There isn’t any magical power to get you rich quickly. It’s all based on some small decisions and the way we life our live which will determine the amount of money you will have throughout the journey. Always we need to plan to make some personal finance decisions which will enhance our financial status & help us build our wealth.
You need to plan and follow some personal financial decisions that will help you in making the rich. It is a long term process to get settled up in lives. So, don’t plan something that can change your lives within a second.
Because we are talking about financial freedom remember to focus on earning and saving and letting the money grow equally. Focusing on a single track will never let you reach your goals.
Investing your both mental and physical abilities will let you reach the target easily.
Below I have putted together some financial decisions will surely Will help you build the desirable wealth and live financially free.
- Have a savings plan in place:
No matter how much money you are making, savings should be your number one goal. If you don’t have a savings plan in place, your finances will get out of control and you will soon find yourself going frustrated thinking why you are broke.
A proper savings plan essentially requires you to put a certain part of your income aside and forget about it. You should also automate your savings to ease the process & not to find any excuse to not save in any particular month.
Living paycheck to paycheck is a bad situation to be in, but doesn’t have to last for long. With serious intent and a proper planning you can fix the that and be able to start saving up for your dreams.
If you need more tips on saving money read this post
- Keep tracking your spending
When there’s a sizable gap between how much extra money you should have and how much you actually have, there’s a good chance that you aren’t tracking your spending.
Without doing this, you’re likely to underestimate how much you spend in certain areas or even to forget some expenses entirely.
If you’re wondering where your money is going every single month, then it’s time to review all your spending habits for the past several months and track your spending more accurately going forward.
- Have Multiple Incomes
Knowing how to make money with any other way other than your day job is important. The main idea behind this is to deviate one portion of your income to your savings and other portion on your expenses.
These personal finance decision will also help you as a back in support for which if you lose your job, you will have in hand the other income source to relay on.
This secondary income source can be anything from online side hustle , a physical business idea or even just a second night job.
- Save an emergency fund
Whether we wanted or not, emergencies happen, and they can get expensive. A temporary expense from income, an unexpected car repair, or medical bill are an example of emergencies that could cost you $1000 or even more.
Even when you’ve been doing well financially, a sudden expense that you weren’t prepared for can bring you back to square one. That’s why you need to build an emergency fund so you’ll be prepared for any potential worst-case scenarios.
- Live below your mean
If your living expenses are too high, then you’re going to have a hard time getting out from the paycheck-to-paycheck life. It’s impossible to get ahead while you’re spending nearly everything you make just to cover your regular bills & grocery shopping.
In this case, you should review how much you spend on your fixed expenses and look for areas where you can save. Start with your accommodation cost, as this is typically the largest monthly expense and is therefore an area where you could save a lot of money by moving to a more affordable area or living with roommates.
- Start Investing NOW
Investing doesn’t mean you have to plan something very big. There are basic investment plans in and around places where you can opt for one and start the procedure.
Stock market investment or any other investment may not give you the right value but we’ll surely not let you down in comparison.
Try to stock your investments in basics so that you may not save all in one single thing and get hooked up.
If you are looking to start investing with small figures then use Acorns app to invest small amounts every day like spare change and see how it grows.
If you want more ideas on how you can start to invest money , then you must read this post
- Purchase With Cash
I believe we all start realizing that online or digital payments are just good at decreasing the savings amount. Online marketing and shopping are very intimidating for all of us
Earlier days were a bit convenient when the portion of savings was a target. We had cash in advance and were allowed to spend a particular portion as was instructed.
Having cash on hand to spend will give you a boundary that should not be crossed & will allow you for better managing your expenses than just swiping your card whenever you need to purchase anything.
- Join Rewarded Programs
There is some daily needs which you can’t skip in your life. Try to make a good deal by checking on with rewarded programs which will help you to save some money for your mandatory expenses.
There are many methods which will help you in saving some income by fulfilling your regular requirements.
Rewarded programs or cashback offers are one way of personal hacks that boost your finance.
These personal finance decisions will help you solve issues and will improve your financial status. Please share in the comments section if you tried any over financial tips and decisions which helped you in your financial freedom journey!