If you are a Steemian, I suppose you want more money in your life, right? But I am quite sure that, like most of us (over 60% of us actually), you do have less than 3K worth of savings in the bank. Scary right?
January is known to be the month of financial scarcity. Christmas and New Year usually have us sending the bank card on overdrive. And not being able to see the light of day financially for almost 6 weeks is definitely a nightmare that a lot of us have in common.
With New Year’s resolutions being well under way, if not long forgotten already, I’d like to bring you nuggets of wisdom worth gold when it comes to money management and the relationship we tend to have with it.
Ready? Awesome… Your financial freedom depends on it, so better pay attention!
Start saving money as early and as regularly as possible
“The sooner the better” is a saying which applies for a lot of things, especially money. Haven’t you heard about the compound effect?
Ok, let me give you an example :
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Basically what this graph means is that, the more regularly you save, during a long period of time, without taking any money out, the more you will get when you will want to take it out! Got it?
And it doesn't have to be big amount, just make it regular and through a quite long period of time (and automate it!) et voilà! How to make a cushy retirement fund for if we (ever) retire!
Diversify your incomes
Because we all know that your salaried job alone is not gonna make you a millionaire, the more streams of revenue you have the better. The more streams you have, the less chances there are than, when there will be a crash next, you'll be impacted, as you'll have other means to live(and it’s coming sooner rather than later). The Kardashians are a great example of it (not that I encourage you to be like them, but in terms of money, they know how to handle it rather well!)
Always live within your means
Because you earn money doesn’t mean you have to live from one paycheck to the next. Unfortunately, most of us are in this case. Why? Why is it that every months we are borderline, if not under the red line when it comes to our money?
We tend to live above our means. We live the lifestyle we want to have before we actually can afford it. Is it necessary to buy the next dopest smartphone there is? Yes? Will it improve your swag or your bank account? Just think about it…
Don’t spend money, invest it
What’s the difference between spending and investing? The first doesn’t bring you money in return. Ask yourself this question next time to go to buy an expensive pair of shoes, or a couple of pizzas. Things will not make you rich, it is what you will do with them than will. Buying lots of things will never make you rich, knowledge will. So invest in yourself first so you can make the money back and more.
Don’t underestimate the power of entrepreneurship
Freelancers, Startup founders, Entrepreneurs, these are no easy titles to wear. They sound cool but they come with hard work, perspiration and dedication, and also with money, which is scary to most of us. What’s actually more scary is the glass ceiling there is above the world of salaried corporate workers. As an entrepreneur, when you manage to power things up, the sky becomes the limit and the banker your best friend. And you want the banker to be your best friend, trust me.
To wrap up we can surely say that who you are is not define by what you’ve got, more by what you do with what you’ve got. And money doesn’t make you happy, it give you more options to do things to make you happy. So be happy with making more money with the money you have so you can do more things according to yourself and be happy! Simple !
Until next time.
The French Londoner