It is true and obvious that this year is winding down, but that shouldn’t affect your financial goals for the year. Many people started this year with great financial objectives, but they have unfortunately not even begun working to actualize them. This has made this year unproductive for them and the coming years uncertain. But it doesn’t have to be if they will learn the wisdom of how to save more and spend less in life.
We are going to examine 7 financial tips that can get you out of debts into financial freedom. This is not really about making more money…even though it is certain that is what you’re eager to hear. The truth is that there is no point making more money if money escapes your fingers; there is no point getting more if it doensn’t stay with you. This piece is almost everything you need to know about making and keeping money for personal freedom and lifetime happiness.
Here are 7 financial tips to help you save more and spend less in every situation:
- Making money and keeping money require active proactiveness
One of the first lessons you will have learnt in life is that it is not easy to make money. The second lesson is that it is not easy to keep or save money. Reasons are that money doesn’t grow on trees, and human wants are unlimited. So to make and keep money requires personal efforts and will, and this is where self-discipline and financial education comes in. No one will offer you free money or help you to save money. So you must start dedicating all your strenght today to making and saving as much as you can.
- Ask for the wisdom of others in making and saving money
If there is one lesson you must learn in life, it is this: there is always a better way to do something. There is always a better way to make more money and to save more money. You can learn this better way by asking others how they are able to overcome financial struggles. You can speak to finance experts, money teachers, investment gurus, astute businessmen, minimalist housewives, and aged investors. Tap into their knowledge of how they earn and apply money to every situation to keep them above board.
- Create more sources of revenues
Do you know why the sea is never dried up? It is largely because hundred other rivers empty into the sea. You can’t achieve much in life with only one source of income…what of if anything happens to the source? Nigeria is now trying to diversify into other sources of revenue generation due to fears that the oil wells are drying up. What will happen if Nigeria no longer has exportable oil? You need at least four sustainable sources of income to be able to achieve financial independence anywhere in the world.
- Strive to always spend less without compromising values
One of the best ways to spend less is to differentiate between needs and wants. Needs are what you cannot do without such as food, clothing, rent/mortgage, education, etc; wants on the other hand are desires for latest smartphones, trendy wears, junk foods, exotic cars and vacations, etc. You must always spend on what you NEED RIGHT NOW and never on what you might need next year. You must always buy what provides immediate value and satisfaction and never on what you see others buy or desire. And one more thing: always buy from the cheapest source. And another thing: always postpone what you don’t need urgently.
- Own capital by being a business owner
Need that be explained more? Be in control of factors that generate money. Be in control of machineries and systems that produce incomes. Be in charge of people that work to make you richer and put food on your table. Be in control of situations that ultimately yeild cash. Own businesses and be in control of factors of production. You can’t be a millionaire by being a salary earner. But you can be a millionaire by paying others to work for you. You can only be financially independent when you have people work to pay you, and not when you labour to pay others as an employee.
- Stay out of debt and learn how to manage debt
Debt has a spirit of its own. There is something demonic about being a perpetual debtor. And it could also be a case of plain stupidity and lack of financial education. According to Ajamu Loving, Ph.D, Professor of Finance at The American College of Financial Services, “Without a strategic debt management plan, you will likely continue to accrue debt which puts you further behind and makes it harder to escape. However, debt management is also just as much about avoiding future debt and looking for areas to cut back spending or at least, spend smarter.”
- Let married couples make money but live on the income of only one spouse
That is plain enough. Before you go into marriage, ensure you are earning good money and your spouse is also earning good money. Then after marriage, ensure you keep the family running on the income of one spouse while the income of the other spouse goes into saving for future projects. Try to base home expenses and needs on the income of only one spouse, and then save up the income of the other spouse for future needs and projects that would ensure comfortable retirement and future wealth.