Is your financial life a rat race? Do you have a limited source of income and yet the bills you have to pay are enormous? Is financial freedom in your life just a dream?
Everyone dreams of being financially prosperous some day. Surprisingly, only a handful and especially in the third world countries achieve their dreams of being millionaires. Some people are born with silver spoons while others have to struggle to get to the top of the financial ladder.
The good news is that with passion, consistency, and commitment, you can pursue, achieve and surpass your set financial goals.
Well, let us discuss several factors that may help one to achieve their financial goals.
1. Have a budget
This involves the creating of a financial plan on how to spend your income. A budget ensures that you avoid impulse buying at all times. A good budget enables a person to prioritize their financial needs. A budget also ensures that you only spend what you have. It also encourages a person to save for investment.
2. Research and read widely
The phrase ‘information is power’ is very popular. Read materials of people who have climbed the millionaire’s ladder. Pick a few lessons and implement them in your strategy. Take caution because some lessons work best for a certain category
3. Expand your income sources
Quite a good number of people have side hustles while still holding on to their 9 AM to 5 PM job. Others have more than one job while others have several businesses. Some side hustles are quite stressful and may not generate much income. Ensure that they do not take a toll on your health as a result of stress and fatigue.
Competition amongst family and friends may contribute to a financial crisis. Avoid living other people’s lives as this can be strenuous and frustrating in the long run.
4. Invest your money and earn a passive income
Robert Kiyosaki in his book “Rich Dad, Poor Dad” talks about making money work for you. Money should make more money for you. This is possible through investing in the stock market, government bonds, and fixed deposit accounts. Long term investments would include investing in the real estate industry.
5. Avoid impulse buying
We are all prone to this habit. It is an enemy to financial progress and especially when it occurs frequently. Avoid instances or occasions where impulse buying may occur. Avoid carrying debit cards and liquid cash that has not been budgeted for.
6. Debt management
Debts can accumulate to unmanageable levels if not well managed. Taking loans and borrowing money from family and friends is very easy but paying back may be an uphill task. It is important to learn how to borrow only when it is absolutely necessary. If you must borrow, consider factors like the interest rates and hidden charges. Pay back as quickly as possible.
7. Keep off credit cards
They encourage impulse buying and spending money that is not yours. Only use them if there is no other available option. I would encourage the use of debit cards instead of credit cards. Aspire to get out of debt.
8. Live within your means
Spending more than you are earning is a deadly mistake. It may lead to serious consequences such as sinking into debt. Financial constraints may also lead to stress and family breakups. Competition amongst family and friends may contribute to a financial crisis. Avoid living other people’s lives as this can be strenuous and frustrating in the long run.
9. Setting financial goals
It is paramount to have financial goals such as saving more and spending less. You should have both long term and short term goals. Examples of short term goals include saving, paying off debts and creating an emergency fund. Long term goals include acquisition of property and setting up of big business ventures. Always ensure that your goals are SMART. This means that they are Specific, Measurable, Attainable, Realistic and Timely.
10. Have an emergency savings account
Such an account comes in handy when one is faced with an unexpected situation such as sickness, loss of property or death of a loved one. This can be achieved through having a standing order to a special emergency account. Insurance companies come in handy to provide medical covers. Steve Jobs while lying on a hospital bed said, “the most expensive bed is a hospital bed”. Shop for a good medical cover to avoid being drained financially by medical care.
11. Keep off from gambling
Gambling is an enormous menace around the world today. People have lost billions of dollars, with some resulting to suicide after a loss. Others sink all their wealth here and live like paupers as a result of gambling. It can be addictive and hence the need to discourage people from participating. Gamblers waste a lot of money and time in trying their luck to hit the jackpot. Gambling is a sure way to poverty.
Financial freedom is everyone’s dream but only very few people achieve it. Money is good as it makes life very comfortable. Ensure that you work towards achieving your financial goals on a daily basis. Let your money work for you. Invest your every coin and watch it grow daily.
Create a discipline of planning and investing the available income. Invest it wisely. Avoid get-rich-quick schemes as you are likely to lose your hard earned cash in them unknowingly.