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10 Finance Fundamentals To Act On For Success

10 Finance Fundamentals To Act On For Success

Most of us wonder why certain people are financially successful while we are still lagging behind. The common financial mistakes that we make happen to be linked to our financial instability. We make the mistake of living beyond our means again and again and we tend to spend more than we can afford to spend. We are seldom frugal, and so at the end of the month, we save almost nothing. We get caught up in the too-good-to-be-true investment ideas and end up losing hard-earned money. Another common mistake that we make is to invest our money at the wrong time and for the wrong reasons. While there is no hard and fast rule for financial success, the following tips should be considered if you want to get ahead of your peers.

1. Be Passionate And Motivated.

If you are not passionate enough about what you are doing, then boredom and a lack of motivation will inevitably create hurdles for you. Passion and a significant amount of motivation are necessary for financial success. So, think carefully before you start your business venture. Do only what you are sure will never bore you.

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2. Take Smart Risks.

What differentiates entrepreneurs from others is their ability to take risks. Know that business is a game of uncertainty and strategy. If you can plan well, strategize, and have all the necessary resources at hand (besides having a plan B), then you can easily afford to take financial risks.

3. Have Faith In Yourself And Be Dedicated.

Confidence is the key to a successful business venture. If you are disciplined and have perseverance and willpower, then your dedication will definitely bring you positive results.

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4. Stay Out Of Debt And Save.

Always make it a point to spend less than what you earn. Don’t give in to materialism so easily. Avoid temptation and be smart with your credit cards — they may tempt you to spend more than you can and at the end of the month you will curse yourself for spending too much. Try to have less wants — this is what causes many people to go into debt.

5. Read, Study, And Learn.

Read everything, as this will prepare you for any kind of outcome. Do thorough research about each and every thing related to your business. You will make mistakes, but do not let them deter you. Use those lessons constructively.

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6. Buy Businesses.

Buy as much business as you can. There is nothing like investing early in life. Try to own this good habit and buy shares of stocks in companies you believe in. Before you make investments in companies, make certain considerations, like whether you would buy the entire business if you could. The money that you earn from these investments should be spent on other investments for future financial growth.

7. Understand What You Own.

Do not make the mistake of investing in a business that you don’t truly know and understand. This is surely a recipe for disaster. Know the ins and outs of the business you are investing in. If you can make a child understand the business, then you know that you yourself have fully grasped it. Protect your assets by insuring them.

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8. Invest For The Long Term.

Always buy stocks with the intention of keeping them for the long term. Invest in companies which require low capital or which sell products which will always be in demand. Hold out against the urge to constantly buy and sell investments, as this will get you nowhere.

9. Maintain A Margin Of Safety.

Do your homework properly, because if you are an uninformed investor, then there is a huge chance of your investment not working out. Make sure that each of your investments will give you back more than you are currently investing. If possible, consult an expert before you invest because they can help you see all aspects and make the right decision.

10. Give Back To Society.

Lastly, whether you have enough money or not, always make it a point to donate some for those in need. It will not only make you feel good, but will also contribute in changing someone’s life for the better. As your investments grow, be sure to maintain this link to humanity.

Featured photo credit: frankieleon via flickr.com

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Mike Dawson

International Trade with Healthy Living Style

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Last Updated on April 3, 2019

How to Nix Your Credit Card Debt in Less Than 3 Years

How to Nix Your Credit Card Debt in Less Than 3 Years

Debt is never a fun thing to be in. But, there are many actions that you can take that will help you rid yourself of the burden of debt once and for all.

By coming up with a set plan, eliminating your debt can feel much easier than constantly thinking about it.

This post will provide some tips on how you can do this to help you nix your credit card debt in less than 3 years.

Hint: there are ways that are easier than you think.

1. Consider Consolidating Multiple Credit Cards If Possible

This may not be applicable to you, but if you have multiple cards – it is something to consider. Keeping up with multiple bills is time consuming.

It will depend on the balance you have on each. Consolidate ones you can but do not do it to the point that you get too close to the maximum limit. Also, it is ideal to pick the card with the lower interest rate.

Consider if there are any fees or alternatively, rewards, with transferring a balance to another card. Watch out for fees. Note that some cards offer rewards for transferring a balance to them. This is extra cash that can help go towards paying off your debt.

