Nobody ever wants to struggle financially in life, but the sad truth is that many, many people go through life working hard, spending their money and then feel guilty about how they’re handling their money. In this article, we’re going to highlight the three basic tips for succeeding financially in life.
1. Know what triggers you to spend
While it’s believed to be more common in women than in men, emotional spending is the one thing in life that causes people to over spend and even rack up credit card debt. If you’re prone to spending double lattes or go on a shopping spree, take the time to ask yourself what triggers you to do so. It could be stress or it could be because you are depressed. Whatever it is, make sure you’re aware of it.
2. Prioritize debt payments
If you have payday loans or credit card debts, prioritize getting their payments because those debts have ridiculously high interest rates and your hundred dollar debt could quickly balloon into thousands of dollars. If you’re having difficulty making monthly payments, talk with your creditors about a monthly payment schedule that won’t affect your monthly expenses.
3. Spend less than you earn or earn more money
If you want to sleep better at night, there are really just two ways to become financially free – either you spend less than you earn or you earn more money. Either way will cause you to have extra money that you can save to invest in financial instruments like bonds, stocks, futures, etc. To help you curb your spending, keep a spending diary where you list what you spent on during the day. You’d be surprised at the number of unnecessary expenses you incur.
The tips we mentioned above are the most basic tips yet they are also the most difficult to follow. But with persistence and consistent effort, those tips should become second nature to you.