[youtube https://www.youtube.com/watch?v=vtsf1To2Ut8]If money is something that makes you happy — and let’s face it, more money never hurts — then the following tips will help you earn more and keep more in your pocket.
- Stop Being a Consumer, Start Being an Investor – Getting rid of unnecessary spending and unwanted debt is a must. The goal is to make your balance sheet positive, meaning placing an emphasis on assets instead of liabilities. If liabilities are a must, make sure they are somehow helping you obtain assets that grow in the long run.
- Create an Emergency Fund – Having money sitting around for a rainy day is a must. Most experts agree that enough to cover 6 to 8 months of expenses is usually best. Note that this does not mean you need to replace your income exactly for those months. Most people can live on far less than their income if they are disciplined. So aim to save enough to cover your necessary expenses during this time.
- Invest in the Stock Market – Not investing isn’t the same as sitting still. Money not earning interest is losing out to inflation. Make sure you are at least matching inflation, and hopefully beating it. Aim to reinvest your dividends if possible.
- Purchase Real Estate and Rent Out Your Property – Real estate has historically been a solid, long-term investment. Renting out your property adds positive cash flow to the investment. Consider adding this to your overall portfolio.
- Create Your Own Business – Ideas include a blog, a graphic design company, or a salon. Working for yourself has many upsides, including being able to choose your path and earn an income doing something you love.
Employing these five tips will ensure a balanced approach that will help you reach your goals and ultimately lead to financial freedom.