Having total control over your finances can give you an amazing sense of freedom.
However, it takes a lot of discipline and hard work for you to be able to achieve this. In this article, we will share some of the most useful tips that you can start now to live a better financial life.
Build multiple sources of income
Whether it’s through your business, a side hustle, or investing, building your income network can help you secure your financial future. Starting early means you can compound over a longer time period and can take on more risk as you have more time to recover from mistakes.
Grow your savings
Understand your cash inflows and outflows so you can work out how much can be set aside as your savings. It is recommended to set realistic goals and a concrete plan to reach your targets. If you’re not yet ready to make investments, at least have your current affairs sorted.
Avoid bad debt
Bad debt is something that leeches money from you over the long-term, including credit card debt or interest for late bill payments. It is also important to note that too much bad debt can impact your credit score and prevent you from borrowing in the future.
Set aside an emergency fund
Your rainy day fund, which could be around 6 months worth of your living expenses, should be one of your priorities. Even just saving 10% of what you get each paycycle can eventually get you to that target amount.
Live below your means
Living below your means requires suppressing your desires at a certain point. This is probably the most underrated personal finance skill, but one that actually works.
You may be tempted to show off your peacock feathers to keep up with your peers. However, those who enjoy enduring financial success have a propensity to not care about what others think or what others are doing with their lives.
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The Team at London Accountants