes it isn't easy to commit to all these stages; however, it is okay if it is not that often. It is crucial you educate yourself by watching financial videos on YouTube and reading articles or books that will motivate you.

 

6.   Track your Expenses

This is a crucial financial tip, and you have probably come across it from financial gurus around the internet. Almost all of them will tell you to track your expenses. If you can track your spending, bravo, good job, you are on the right track. Furthermore, tracking your expenses builds your financial future since it puts your spending in perspective.

Ways to track your expenses

1. Note down your total income and outgoings. Make sure you track what you spend from your income.

2. Use money management apps you can download from the play store to track your expenses.

3. Create an excel spreadsheet where you can enter your figures to what you can budget for.

 

7.  Open a Savings account.

Photo by Towfiqu Barbhuiya

While earning it is crucial for you to open a savings account in case you have a financial emergency. A savings account can help you live comfortably without any financial struggles since your savings can significantly help in such situations. Some financial struggles pop up and might require a large sum of money.

Rather than getting a loan, an emergency fund from your savings would help you deal with such situations.

There is a rule that you should have 3-6 months' worth of your outgoings. Therefore, if you spend a specific month on rent and general bills, you should have 3-5 times that amount of savings that is accessible. However, you can still have a little more than that, and it's okay since anything is better than nothing.

 

8.   Have a retirement plan

Having a plan for your future as a young person is crucial, but sometimes it might seem tedious and unnecessary. It is advised for one to start preparing for their retirement early. An excellent financial tip is that if you want to live a comfortable retirement, you should start contributing early and when possible. Consider contributing to your pension for your retirement. This is a great tip for planning for your retirement.