How can we live a life that is more prosperous? Some people manage to buy their own house and open their own business by the age of 30,...
How
can we live a life that is more prosperous? Some people manage to buy
their own house and open their own business by the age of 30, while
others are still trying to figure out their financial situation. To help
you out with your financial situation here are some tips to bear in
mind.
1. Children are expensive
Most
people believe that we should have children in our early twenties or by
the age of 30. But raising children is quite costly. For this reason,
it's better to have kids when you are completely ready, and that
includes your finances. It's also wise to prepare a 'financial cushion'
with your partner before your family gets bigger.
2. It’s not embarrassing to ask for a promotion
If
you've worked in the same position for more than 3 years, make your way
up the career ladder by asking for a promotion. This is a good step to
improve your financial situation. If you are refused a promotion several
times, it's time to change your job, or improve your professional
skills.
3. It’s more profitable to rent a house than buy it
While
we like to think that investing in real estate is a good decision, rates are still high. To set the picture for you, imagine this
scenario: Take a house that costs $100,000. It's rental is around $550
per month, making a yearly rental of $6,600. Subtract the $6,600 from
the general cost of the house. Then put the remaining amount into a
savings account with 7% interest. So, your yearly income with it will be
$6,752, which will be more than enough to pay for another year of
rental. Apart from that, you also won't need to spend money on
maintenance, taxes and furniture. So, before making a decision whether
to buy or not, consider all the expenses and choose a more profitable
option.
4. Invest in your health and education
It's
not easy to achieve success when you are not living healthily. It's
therefore important to take care of yourself. Sleep well, go on a
vacation at least once a year and eat well. Having a good education will
also open a lot of doors helping you to climb your way up the career
ladder.
5. Don’t invest in something you don’t know well
Prior
to dealing with financial issues make sure you have a cold, sober and
calm mind. Investing in dubious projects can cause you to lose a lot, if
not all of your money. Prior to making an investment consult experts
beforehand to have a sensible assessment of the project and its chances
of becoming successful.
6. Don’t borrow to pay old debts
The
concept of taking a new loan to repay an old one has become a popular
trend. But repaying an old debt by borrowing from someone else will only
lead to a vicious cycle. It is better not to be in debt at all. But if
it happens that you have a loan, stop yourself from buying something and
save the money to repay the loan without borrowing further.
7. Stay connected with your friends, and meet new people
It
is said that 'a friend in court is better than a penny in the purse.'
There is much truth to this. Sometimes, connections are more important
than money.
8. It’s more efficient to buy shoes and clothes of good quality
As
with many other things, clothes of good quality will serve you much
longer than cheap clothes. It's therefore more effective to spend your
money on durable things. To save you an extra penny, purchase good
quality items during the sales and try to make a list of necessary items
you need, waiting to buy them during this time.
9. Avoid impulsive purchases
While
they do bring temporary joy, impulsive purchases can be problematic.
Instead of buying another blouse, try to find joy in something else.
10. Eat and cook at home
While eating at cafés and restaurants is enjoyable, it's a lot cheaper to prepare your meals at home.
Source: Unknown
#moneysavingoptions #money #financials