There’s so much financial advice in the world it’s amazing more people haven’t yet found financial freedom. However, no matter how much advice you get, how many budgets you make, how many lectures you attend, there is no substitute for the simplest kind of financial advice. It’s so simple, in fact, you’re about to feel a little silly that you didn’t realize how invaluable this advice was until now.
Don’t Depend on One Income
If your life involves depending solely on one income, you’re bound for financial disaster. The wealthiest, most financially secure people in the world understand that relying on a single income is perhaps the worst financial mistake you can make. Make investments. The more you invest and the more diversely you invest, the more income you have. You should always have a backup plan, and a backup for your backup plan.
Stop Buying What You Don’t Need
Too many of us are guilty of buying what we don’t need – particularly when it’s out of your price range. The simple truth is that one day you’ll end up with a house full of items you don’t need and the need to sell the items you do need. You only need three things in life; shelter, food on the table and your loved ones. Since you can’t buy your loved ones, focus on paying for things you do need such as shelter and nutritious food.
Saving the Right Way
If you’re like most of the world, you save what you have left over after you’ve spent your money. This is not how to save. The right way to save is to spend what is left after you contribute to your savings account. Your savings should be considered a non-negotiable expense each month. You save your money and you work with what you have left over; not the other way around.
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