5 Pieces of Financial Advice You Can't Afford to Ignore
1. Spend less than you make.
Spending less than you make is essential to keeping your sanity and building wealth. To learn more about your spending habits, write a cash flow statement. On a sheet of paper, create two columns. On one side, list all monthly sources of income; on the other, list monthly expenses. Next, subtract the two (income - expenses = cash flow). If your cash flow is positive, you're on the right track. Living beneath your means puts you in a better position to save and invest.
2. Let your money work for you. Each month, use your cashflow to invest in income producing assets (for example index funds and REITS). This may be available to you through your employer or you can set up an online brokerage account.
Check out this video to learn how to invest in index funds by setting up a ROTH IRA:
3. Save for a rainy day.
Build your savings to over time to cover emergencies and unforeseen expenses. If you're unsure how to get started, check out the post, "30 ways to build an emergency fund".
4. Pay off debt.
Eliminating consumer debt strengthens your financial foundation and is essential to building wealth.
5. Keep your financial priorities straight.
Keep your vision at the forefront and give yourself permission to say "no" to people, things, and activities, that aren't in alignment with your financial goals. Yes, this can be a challenge but this is financial advice you cannot afford not to take.
What's the best piece of financial advice you've ever received?
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