Goal Setting – To reach any destination, you have first to set the destination point, which we like to call your goal. Now you’re not going to get to your goals overnight; it will take time and strategy; however, you will arrive there. So, whether it’s buying a home, purchasing a new or pre-owned car, or starting a business, you must first set the goals on what your desired outcome is. For a car, how much have you budgeted to spend? What type of car fits your budget? Can you afford monthly payments, and if so, exactly how much? How much does it cost to upkeep your vehicle? The answers to questions like these will help you to manage your journey towards your goal more efficiently.
Make a budget – One of the main reasons people fail to achieve their financial dreams is because few people recognize the importance of creating a budget and sticking to it. For most people, budgeting sounds like an arduous task, a heavy burden. But in all actuality, it’s not; instead, it’s the opposite. Budgeting is the most freeing experience. When you budget, you live within a specific parameter. You become freer in that you are following a pattern proven to reward you with guaranteed results. Also, this process will help you to exercise discipline with your finances rather than being an emotional splurge, something that always ends in enormous wealth.
Get Control Over Your Debts— First off, there are good debts and bad debts. Examples of good debt are a home mortgage (one that you can afford). Rental property mortgage can be good debt, especially if you are earning a passive income from your tenants, and your property is fully occupied. Bad debts are typically unsecured debts, which means that the debt is not secured by a real asset such as a home, land, or an automobile. Credit cards are the greatest example of bad debts. While our culture insists on getting as many credit cards as your wallet can hold, actually limiting yourself to three to five cards is most effective. Avoid department store credit cards as they are most capable of causing you to spend unnecessarily. The rule of thumb is only to hold debt that makes you money, not take it away.
Invest – Investments can cover many different areas, as there are many ways to invest. For example, you can invest in a retirement fund such as a Roth IRA, a 403 B plan, or a mutual fund. For the most risqué individual, you may want to dive into stock trading, bitcoins, or binary options. The point here is that you will never move beyond your present financial status until you begin investing. Investing is a sure way of securing a strong wealth portfolio.
Insurance – Having an insurance policy in various areas is one of the best ways to secure you from having to pay out of pocket expenses from sudden tragedies or unexpected losses. For example, the average funeral expense is between $10,000-$12,000 dollars. For most people, that can be a burdensome expense to incur. We always encourage people to purchase life insurance policies. It’s best to buy plans at the age of 18, as the insurance premiums are at its lowest for late teenagers and young adults in their early twenties, as they tend to have far fewer medical conditions. If you have an asset, whatever it is, furniture, an apartment, a car, a motorcycle, or even your children or parents, always protect your assets with insurance.
Maximize Your Employment Benefits— Many companies offer employees a matching plan for retirement. What that means is when an employee contributes $10,000 annually to their retirement plan, the company will match with a $10,000 annual contribution. Thus, one’s retirement plan experiences significant growth in a short amount of time. Remember that you must carefully complete a budget and stay within your budget, keep your debts low, and consider the most that you can invest in and get a matching contribution from your employer. It’s always best to take full advantage of all of the employment benefits your employer offers, especially those of monetary value.
