I know the feeling, working every day just to pay the bills. Living paycheck to paycheck and have nothing to show but an empty wallet? Thinking everyday man, I am broke. Is everything you make not yours to keep? Are you paying everyone but yourself? If you are working and have nothing left over when you get paid you are working for everyone but yourself. Yes, you are getting by, but there is more to life than just getting by. Having money makes a lot of things possible and lifts that burden of living paycheck to paycheck. So, what should you do? Do I need to learn about money management, money saving strategies, financial planning, pay for financial advice or someone to manage my finances?
You need to no matter what keep at least ten percent of what you earn. Put it up automatically. I know you are thinking I cannot do this I do not have that much extra money every month. I thought the same thing but once I did this I still managed to get by. You will learn the difference from desires and needs. You will want to start a budget if you have not already. I have tried every budget app out there and my favorite is ISaveMoney. This app will make you input what you spend manually, and this keeps me in line because I can tell how much I have left to spend. Make your categories manual and keep them simple. Bills, daily living, paying yourself, Fuel etc. Make sure you calculate you paying yourself part of your budget at a minimum of ten percent. If you Net $1,500 a month $150 needs to be put up in a different account. If you net $3,000 then $300 a month needs put up.
Once you start doing this you will be shocked at how much money you start saving and still get by every month. If you put up ten percent of what you make every year you would think in ten years you would have as much money put up as you make in one year, correct? That is only partially true. Every dollar you save is a dollar that can work for you, every penny it earns is a penny that can work for you as well. It is called Compound interest and something that you should be focused on. Make your money work for you. If you are new to investing, see Investing money for beginners and a list of the Stocks, ETF's and mutual funds for yield.
There are a lot of financial principles to learn but start here. Get yourself a good financial plan in place and see the Financial information for more and read The Richest Man in Babylon. That is where I have received these principles at, they are not original. Stop working for Starbucks, McDonalds, Amazon, and other places you may spend your earning, and start working for yourself and make your earnings work for you. Remember things do not have to be complicated, let us keep life simple. Too many times we over-complicate things and make it worse. Stick to the basics and keep hustling.
Living a simple life does not mean being broke.
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