![]() When should you focus on paying debt ASAP vs. Always remember to pay yourself first and this comes from almost every financial expert. Find out what you don’t care about and things you do spend on, and then cut back based on that. ![]() You don’t need to track everything you do down to the last cent, but cut down the things you don’t care about. Ideally, you can save 20% or even more, but there will be a 20% guilt-free spending piece. He says you can be rich by just saving 10% of your income every month. This puts your income into four categories which are fixed cost, investments, saving goals, and guilt-free spending. The other approach is from a book by Ramit Sethi called I Will Teach You To Be Rich, where you’ll find the conscious spending plan. This approach can be done for those struggling with debt and may help you be debt-free over time. One is the Dave Ramsey approach which is to live off beans and rice and track every cent. ![]() There are two schools of thought whenever you look at budgeting. This budget can go to your savings and may help you reach your financial goals whether it’s to invest the money or buy assets.īudgeting can be difficult and can be tedious for many people. If you have a good system, then you can still maintain your lifestyle without having to worry too much about your finances.Īnother system you can try to implement is to set aside $10 per day which will allow you to have $3650 each year. Creating a system to monitor your expenses and how much you earn from your job or through assets is important. Eventually, these expenses can add up and may make it difficult for you to reach your financial goals. If your lifestyle includes going out every weekend, then this equates to additional expenses. When planning to meet your financial goals, you may need to think about your lifestyle. How to ensure you’re meeting your financial goals If you’re able to earn more money from your assets while covering your expenses, then that results in cash flow which will allow you to be financially free. For example, if you own real estate assets, those assets should be able to cover your expenses in paying your bills and lifestyle. You can also have financial freedom when you have all your assets combined, and pay for all your expenses and lifestyle. This is so you have the ability to work zero hours and still make money. It can also mean having enough assets to make your money work for you. Financial freedom is being able to do the things you want to do without having to worry about money.
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