If we are honest, most of us live from paycheck to paycheck trying to stretch the limited amount of money that we have in multiple ways. Hoping and praying that one day we will finally receive that raise or an unexpected check in the mail! Why put our financial futures in the hands of other people? Here are some tips to help you start building your own financial future:
It sounds like common sense, but there are way too many people who don’t even have a savings account. Having a savings account is important for so many reasons. You never know when an emergency may arise in which that money will be needed. A great idea would be to have at least 6-8 months worth of living expenses saved up. You never know what could happen, and you should always be prepared just in case! Always better to have and not need than to need and not have! Set a goal, and put away some money from every paycheck!
2. Live Within Your Means
This is where a lot of people have a hard time, however it’s pretty simple. Live within your means! Don’t buy things you can’t afford!
3. Create a budget
Make a list of all of your bills and all of the money that goes out on a monthly basis. Then, list all of the money that is coming in through all sources. Create a budget that works for you and determine how much you will spend out a month on things like food, clothing, entertainment, etc. Be sure to try and stick to this budget as much as possible, so that you do not find yourself overspending.
4. Reduce Debt
Make a plan to start paying down those credit cards and any other debt you may have.
5. Get Your Credit Report
Be sure to get a copy of each of your credit reports every year to stay on top of your credit. You also want to make sure that there is nothing fraudulent on any of your reports. All three credit bureaus (Transunion, Experion, and Equifax) will give you one free credit report a year, so take advantage of that. Get them all! One may contain something that the others don’t.
6. Consolidate Debt
If you have high interest credit cards, consolidate them onto a lower interest credit card. This will save you a lot of money.
7. Other Streams of Income
You can always create other income streams to generate extra cash. There are so many ways to make extra cash these days, like: doing ride share, selling your unused items online, doing a yard sale, etc.
8. Turn Your Hobbies Into A Business
Most of us have hobbies that we love to do in our spare time. Why not turn that hobby into some extra cash. For example, if you like to make bracelets in your spare time, why not start selling them for a profit! Your hobbies just may be the start of a very profitable business.
Investing your money is a great way to make it multiply for you over time. You can sometimes double or even triple your investment. Research different options (such as stocks, bonds, and CD’s) to see which would work for you.
10. Start A Retirement Plan
The reality is that there will probably be limited or no money by the time you retire. It’s a good idea to start your own retirement fund to insure that there will be something available to you when that time comes. Check with your financial institution on retirement funds that are available to you.