- Quit buying sh*t you don’t need, don’t want, never think about, and won’t use in the long-term. Too many people have stuff sitting around their homes that have gone unused for years. A great example of this is what all can be found in our closets. There are probably many pieces of clothing you never wear, won’t ever wear, and don’t care about.
- Don’t live in homes you can’t afford without more than one primary source of income. Many people move into homes, apartments, or townhomes without additional sources of income. Always have multiple sources of income; that way, if one source is eradicated, you’re not screwed and don’t have to remove yourself from your living situation. Maintaining multiple sources of income grants you breathing room when sh*t happens.
- If you barely drive, rethink your car purchase. Do you need a car payment if you live in a walking city, work remotely, or live close to work? Imagine what you could do with your money if you didn’t have a car payment. How much more freedom would that add to your life?
- Develop and maintain your rainy day fund. Always have a minimum of three months of emergency savings, but the ultimate goal is to have at least one year of emergency savings stocked away. Why? One-year emergency funds will make you bulletproof from global and personal economic fluctuations.
- No need to impress people. If you have the money, it doesn’t mean you need to reveal it. And if you don’t have the money, it doesn’t mean you need to reveal a false financial profile. Materialism is wasted effort, time, energy, and money. Buy only what you genuinely desire, not what you feel you need to show off to others. And before you buy, always question the reason behind it. Rethink every purchase.
- Live with roommates, family, a partner, or friends. When you have others to split your financial load, this provides you an opportunity to save more money and slash your expenses. It’s a win-win situation, and you get to have people around.
- Consistently invest. Never cease investing — even when the markets are down. Know this: the markets will always rise again. Investing will make your money work for you 24/7 until, over time, your money makes you enough to afford a living off the interest.
- Cut down time watching tv and invest more time into creating passive income streams. The more passive income you create for yourself, the less dependence you will have on traditional income sources. You will also grant yourself economic immunity by maintaining multiple sources of income.
- Live somewhere cheap. If San Francisco and New York are considered pricey to you, maybe you should reconsider living there along with similar areas. When you live in these zones, you can guarantee that a significant portion of your income will go to housing. If you’re okay with this, go for it, but many people struggle to maintain a decent lifestyle living in these places.
- Educate yourself. Never stop learning about personal finance, investing, and economics. The more you know, the better you do. When you have access to knowledge and implement it, the sky is the limit for your finances.
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This article is for informational purposes only. It should not be considered Financial or Legal Advice. Not all information will be accurate. Consult a financial professional before making any major financial decisions.