How many times have you heard your mother say "money doesn’t grow on trees"? She’s right, you know—it takes hard work to earn money. And so, with all the blood, sweat, and tears required to get there, let’s put it all to good use!
Here are 5 ways that can help put you on the path to financial freedom:
1. Set specific life goals. These can be big or small, financial or lifestyle. Create a goal sheet and put it at the start of your financial binder or google drive (wherever you store your important documents). Bonus points if you add some numbers to quantify their attainability — i.e. state how much and by when. 2. Create a plan. No matter how much money you earn, setting a spending budget and tracking where your money is going helps resist the temptation to splurge, which would lead to you eating away at your goals. It’s not that an occasional splurge may not be worth it, but if you’ve planned a buffer for it then the future guilt may impact your mental well-being. 3. Pay off debt. Credit cards and loans could be obstacles to a financially secure life because the interest rates will just keep piling up if you leave your dues with the bank unpaid. Besides, getting rid of it altogether may even help curb your spending because you won’t be tempted to spend beyond what you actually have sitting in your bank account. 4. Start investing. These days, there are plenty of accessible asset classes ranging from the stock market to cryptocurrencies. Ideally, you’d have a diversified investment portfolio — and if you make monthly contributions, you can ride out the peaks and dips along the way. Over time, the magic of compound interest will work itself and thereby grow your wealth beyond the rate of inflation (leaving you better-off, net-net). 5. Contribute to a Retirement Plan. Many employers allow you to enroll in a retirement plan that will allow you to benefit from contributions from their side too. *More in another blog about how to navigate retirement plans! Having control over how much you spend, what your budget is, and your financial plans in the long-run is empowering because you don’t need to worry about the burden of sky-rocketing debt and financial emergencies. This translates to peace of mind — and who doesn’t want that?