Disclosure: I am not the best in saving and having the best ways for financial improvement. But I’ve done my personal research that most of us can relate to and stuff that are usually overlooked. None of these are too easy nor too difficult. So here we go.
1. Begin a side business
One of the ways in improving your financial life is besides a having your regular jobs is by starting a business. On this blog I’m not going to tell you what business is for you. You may want to do an intensive research of your own. Since there are a lot of factors to consider, like your passion, the capital, or even the people involved in starting your business. You may want to read this article called 101 Best Side Hustle Business Ideas to Start While Working Full-Time to get those ideas going.
2. Have an emergency fund
As it says. The fund is used for emergency purposes. One of those ways to improve. The most simple computation to know how much emergency fund you would need is, 1 month of your salary x 6. So that means 6 months of your worth of your monthly income. It is difficult for most of us who are working on a regular job, but the thought of planning to have an emergency fund is a good start.
3. Plan your purchases strategically
It is normal to over spend if it is really needed. But how do we plan our purchases strategically? They key is planning ahead before you spend. For example, you earn your salary once a month. Exclude the bills that you regularly pay and assess carefully if you really need to buy this gadget, clothing and etc. Can you survive one month without it? Perhaps you can move it in the next 2 months in purchasing it. Assess carefully the need of what you wanted to purchase.
4. Track (take note and organize) your expenses
Most of us would just keep all our cash in our wallets and leave some of our money readily available on our ATM cards. Making it very easy for us to spend. I personally suggest keep a notepad or organizer where you can list all of your expenses. Or if you feel extra tech you may want to download an app on your phone like the ones from this article: 12 Free Apps To Track Your Spending And How To Pick The Best One For You. Then at the end of the week, assess your expenses and try to improve it on the following week.
5. Cut down entertainment budget
Before we dig into entertainment budget, consider what falls into this category. Some of the examples are: magazine subscriptions, extra cable channels, movie theater tickets and the list goes on. Review your monthly expenses. Separate all of those that are monthly recurring. Study carefully and ask yourself if you really need those stuff for entertainment? Perhaps there’s a way for you to get it for free over the internet.
6. Plan your financial goals (both short-term and long-term ways)
A short-term financial goals are more immediate and it could be the purchase of a travel package, household appliances, minor home renovation, saving for a car, or even purchasing a mobile phone or gadget. Long-term goals are usually classified as those of more than 5 years. Best example is a good retirement plan or life insurance. Also it is important to know if your short-term goal will hugely impact your long-term financial goal.
7. Find a Side Job
Earning doesn’t stop at your salary. You can also add up some jobs like tutoring, baby sitting, or even graphic designing. The internet is the best place to look for a side job. Try reading: 99 Side Hustle Business Ideas You Can Start Today. You’ll be surprised there’s a lot you can find but it still depends on how eager are you.
8. Make ways to keep an eye on your debts
It may be your salary loan, housing loan or an outstanding balance in your mobile phone plan or house bills. Those are still debts. A debt is normal but usually pulls down a person’s financial improvement. Prioritize each debt and take note of until when are you going to pay it, or which ones needs immediate payment.
9. Start reading finance blogs
Reading is a great way of educating yourself. If you’re totally clueless, consider the internet as your friend. Finance blogs will help you out with financial ways you don’t understand. It’s also a good source for you to get ideas on how be better in budgeting, what ways you need to cut down and etc.
10. Pay down a huge debt
Saving money may be hard. But being in a huge debt is more difficult. Though there’s no such thing as “debt-free” especially for regular employees. But there’s a way to lessen that. Review what is your biggest debt and how long are you going to pay for it. Perhaps if you already committed to cut a few of your expenses, this means there’s a way for you to save more and pay extra on top of what you’re paying for your debt. The bigger the amount you pay, the lesser the time you have to be in debt.
11. Consult an accountant
A good accountant will understand how to save you money. They know the best to operate on your budget and make you understand on how to reduce your financial liabilities.Also, they can make recommendations. If you have a friend who is an accountant, perhaps you might want to do a little catch up with them 🙂
12. Follow the 50%/30%/20% rule of income
It’s a proportional guide that can support your spending in conformation with your savings goals. Where it shows 50% of Your Income – Essentials, 20% of Your Income – Savings, 30% of Your Income – Personal. You don’t need a high income to follow the 50/20/30 rule; anyone can actually do it. This percentage-based system, the same quantities apply whether you have entry-level salary or higher. Read more on: The 50/30/20 Rule of Thumb for Budgeting
13. Find a great financial counselor and learn him/ her
Either you find someone on the internet or podcast and listen to them or perhaps do your personal research. Maybe the best financial counselor are your parents or someone from the family. A successful colleague who recently started and business and raising a family or a friend who has unique budgeting ways. All depends in your eagerness.
14. Invest in stocks
You don’t have to be an expert just to involve yourself in the stock market industry. Again, your internet is your friend and reading is very helpful. TIP: Do not get emotionally involved with your money.
15. Study successful people
At this point of your adult life. You may have known a lot of successful people in different kinds of industry. I suggest find a person of inspiration in a chosen field (eg. Beauty, Fashion, Culinary or Technology). Know their success stories, attitude and perception in life. Sometimes what best sets a person apart from all struggles (financial or not) is having the right attitude to begin with and for them to retain.
Do you think this helps? Please let me know in the comments below or contact me here, and be sure to leave any requests for any posts you’d like to read here on my blog! Please feel free to share this blog. Thanks for reading! 😉