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5 Small Decisions That Will Improve Your Financial Status

5 Small Decisions That Will Improve Your Financial Status

Whether you have a little or a lot of money, there are many things that anyone can do to help improve their financial status.

Improving your finances is not about making life altering decisions. You do not need to become the world’s most well-informed investor or to create a budget that is so strict that you live on nothing but potatoes. Healthy money management is all about those small steps that you take towards greater overall financial health.

The end of the year is the time that many people think about changing their financial position for the better. If you’re not ready for a big resolution, you can make just as much progress by making several small decisions that are aimed at improving your finances.

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1. Get Informed

One of the most important things that you can do to improve your financial standing is to be informed about finance. You do not need to become an accountant or find a financial guru. It is all about educating yourself in the places that matter most.

The process of becoming better informed about your finances has two parts. First, you need to understand your own finances. Having a clear picture about where you currently stand is essential for setting and achieving your financial goals. You need to know what you have, what you earn and what you owe. This basic knowledge will have a real impact on how you look at finance.

Second, you need to know more about the basics of finance. You need to have an understanding of the impact of good debt and bad debt. You also need to know about how interest rates can work with you and against you. Learning about the different options that you have for saving money is another good place to start.

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2. Set Real, Achievable Goals

If you’re not already setting goals, there is no time like right now to begin doing so. If you are setting goals, there is no time like right now to measure your progress so that you can improve. Financial goals are important when it comes to improving your finances. These goals give you something to work for. They also give you something to measure your success by.

Setting goals is all about setting achievable goals. To do this, you need to be specific in the goals that you set for yourself.

Let’s say that your goal is to save money or pay off personal loans. You need to know how much money you want to save. You also need to know how you want to save it. Do you want to set up a savings plan to save $500 a month? Or do you want to cut spending to save an extra $200 for extra expenses?

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These are two different types of saving and you would use different methods of achieving each goal. This is why it is so important to make your goals as detailed as possible Do not forget to keep your goals attainable. An unreachable goal sets you up for failure and often hurts not only your finances but your attitude about money.

3. Take Your Time

Taking your time is one of the most important decisions you can make about your finances. Rome was not built in a day and your retirement accounts will not be either. Choosing to think about your financial decisions is also a multi-faceted approach. First, you should make sure that you take time to think about your purchases before you buy them. This helps weed out impulse buys and helps you spend money in a health way. One great way to do this is to put the item in your shopping cart online and if you are still thinking about it the next day, you may actually need the item.

Secondly, you should take your time creating a financial plan. When striving to reach a goal, give yourself enough time to reach it. Trying to save too much, too fast is hard to do. Have patience with yourself and your bank account.

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4. Eliminate Things You Don’t Use

Everyone has at least one bill that they pay every month for a service that they do not use. Whether yours is a landline, a gym membership or a subscription service that you have not figured out how to cancel, take some time to declutter your finances. Eliminating even one thing from your monthly selection of bills can make a big difference on your monthly finances. More importantly, it teaches you how to let go of spending habits that are not serving you.

5. Set Up an Automatic Savings Plan

Saving is important yet it is not at the forefront of everyone’s mind. You can make a decision to automate your saving plan to help make sure that it happens. Even if you only transfer $20 a month into a savings account, every little bit helps you build up a little nest egg. It also makes you more comfortable with saving. It’s a win-win decision.

Taking these small steps towards prosperity can take your further than you’d ever imagine. Remember that you have your whole life to manage your finances, you do not need to accomplish everything today.

Featured photo credit: GotCredit via flickr.com

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Last Updated on June 25, 2019

5 Books You Must Read if You Want to Be a Millionaire in Your 20’s

5 Books You Must Read if You Want to Be a Millionaire in Your 20’s

Millionaires and billionaires read more than you think. In fact, the likes of Warren Buffet are said to read 1.000 pages a day. As the old saying goes “There’s no smoke without fire”; so, start off with these 5 incredible books!

1. The 48 Laws of Power

48-laws-of-power

    “If you are unsure of a course of action, do not attempt it. Your doubts and hesitations will infect your execution. Timidity is dangerous: Better to enter with boldness. Any mistakes you commit through audacity are easily corrected with more audacity. Everyone admires the bold; no one honors the timid.”

    On your journey to becoming a millionaire in your 20’s, there will be many people trying to manipulate you into doing what they want. This international bestseller by Robert Greene is the widely read by those in the entertainment industry because of its dog-eat-dog environment. This book is a must-read for anybody who wants to claim power and keep it. it’s a fun read that tells the story of some of the most powerful people in history.

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    An example of a law of power is: Always say less than necessary.

    • When trying to impress, the more you say the more common you look and less in control.
    • Be vague.
    • Powerful people impress and intimidate by saying less.

    2. Influence: The Psychology of Persuasion

    influence-the-psychology-of-persuasion

      “Often we don’t realize that our attitude toward something has been influenced by the number of times we have been exposed to it in the past.”

      This book explains the core strategies people use to influence others using real world examples. Robert Cialdini’s book goes over human quirks like the need to be consistent, and how you can use that in your marketing strategy to make more money. “People’s ability to understand the factors that affect their behaviour is surprisingly poor,” Cialdini says, “which leads to people making poor decisions without realising why.”

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      Cialdini includes real world examples of why people join cults, buy certain jewellery, or give to charity.

      3. Blue Ocean Strategy

      blue-ocean-strategy

        “Value innovation is the cornerstone of blue ocean strategy. We call it value innovation because instead of focusing on beating the competition, you focus on making the competition irrelevant by creating a leap in value for buyers and your company, thereby opening up new and uncontested market space. Value innovation places equal emphasis on value.”

        This book argues that leading companies don’t succeed by battling competitors in “Red Oceans”, but by creating “Blue Oceans” where they have uncontested market space to grow. It goes over case studies like “Cirque Du Soleil” who created a blue ocean by creating a circus platform that didn’t include animals or more than one act on at once but instead, decided to focus on talented performers and music who created a mystical storyline.

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        4. The Fountainhead

        the-fountainhead

          “A man’s spirit is himself. That entity which is his consciousness. To think, to feel, to judge, to act are functions of the ego.”

          The Fountainhead takes place in the United States, mostly in New York City, during the 1920s and 1930s. Billionaire Mark Cuban named his yacht “Fountainhead” after this book. This classic novel is about the struggles of an innovative architect named Howard Roark and his effort to achieve success on his own terms. Many entrepreneurs are inspired by this book because it depicts how you should be uncompromising when it comes to your vision and your goals. If you follow this way of life, you develop the ability to change the world and creating something unique.

          5. The Compound Effect

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          the-compound-effect

            “Do you know how the casinos make so much money in Vegas? Because they track every table, every winner, every hour. Why do Olympic trainers get paid top dollar? Because they track every workout, every calorie, and every micronutrient for their athletes. All winners are trackers.”

            This book is by Darren Hardy the CEO of Success Magazine, he goes over how it’s the small, seemingly insignificant choices that compound to create success or failure over time. No one has a plan to be broke and fat but that’s what happens when you don’t have a plan and go along the path of least resistance. Hardy argues that you cannot improve something until you measure it and to always take 100 percent responsibility for everything that happens to you.

            So, those are five books you must read if you want to give it a try to become a millionaire in your 20’s. What are the best books you have ever read? Leave a comment and share these life-changing books with your friends to help them become successful like you.

            Featured photo credit: Bill Gates Foundation via businessinsider.com

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