Five things keeping you from financial success
Becoming wealthy isn’t just the American dream; it’s more or less the “everybody” dream. We all want to live happily and comfortably. But then, how can you go from living paycheck-to-paycheck to financial success? Here are things that could be keeping you from financial success.
Debt can chip away priceless assets like your credit score, peace of mind, and even health. Getting out of debt is the first step toward gaining your financial freedom. Since high-interest debts like credit card payments get harder to pay off the longer they linger, you need to act quickly.
Start by meeting your monthly payments on time. Next, turn your attention to your previous debts and settle those as you earn. You can also use loan consolidation schemes like deed Scotland to write off your debts.
Savings are a sure way to grow your funds and set aside capital for investments. Unfortunately, it often feels like needs grow with your paycheck. The solution is to put yourself first.
Decide to save a percentage of your weekly/monthly income, and pay that first. Set up your savings account in a way that it pulls the money the same day of your paycheck. With this, you know everything else is for your needs and wants.
Lack of an investment portfolio
If you don’t have savings or are stuck in debt, an investment portfolio may not be your priority. However, if you have some money in the bank, consider investing. The law of compound interest ensures that your money grows even if you don’t increase your capital.
Vehicles like stocks and angel investments can earn you a significant profit, often in short periods. But then, since they are high-risk, you could also lose your investment. If your risk appetite is lower, try stable vehicles like treasury bills and fixed deposit accounts.
Lack of property maintenance
It’s not immediately obvious, but maintaining your assets slash maintenance costs in half. Cars and other mechanical assets should be serviced and reviewed frequently to prevent expensive malfunctions down the road.
Also, learning which brands are durable and which ones are just cheap can save you a ton of money. You may pay less for no-name brands, but the service and maintenance costs will eat up any savings you thought you made. It’s better to buy reliable products from the get-go.
Set life goals
Research has shown that people who set goals are more likely to be successful. It helps if you set long-term life goals and aim for those. Do you want to pay off your home? Or, take a vacation in the Maldives?
Having a goal gives you something to aim for. It also makes saving and investing less of a hassle. Every dollar you tuck away brings you closer to white sand beaches. Every credit card bill you pay adds another brick to your home’s walls.
The Bottom Line
These five steps won’t immediately make you financially free. However, they will set you on a path for success and conscious living. The closer you get to your goals, the easier it gets and the more motivated you’ll be. Take the first step today.