Hitting your financial goals will take focus, hard work and time. The more thrifty you can be as you strive toward your goals and the more opportunities you can capitalize on to increase your income, the less time you will need.
Building wealth takes time. It also takes self-discipline. Waiting until you can afford something you really want, rather than paying for it with a credit card, increases your enjoyment of the special item or event because you own it with no strings attached.
The College Investor says that by waiting and planning for a purchase, rather than working overtime or picking up a side hustle to pay for it, you can own it free and clear. Not having credit card debts or a car payment is a great feeling. From small items to big-ticket purchases, paying cash means freedom.
There is no greater personal financial choice than to live within your means. Yes, this means that you may have to forego some adventures for now, get a roommate, live in a smaller place or drive your old car for another year. However, by not spending more than you make you can build up a financial reserve that can reduce your risk in the event of a job loss, illness or accident.
Financial education can be quite different from professional education. You may go back to school for degrees or certifications that can advance your career, but learning good money management can be as simple as taking a cooking class or learning to sew. Your neighbor, grandmother, parent, or good friend can teach you simple ways to reduce your daily expenses and put away more of your hard-earned cash.
In connecting with people who are willing to teach and being open to their skills, you can constantly learn ways to live within your means. According to Daymond John’s Success Formula, education will allow you to network, channel your energy, find mentors, and develop yourself.
Use a Multi-Step Approach
There are many ways you can save money and several options for making more. Take care not to get too bogged down in only one direction. For example, you can buy your clothes at a thrift shop. However, you can also pick up knick-knacks at the same store, clean them up and sell them on eBay. You can stop at the grocery store and hit the deli for supper instead of eating out at a restaurant that you can’t afford yet, but you can also work as a Dine and Dash delivery driver and pick up someone else’s groceries or deli order as well.
As Work From Home Happiness explains, thrift is useful, but thrift is only one part of the plan; you need to be willing to pick up a side hustle. While others are eating at restaurants, out partying or spending money they don’t have yet, you can be earning cash to buy what you want, no strings attached.
Knowing your financial goals is a huge first step towards building a financially sound future. When do you want to retire, or do you plan to phase out of the working world? Will you be stationary or travel? All of these factors can help you customize your financial decisions moving forward.
If you want a little extra help getting your finances in order, check out our various education offerings!