No matter how dire our money situation, it is possible to work your way out of nearly any financial predicament. Even the most daunting financial goals, like saving up to own a home or building our retirement fund, can be accomplished with time and dedicated effort.
If you are worried that you are at too late of an age or stage of life to achieve financial success and stability, it’s time to question this self-limiting belief! Try adding these five financially-forward practices to your daily habits and observe the way you progress toward better financial footing:
Assess Your Budget: First break down your monthly income and expenses. Once you take this step, now you have the ability to set a budget. A solid rule of thumb is to spend fifty percent of your after-tax income on necessities, like food and electrical bills, and under thirty percent on discretionary expenses, like personal wants. Push yourself to save as far above 20 percent of your income as possible for your future goals. If you see additional opportunities to cut spending or expenses, you will improve your ability to save and succeed.
Spend Strategically: An important part of financial progress comes from making the most of the money we have. If you are spending your money and not saving or are borrowing more than you can pay off at the end of the month, you are probably slowing down your financial progress. Thankfully, we can still overcome overspending-related setbacks and achieve stability. Disciplined spending is a guaranteed way to grow your savings and security. Once you have your foundation, you can move on to your larger goals for your future.
Keep Debt Down: When we borrow money, we have to pay it back with interest. Set a goal to pay down your debts. Without interest taking a chunk out of your income, you will make better progress toward your financial goals.
Automate Savings: Set up automatic withdrawal from your checking to your savings account. Schedule these transfers for times right after you are paid. This way, there is no chance of you accidentally spending funds you meant to save. You will be moving toward your financial future, without even having to think about it!
Increase Earning Power: If you are eager to make major progress toward your goals, consider adding a new source of income to your plate. Diversifying our sources of income is a great way to not only expand our skillset and professional networks, it is also an excellent way to fuel our financial progress. An increase in income can make a major difference in our ability to repay our debts, save for a purchase, or feel reassured that we are prepared for a financial emergency.
Ready to make up for lost time and meet financial goals that will set you up for future success? Visit the Syncis blog at www.syncis.com/blog to learn more.