6 Financial Lessons That Will Change Your Life

saving
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It is important for us to always have some financial lessons that we are applying in our lives. Most of us are on financial journeys where we are seeking to be richer, more financially stable, less in debt, smarter, and all other great things people seek.

However, all these things do not come overnight. We need to apply some discipline and knowledge in our lives for us to be able to realize all this. Here are 6 financial lessons that will change your life.

1. Watch Your Spending And Saving Habits

A lot of people think that they need to earn just a little bit more money. We also tend to assume that when we reach a certain level of income, we will be satisfied and will be able to live a comfortable life.

The reality is that if you do not watch your spending and saving habits, you will struggle even with a higher income. Lifestyle creep is REAL. You need to be disciplined in order to live a comfortable life.

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And the truth is that a lot of people hold the narrative that living a comfortable life means upgrading things in their life. They upgrade their technology, their skincare products, their beauty products , gym memberships, clothing and even the food they eat.

When you move up in income, you simply need to be disciplined. You need to make sure that you maintain the things that do not need to be upgraded.

You may not need to upgrade your subscriptions unless they are earning you money and you definately do not need to upgrade your gym membership. Practice the habit of delayed gratification and you will be able to live comfortably your whole life.

2. Have Many Different Income Streams

It is now considered a grave mistake to have only one income stream. What if that stream dries out. You will be back to square one if you do not have any savings.

It is widely known that many of the millionaires today have an average of 7 income streams. So for starters, you should at least aim to have 2 or 3 income streams.

money rules- saving

If you have a 9-5 job, look for something you can do on the side in the evening or even on weekends. There is so much opportunity nowadays to work online.

Try to build online passive income streams through e-commerce or content creation. You can invest your money in real estate or in the stock market. The options are endless. Here are 6 best income streams to skyrocket you to financial freedom.

3. Invest In Your Personal And Professional Development

Personal improvement is very important in your financial journey. While you are growing income-wise ,you also need to grow as a person.

Whether it is professionally, or even knowledge-wise. Invest in courses that will help you learn new skills that you can apply in your life or even your career. There are so many free courses being offered online by great platforms like Coursera and edX.

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If there is training you can get in your job, be proactive and get the training. Always try to stay on top and get ahead in whatever aspect of life.

Whether it is your career or your business. Getting ahead professionally will also see you reap in income and expansion.

4. Lower Some If Not All Of Your Monthly Expenses

We all need to learn a thing or two from people who are living frugally. They end up saving quite a lot which helps them in the long run.

budgeting

There are so many things that we can look at in our budget to cut on costs. You can reduce on rent by renting out part of your apartment or moving in back home (trust me its not as strange as it seems nowadays).

You can also reduce the budget for food by reducing the number of times you eat out. Save on shopping by buying things in bulk once a month. Whatever it takes to reduce your costs, do it.

5. Stop Buying Things You Do Not Need

Do you really need those new shoes? Or that subscription that you will probable forget about by next month? Online shopping can also be one of the things that are deterring you on your journey.

online shopping

As much as automating makes processes easier, it may be making it harder for you to save up. So cancel any cards linked to the various online stores you shop at. A great rule of thumb to discipline yourself from buying things you do not need is to always wait it out.

If one week later you forget or do not think you need the item anymore then do not buy it. This may not work for everyone so always find ways to discipline yourself.

6. Read More Finance Books/Material

There are so many financial books and material today that there can be no excuse as to not read one. Some of these books are even free online and can be accessed from anywhere.

books

There are many financial books which have audio versions on Amazon and Youtube that you can read to help you get the right mindset with your finances. Some of the books I would recommend are:

Rich Dad Poor Dad By Robert T. Kiyosaki

Think and Grow Rich By Napoleon Hill

The Monk Who Sold His Ferrari

The Intelligent Investor By Benjamin Graham

There are also numerous financial blogs including this one that are spewing great knowledge to its audience on a weekly basis. Whatever knowledge you are looking for you are bound to find something about it on the internet.

Whether it is cryptocurrency, budgeting, credit cards, frugal living, money markets and so on. All you need to have is the thirst for information and you will be amazed at the myriad of things you can learn from the internet.

What financial lesson are you applying or will you be applying today? Let me know in the comment section below.

 

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