Since the beginning of time, money has always been a concern for human beings, which has pushed them to work harder to obtain sustenance and improve their quality of life. But, to what extent is it positive to have this relationship with money? Is it something that benefits us? Or, on the contrary, does it do us a lot of harm?
If you feel that your life has become a continuous worry with money, and always trying to get more and more, but you feel that you are not enjoying your life, we want to tell you that you are not alone and that some simple solutions can modify your lifestyle and make you much happier.
We show you 6 infallible tips to stop being a slave to money and stop worrying about your day-to-day life. Pay attention and apply them!
- Keep an overview of your income and expenses
- Avoid getting into debt
- Don’t stay in a job that exploits you
- Find a source of extra income
- Start investing for your future
- Get advice and explore your financial horizons
1. Keep an overview of your income and expenses
The most important thing when it comes to healing your relationship with money is the control you keep of your finances, this involves every income you receive in a month, as well as the expenses you make, whether they are basic expenses or additional expenses, concerning whims or small eventualities that arise. This means that whenever you get income or spend money, it is necessary that you take it into account in your monthly control, only this way you will put into perspective how much you earn and how much you spend month by month.
Why is this important? Because this way you will know if there is any disproportion in your finances, that is, if you spend more than you earn, and for that reason, the money is not enough each month. If, on the other hand, you spend less than you earn, it will also be very useful to consult your control to know exactly how much of your income is left over, and if it is viable to invest it in some asset to harvest money for your future.
In addition to controlling income and expenses, it is highly recommended that you get into the habit of managing at least two bank accounts, this with the aim of allocating your money for regular expenses to one account, and your extra money to another separate account, so you will have dimension of what you have and you will know how to limit yourself when necessary. In addition, this will also be very useful if you start investing, since you will be able to open another account to measure the progress of your investments.
2. Avoid getting into debt
Although it is often necessary to use a credit card, apply for credit from a bank, or borrow money from a family member, it is not advisable to go into debt if you do not have control of your finances. This is because you may take on commitments without knowing if you will be able to pay them in the established term, this will cause the interest to increase and it will be a greater liability to pay the debt.
That is why when acquiring debt, you must weigh your financial status and know exactly how much you will be able to pay off your debt each month until the stipulated time is completed. It is always important that you can keep control of the debt since if you lose control, it will be very difficult to fulfill your commitment and this can generate stress and anxiety, as well as deteriorate your family relationships if it is a loan.
In the case of credit cards, even though they are sometimes necessary, they are not always indispensable, so you must learn to live and pay without having to use them, since over time they can become a great burden and something very difficult to manage. In addition, the use of credit cards can lead to excessive consumerism that you will not be able to solve later. If you stop using credit cards, you will learn how to save money.
3. Don’t stay in a job that exploits you
In the working world, there is nothing worse than an exploitative job. Unfortunately, it is a reality that many workers face daily, but it is something that must be stopped at the right time. If you have had a permanent job for a few years but you are no longer happy with the salary, the work environment, and the tireless overtime you have to work, then it is time to get out of there immediately.
To have a better quality of life and a healthy relationship with money, you cannot stay in a job that gives you a false sense of stability in exchange for stress, exploitation, and extreme exhaustion, as this will affect your health and your chances of finding something much better, where you are valued, earn more income and can save and get your money’s worth.
And although sometimes it is difficult to leave a place that offers you stability, it is good to start taking the right steps to look for something better, even if it is several months, but it is always better to do something to improve your situation than just resign yourself and accept what you have. There can always be something better!
4. Find a source of extra income
In addition to having a steady job that provides you with a good monthly income, you must find a source of extra income, this can be any part-time job, freelance or even some projects that you do on behalf of other people. Currently, there are many alternatives of extra jobs where you can earn a good remuneration, from the simplest ones, such as taking care of pets from home, to more complex ones, such as the position of a virtual assistant. There are even some very fun and highly remunerated ones, such as shopping in luxury stores and earning money for it.
Any way you look at it, there are many options for you to get some extra money each month on top of your regular salary. This extra money will be a turning point for you to start having more control of your finances and more financial freedom, as this same extra income can serve not only to make an expense you need but also as the first step to investing and earning passive income in the future.
Do you want to find more sources of extra income? Here we show you several alternatives.
5. Start investing for your future
Today it has become increasingly clear that people who achieve financial stability do so through smart investments, this is a fact that has been evidenced for a long time, and which is increasingly given more importance and more awareness, which is why most young and productive adults are exploring and investing in markets that will bring them impressive gains over time.
Investing in an asset makes your money start working and producing much more profits for you, instead of you continuing to work so hard. If you create a good amount of money and bet it on a smart investment, it will pay back not only the amount of money you invested, but double or even triple it, and if you multiply this over a long time and constant investment, then you start earning passive income, which will be the basis for a better quality of life and a prosperous future.
If you want to start investing, here is a comparison article on the most profitable investments these days.
6. Get advice and explore your financial horizons
Before making financial decisions, whether it is a new investment, or even acquiring debt for the purchase of a property or car, it is always good to consult a financial advisor to help you get organized and make the right decisions, as these are things that should not be taken lightly. Everything that involves your money is something important and needs to be calculated before taking the first step.
A financial advisor will be of great help to determine what your financial outlook will be in the next 5 or 10 years, depending on what your desires and goals are, this person can guide you to get just what you need without having to waste too much money or time in the process, safeguarding your economy and giving you the right tools to achieve it.
Once you have a clear idea of what you want to do with your money and how you want to invest it, we assure you that the road will be much easier and you will soon start to see the benefits of your investments and your efforts. It is always worth doing your best now to enjoy the benefits of your work later, keep this in mind!
Are you ready to leave your toxic relationship with money behind? sure you are!
Now that you have these 6 tips to stop being a slave to money, you can heal and start taking the necessary steps to improve your quality of life and bet on your future.
If you want more tips on investing and how to improve your money management, click here.