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10 Finance Fundamentals To Act On For Success

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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.

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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 January 5, 2022

33 Painless Ways to Save Money Now

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33 Painless Ways to Save Money Now

In a difficult economy, most of us are looking for ways to put more money in our pockets, but we don’t want to feel like misers. We don’t want to drastically alter our lifestyles either. We want it fast and we want it easy. Small savings can add up and big savings can feel like winning the lottery, just without all of the taxes.

Some easy ways to save money:

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  1. Online rebate sites. Many online sites offer cash back rebates and online coupons as well. MrRebates and Ebates are two I like, but there are many others.
  2. Sign up for customer rewards. Many of your favorite stores offer customer rewards on products you already buy. Take advantage.
  3. Switch to compact fluorescent bulbs. The extra cost up front is worth the energy savings later on.
  4. Turn off power strips and electronic devices when not in use.
  5. Buy a programmable thermostat. Set it to lower the heat or raise the AC when you’re not home.
  6. Make coffee at home. Those lattes and caramel macchiatos add up to quite a bit of dough over the year.
  7. Switch banks. Shop around for better interest rates, lower fees and better customer perks. Don’t forget to look for free online banking and ease of depositing and withdrawing money.
  8. Clip coupons: Saving a couple dollars here and there can start to add up. As long as you’re going to buy the products anyway, why not save money?
  9. Pack your lunch. Bring your lunch to work with you a few days a week, rather than buy it.
  10. Eat at home. We’re busier than ever, but cooking meals at home is healthier and much cheaper than take-out or going out. Plus, with all of the freezer and pre-made options, it’s almost as fast as drive-thru.
  11. Have leftovers night. Save your leftovers from a few meals and have a “leftover dinner.” It’s a free meal!
  12. Buy store brands: Many generic or store brands are actually just as good as name brands and considerably cheaper.
  13. Ditch bottled water. Drink tap water if it’s good quality, buy a filter if it’s not. Get 
      a reusable water bottle and refill it.
    • Avoid vending machines: The items are usually over-priced.
    • Take in a matinee. Afternoon movie showings are cheaper than evening times.
    • Re-examine your cable bill. Cancel extra cable or satellite channels you don’t watch. Watch the “on demand” movie purchases too.
    • Use online bill pay. Most banks offer free online bill paying. Save on stamps and checks, and avoid late fees by automating bill payment.
    • Buy frequently used items in bulk. You get a lower per item price and eliminate extra trips to the store later on.
    • Fully utilize the library. Borrowing books is much cheaper than buying them, but in addition to books, most local libraries now lend movies and games.
    • Cancel magazine/newspaper subscriptions: Re-evaluate your subscriptions. Cancel those you don’t read and consider reading some of the other publications online.
    • Get rid of your land-line. Do you really need a land-line anymore if everyone in the family has a cell phone? Alternatively, look into using VOIP or getting a cheaper plan.
    • Better fuel efficiency. Check the air pressure in your tires, keep up with proper auto maintenance, and slow down. Driving even 5MPH slower will result in better fuel mileage.
    • Increase your deductibles. Increasing the insurance deductibles on your homeowners and auto insurance policies lowers premiums significantly. Just make sure you choose a deductible that you can afford should an emergency happen.
    • Choose lunch over dinner. If you do want to dine out occasionally, go at lunchtime rather than dinnertime. Lunch prices are usually cheaper.
    • Buy used:  Whether it’s something small like a vintage dress or a video game or something big like a car or furniture, consider buying it used. You can often get “nearly new” for a fraction of the cost.
    • Stick to the list. Make a list before you go shopping and don’t buy anything that’s not on the list unless it’s a once in a lifetime, killer deal.
    • Tame the impulse. Use a self-enforced waiting period whenever you’re tempted to make an unplanned purchase. Wait for a week and see if you still want the item.
    • Don’t be afraid to ask. Ask to have fees waived, ask for a discount, ask for a lower interest rate on your credit card.
    • Repair rather than replace. You can find directions on how to fix almost anything on the internet. Do your homework, and then bring out your inner handyman.
    • Trade with your neighbors. Borrow tools or equipment that you use infrequently and swap things like babysitting with your neighbors.
    • Swap online. Use sites like PaperBack Swap to trade books, music, and movies with others online. Also, look for local community sites like Freecycle where people give away items they no longer need.
    • Cut back on the meat. Try eating a one or two meatless meals every week or cut back on the meat portions. Meat is usually the most expensive part of the meal.
    • Comparison shop: Get in the habit of checking prices before you buy. See if you can get a better price at another store or look online.

    Remember that saving money is not about being cheap or stingy; it’s about putting money into your bank account rather than giving it to someone else. There are many ways to save money, some you’ve never thought of, and some that won’t appeal or apply to you. Just pick a few of the ideas that sound doable and watch the savings add up. Save big, save small, but save wherever you can.

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    Featured photo credit: Damir Spanic via unsplash.com

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