Are you tired of living paycheck to paycheck? Stressed by all the debt you’ve accumulated? Interested in living a more fulfilling life? Or maybe you’re simply interested in making wiser financial decisions? If any of the above applies to you, the end of the year is the perfect time to evaluate the past 12 months, make adjustments, and set goals that will put you in a better position going forward. Check out these 4 tips for financial success that can help you better prepare yourself.
4 Tips For Financial Success So You Can Be Prepared
Preparing yourself financially for the future can be a really smart move. Sometimes you just need a little push in the right direction. If you’re not sure where to start, these good financial habits listed below are sure to set you up for financial success in the new year and beyond.
1) Make a Conscious Effort to Get Out of Debt
Though it would be nice to close your eyes or turn your back and have your debt disappear, it simply doesn’t work that way. If you’re going to get to a better place financially, you have to get out of debt.
No matter how much you owe, taking active steps towards reducing it can:
- ease your stress
- boost your income
- help you accomplish your goals
To make a conscious effort to get out of debt you should take steps like:
- reviewing your credit report
- reviewing your current income to see what you can reasonably afford to pay each month
- contacting creditors or lenders to set up a payment arrangement
If all you can afford is $50 a month on a $5,000 credit card bill, it can be better than nothing. It’s more than the minimum payment and will eventually help you to get out of debt.
2) Create an Emergency Savings (Cushion)
From a car or home repair to the loss of a job or health issue, very few Americans are actually prepared for an emergency or unexpected event. This causes them to turn to loans and credit cards to get out of a jam which only adds to their debt. While there are different opinions on how much you should have tucked away for a rainy day, starting with at least $1,000 in a savings account is recommended.
There are digital platforms like hicharlie that can be helpful. You can use it to set and stick to your savings goal by breaking it down and setting reminders to help you stay on track. For example, if you want to save $1,000 by June 2020, you’d need to put away approximately $167 a month.
3) Look Into Another Income Stream
Looking for various income streams is another one of the great tips for financial success. At this day and age it is important that you don’t put all your eggs in one basket. Having multiple streams of income provides financial stability and helps you accomplish your financial goals faster.
The good thing is, there are plenty of ways to earn extra money on the side without having to work long hours or having it interfere with your full-time job.
- start a blog
- answer surveys for cash
- write product reviews
- use your car for a rideshare service
- deliver meals or packages
- sign up for sites where you can get paid to test apps
As you generate more income, try not to spend it. Instead, add it to savings or apply it to paying down your debt faster.
4) Invest in Your Future
Did you know that less than half of American adults are prepared for retirement? While it may not seem like something important when it’s decades away, most end up putting it off until it’s too late. The sooner you start saving for your future, the better off you’ll be financially when you’re ready to retire.
Look into retirement accounts offered by your employer and increase your contribution. You can also consider opening a retirement account separate from your employer’s. IF you start in your 20’s you could essentially save as little as $20 a week in an interest-bearing account and be ready for a life of fun and relaxation in your golden years.
It’s Your Turn! Concluding Tips for Financial Success…
Though it’s true that money can’t buy you happiness, when you mismanage the funds you have, it makes life a lot more stressful.
Money trouble is one of the leading causes of stress, burnout, and even relational troubles. If you want to be happy, reduce stress, and live (instead of just surviving), then it is imperative that you start making financial steps such as those described above to put yourself on a road to success.
Have you made any steps toward preparing for the financial success of your future?
AUTHOR LaTia Longuemire
My name is LaTia Longuemire. I enjoy writing, singing, and cooking in my spare time. My passion is helping others. At this stage in my lifetime, I'm primarily focused on my children. They are everything that keeps my world spinning.