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Having one or two cards can make nixing your debt much simpler than keeping up with the balance of a bunch of cards. Keeping track of paying the minimum towards a bunch of cards is time consuming. Spend the time to consolidate instead to make the overall process simpler going forward.

My tip: Have one main credit card. Have a second one that you use for necessities – such as groceries or gas – that offers rewards for those purchases (a lot of cards do) and set the second one on auto-pay. You should be able to pay off a smaller amount on auto-pay if it is a necessity. If you think you cannot, then you may need to cut down a lot on expenses.

Why do I suggest doing this? Having one thing set to auto-pay is one less thing to think about. One less thing to waste time on. Same idea with consolidating to one main card. Tracking down too many is a hassle.

2. Try to Pay the Full Balance You Spent Each Month at the Very Least

You need to pay off the amount you are spending each month when that bill comes in. This is the amount you spent THAT month.

Do not let the debt keep accruing while you work on paying any unpaid debt that has accrued. It will become a never-ending battle. Try as best as you can to be current on paying for each month’s expenses when that month’s bill comes out.

If this is a strain, consider why. You may need to cut expenses. Or you may need to consider other cards. Or look at where this money is going.

3. Pay Extra When You Can – Every Small Amount Counts

This cannot be emphasized enough. If you are looking at a lot of credit card debt, it can look daunting, but each extra amount that you can put towards the debt will really add up – no matter how small it is.

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It does not just reduce the principal amount that you have left to pay off, but it reduces the amount that is collecting interest. You will always save money with that reduced interest.

4. Create a Plan on How to Pay Extra

Back to the main point, having this plan is giving you one less thing to think about.

This plan should be a plan that works for you. If it does not work for you, your spending habits, and your views on debt, then it will not be an effective plan.

For instance, if a set plan of an extra $50 (or another amount that you know you can afford) works for you, then do that. Set that aside every month and pay that extra amount. Treat it like a bill. Choose an amount that works for you and pay it like clockwork as though it was a bill you had to pay each month.

Little amounts will not nix it entirely, but they will help tackle it and having a set plan can make it less of a chore. Creating a new plan of how much to put towards it each month is an unnecessary added stress.

5. Cut out Costs for Services You Do Not Use

If you are signed up for subscriptions that you do not use because of some free trial or for some other reason, cut it out. Your overall financial position will look better.

In turn, that will make cutting your credit card debt easier. Look at your statements to find these expenses. If you do not use them, you may forget you are paying some unnecessary amount each month. Cutting it out can really add up in savings that you can put towards other needed expenses.

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6. Get Aggressive About It

Consider these points:

Depending on the interest and the level of debt, you may need to give up a few indulgences. For example, instead of ordering delivery or going out to eat, cook at home. Everything adds up.

Other things may be more of a sacrifice. It may be a trip you wanted to go on, or a daily latte habit you’ve picked up. In these instances, consider how important it is to you and if it’s worth the sacrifice. And if it is a costly expense, think whether you can wait to indulge.

Cutting an extravagant expense can really help make a dent in your overall debt. Try not to add to debt when you are trying to pay it off. It will be a never-ending battle. Make it less of a battle with these tips and it will feel easier.

Bottom line: Do what you can to make this process easier for you. Implement steps that do this. It takes time now, but will help overall. Also, keep track of your spending and paying down of your debts. Which is the next point.

7. Reevaluate Your Progress at Set Intervals

Doing a regular check-in can help you see your efforts pay off or maybe indicate that you need to give this a bit more effort. If you check every 3-6 months, it will not feel so much like a chore or feel so daunting.

By doing this, you will be able to better understand your progress and perhaps readjust your plan. Bonus: if you see it pay off, it will feel great to do this check-in. You will get there.

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Finally (and most importantly)…

8. Keep Trying

Do not get discouraged. Pushing it off will make it worse. Just keep trying.

Once your debt becomes lower, each monthly payment will reduce the balance more. Why? You are paying less towards interest. It will be a snowball effect eventually and it will become much easier to manage. Just get to that point. And know once you do, it will feel easier and motivating.

Start Knocking out Your Debt Today

The best way to eliminate debt is to get started right away. Begin by implementing the above steps and watch your debt just melt away. Try out some of the above strategies and see what works best for you. Soon you’ll be on your way to a debt free life.

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Featured photo credit: Pexels via pexels.com

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