Modern life is overloaded with demands which require a lot of money to keep up the standard. The cost of living is constantly going higher and higher each an everyday. As a matter of fact, Financial illiterate is very crucial in life. Wisdom will help you to spend your money wisely. My main aim is to help you to be financially prudent. I have outlined 4 tips you should follow to eradicate financial stress. The list goes as follows :
1) Live a simple lifestyle
In this 21st century, most of the people are living a lavish lifestyle as a way of proving a point. They do their best to impress people around them. If you take a look, rich people do not get their fortune by overspending beyond their income. If you want to improve your revenue, just live a normal life and it is a simple recipe to live a peaceful life which is free from unnecessary drama. Let me give you words of wisdom, live a normal lifestyle which is equivalent to your means.
2.Avoid debt
Strive to avoid debt at all costs. Start by treating your credit card as a way out of an emergency rather than a luxury. The best practical practice you should do is to avoid taking credit cards for shopping.
3.Put money aside
If you are earning money, you need to create a strategy to split your income between your
- Living costs – tithe, fixed bills such as rents, grocery shopping,mortgage, fuel or transport money,
- Personal expenses – cinema, evening outdoor, vacation
- Your savings will be split into 2 accounts which are retirement savings plans and emergency savings plans.
4.Create another source of income
A large number of millionaires do not rely on one form of revenue. Actually, they have several channels of making money. Start small and find a side job that can generate extra money for you. For instance, you can start to bake cakes or muffins, do online tutoring, open an online store or venture into farming.
Written by
Rudzai Magwabeni
Author’s Profile
Rudzai Magwabeni is a managing director of Ritike Finance and RDI Financial Services, Motivational Speaker, Business Consultant and Author of the Book Turn Your Passion Into A Business.