We would like to share 2 habits that can take a person from scarcity to true financial independence within the next 10–15 years…
1. Money Is A Tool For Freedom, Not Freedom Itself
The moment one becomes a teenager, we become aware of the need to become familiar with saving and investing money for the future.
Most American families are middle class and talking about money openly is something that is unheard of or taboo, which leaves young adults with the feeling that financial freedom isn’t possible, and that the desire for money is something slimy and “the root of all evil”.
Truth is, Money is a tool for freedom, a useful one at that, and contrary to that limiting belief that unless you were born rich or inherited a large sum of money, you can’t grow prosperous,
We would like to share 2 habits that can take a person from scarcity to true financial independence within the next 10-15 years.
2. Live Well Below Your Means
We have all heard the importance of frugality or living below one’s means, however very few people truly know how much money can be saved by doing so. While I must admit, living below one’s means is hard, it is very doable.
Many of us opt for the daily $5 lunch at McDonald’s on the way to work, or school, but will be better off packing a lunch from home, and saving $25 weekly, or a whopping $125 per month.
3. The 10% Rule: For Every $10 You Earn, $1 Is Yours To Save!
There is nothing more powerful than putting yourself first financially! I know. I know… you have bills, expenses and family members who demand your financial support.
However, while it might seem as though money leaves your pockets as quickly as it enters, you can just as easily invest your first $1 into yourself as you can easily spend it on a miscellaneous item.
Saving your first $1 or 10% of whatever income earned can revolutionize the next five years of your life.
Think about it! Many young adults who have a regular job earn from $300 – $500 / week, or a potential max weekly savings of $50 or monthly savings of $200.
Experts say it takes about 6 months to develop a new habit. So if your new saving habit is done consistently for 6 months, you should have over $1,100 in savings, and if you are steadfast, and grow serious about your new saving plan, you will be sitting on $12,000 within the next 5 years.
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Finally, it is time for you to rewrite your financial story. You choose the outcome of the next 5–10 years of your economic life. While these two tips do indeed require tremendous amounts of self-discipline and persistence, the alternative of living paycheck to paycheck, on borrowed loans, and having to struggle financially pale greatly in comparison to a life of freedom.
Start small if you must! It’s ok to start with a few dollars monthly, but the true key is persistence, effort!
Image Credit: by envato.com
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