While there’s no guaranteed way to secure your financial future, there are a number of things you can do to stack the deck in your favor. Simply by changing a few things in your life, you can get enough money to start a business or just save up for that next life milestone. Here are a few things you can do now to help make your future financially bright.
1. Sell or Rent Unused Belongings
Things you’re not using aren’t helping you, and if you want to become financially stable, you’ll need all the help you can get. Those tables and rooms that are just sitting untouched are money sources waiting to be used. Renting out a car, bicycle, or a room, is more common than you think. If you’re confident you won’t ever use something again, sell it on places like eBay or Craigslist.
2. Live Below Your Means
Income surplus is incredibly important. Having a healthy gap between what you make and what is spent helps you accomplish vital goals like funding your emergency savings account and investing early for retirement.
Equally importantly, it gives you the important power of having cash on a rainy day and can allow you to take advantage of critical opportunities, like investing in a promising new company. Unfortunately, many people live at or beyond their means, resulting in very little saved.
Stop trying to keep up with your neighbors and start living within your means. Spending less now often gives you the opportunity to put that money to work for you in the future.
Want to learn more about how to calculate your income surplus, checkout our article on the top 3 personal finance metrics you should be measuring.
3. Do Things Yourself
Getting someone else to do things for you or buying stuff at the mall may be convenient, but it can quickly get expensive. If you have the time, do some things yourself. Instead of having someone perform basic chores, do it yourself. Simple home repair should also be in your wheelhouse. Even cooking your own food instead of ordering in can save you a lot of cash.
Many people justify paying others to do these chores like mowing the lawn because they have determined that their time is worth more than the $30-$40 it will cost. Be careful with this logic, as it only makes sense when that time is directly traded 1-for-1 with making more money per hour invested.
4. Trim the Fat
Personal finance is as much about saving money as it is about making money. There are a lot of things in your life you don’t really need but are cutting into your savings. While they feel good and can brighten a murky day, it’s likely that cutting out your daily Starbucks coffee can help you save for a brighter future. Think about things you don’t really need, like that cable subscription, and cut them out.
Once a year, set aside a weekday morning to do price shopping on all your services. This includes utilities like electricity, phone services, insurance, etc. This is a great way to keep pressure on your expenses to make sure they don’t over-inflate year-over-year.
5. Never Stop Looking for Deals
If you want a bright financial future, you can’t keep paying full-price for all your items. Whenever possible, look for deals. Sometimes it’ll mean waiting for sales. Other times, it’ll mean buying in bulk or buying used items. Every little bit of cash saved matters.
If you want to improve your personal finances, you’ll have to do more than make extra money. It doesn’t matter how much money you make if you keep spending too much. Knowing how you can save money at every opportunity is just as important.