Don’t we all want to be financially flexible? Have enough money to invest and live lavish lives without any repercussions? Well, incorporating these financial habits will help you become financially flexible at the same time, move you up the economic ladder steadily.
- Use the 50, 20, 30 budget rule
Once you receive your salary at the end of the month, please do not just squander it on things that do not matter. Use the 50-30-20 rule to split your funds. Of course, bills have to be paid, but remember that without investing, you will end up borrowing from your affluent friends who invested, once you are old. Spend 50% on essentials like bills and groceries. Also set aside some cash for clothes. Allocate 30% on wants then the remaining 20% on investments. However, you can discipline make a sacrifice and use 30% on investments and spend the remaining 20% on wants.
- Reduce your expenditure
Most of the times, the things we want are never necessary. Also, some items in your grocery list last longer than expected. Consequently, you may have to wait until they are depleted before getting new supplies. Rather than spend that money on wants, how about you increase the investment kitty?
- Save some more
You will never go wrong with saving your money. Open a savings account and keep a portion of the investment cash in it. This you can call your emergency kitty, for instances when you urgently need money and payday is far. Any time you get a salary increment, add the raise to the savings account. The good thing about savings accounts is that you enjoy interest rates on your savings.
- Track your expenditure
The best way to go about this is to write down everything you use your cash on. Once the month is over, calculate the total and see how much you spend on necessities and wants. This will help you adjust your expenditures
Benefits of Investing
Whether you invest in the stocks market, forex exchange, or real estate sector, you are bound to enjoy several benefits. For example:
- Your retirement package is sorted out – When everyone else is depending on the regular retirement plan, you will enjoy extra perks, which will allow you to do as many things as you wish
- You grow more wealth – Depending on what you invested in, the venture will bring in more money, then provide provisions for expanding the business
- Financial security – In case you lose your job, the investments will keep you on your feet until you can get another job. Better yet, you can build your business and experience financial security
- You beat inflation – Every year, the price of items increases. If you invest your funds and garner at least 7% on the investment per year, you will beat inflation
- Meet your goals – Do you have a set of goals that you cannot achieve due to restricted cash? Investing will help you achieve your goals without borrowing money from a bank.
Summary
So there you go! You can make your future brighter and less stressful by investing your funds in the right place. Just ensure that you get an accountability partner, who will help you stay on course.