Achieving financial freedom is a goal for all people, because the abundance of money provides them with the freedom to act away from the interference of others, and gives them complete freedom in making their decisions.
Here are 5 tips to improve your financial situation and achieve your economic well-being:
Focus On Increasing Your Income Instead of Saving
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No one denies the importance of reducing spending and increasing the saving margin for a secure and stable life! But if your ambition is not only the safety ceiling, but rather exceeds it to the financial level that provides you with a better life and greater freedom, then it is better for you not to tire yourself by focusing on miserable savings attempts, but instead to sharpen your determination and push it towards a higher ceiling by setting a new level for your income and working to achieve it. It is better to work hard and get an increase in monthly income of 500, for example, than to deprive yourself or tire yourself out in order to save 100 or 200 of your current income. But not everyone has the determination to pave this path, and it is better for those with sweet wishes, cold determination, excuses and circumstances, to be content with saving and organizing their financial affairs so that they do not fall into a pit of financial chaos that has no resolution. Increasing income requires the persistence of a young child and the heart of a lion. It is not an easy task compared to reducing expenses. A person has to avoid laziness in his work, learn more to raise his value, and work hard to build more income resources.
Avoid Consumer Loans
The only thing that will kill your goals of achieving financial independence and delay your financial success is consumption loans. Debt pressures weaken your financial position, as instead of focusing on increasing your productivity and raising your income, you will find yourself burdened with loan interest and overburdened by installments and payments. Of course, consumption can be good for the economy in general, but you should avoid borrowing just for instant gratification while you can defer it and manage it with your finances.
Abandoning the consumer mentality and ignoring what others have will help you avoid debt and live within your current financial means, and focus on improving your financial situation so that you can improve your standard of living with your financial resources and not by resorting to consumer loans that may make you happy today but hurt you tomorrow.
List Your Sources of Income
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We live in an era where one income is not enough to cover the expenses, and almost everyone needs to have additional income that helps to achieve financial independence faster.Whoever depends on one source of income, his entire financial future depends on his ability to maintain this source, and as soon as he loses it, he loses everything. As for the financially successful person, if he loses one of the sources of income for some reason, he will still have one or other sources that protect him from the risk of bankruptcy.
In addition to focusing heavily on your career that provides you with a basic income, another way to get additional money is side business and investment. Below are some common additional sources of income:
- Own income-generating assets, such as stocks, bonds, and real estate
- Transforming experiences into consulting work
- Writing e-books and providing training courses
- Investing your network of knowledge and relationships in successful projects
Plan for Tough Times
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The financial emergency plan is very important, and it has become an urgent necessity in the era of changes and speed, and the Corona pandemic is a great lesson in this aspect. A financial plan for difficult times helps a person focus his efforts to achieve his goals and ambitions with peace of mind, and at the same time makes him ready for things when things go wrong.
It’s financial intelligence to plan proactively for an emergency, whether it’s a medical emergency, a layoff, or a market crisis. Without reserve funds, you are exposed at any time to a crisis that may need to be overcome for months or perhaps years.
Here are the most common crisis and emergency protection strategies:
- Owning an emergency fund equal to 6 months income
- Choosing an appropriate health insurance plan
- Income protection through disability insurance
- Protecting the family through life insurance
In the absence of such plans and measures, it is very easy to face huge financial losses during the first emergency problem.
Set Aside Some Money to Develop Yourself
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He whose mind, skills and experience are his most valuable assets, does not fear poverty. The measure of your real capital is how much you would be worth if you lost all your money, lost your job, or lost all your investment. So invest in yourself before your money, as investing in yourself reaps its fruits later.
Money can be earned from investing money or investing in oneself, both of which need to keep learning and developing. Whoever seeks to advance in his career path should invest in improving his professional qualifications and acquiring new knowledge and skills that give him more opportunities. Whoever aspires to enter into trade and investment will need to expand his knowledge of ways to develop money, and the more he learns about trade and investment, he will be able to think in a better way. Strategist regarding his finances and financial ambitions.
If achieving financial independence is one of your priorities, invest your time and money in developing yourself and this is the best investment in order to earn more money in the future.
Summary
The difference between the category that wishes to improve its financial situation and the category that actually seeks to achieve this, is that the first category is either lazy, expecting money to fall on them from the sky, or in a hurry, wishing the soul to find a shortcut or a stroke of luck! As for the second category, they are persistent people who work hard to achieve their ambitions and are determined to advance financially and achieve their economic and social well-being.
