We would all love to make our money go further, but few of us ever get to the point where we have that kind of financial freedom. Partly it has to do with low incomes and falling productivity, but there are elements of it that are under your control. You don’t have to accept your going wage rate, even if you’re at home. You have other options, and they can considerably impact your wealth over the long-term. So how do you make your money go further?
Spread The Cost Of Big Purchases
It's tempting to save up all your money and then plough it into an expensive car or a world cruise. But splashing out all at once is probably a bad idea. The good news is that there are now a host of budget planners out there that let you see exactly where your money is going. Apps show you how you’re spending and what is changing over the course of months. Ideally, you want to save around 10 to 20 per cent of your income each month and put it into investments. If you can do more than that, then the results will accumulate. After several years, you’ll be in an excellent financial position.
Learn To Use Credit Wisely
Sometimes you have to borrow money to make it. It is a part of life. It is essential, however, that you do this wisely. Payday loans are great when you need to repair your car or fix your boiler. But credit shouldn’t go towards things that won’t increase your wealth in the future. Using credit wisely is a challenge. Always be sure that you’re using it for essential things that you can function without.
Make A Habit Of Budgeting
If you want to get on top of your finances, you need to make a habit of budgeting. It can be a challenge for some people, especially if spending money is a way that you make yourself feel better, but it is vital. Unless you budget, you’ll always blow through your monthly income and never have anything left over to invest. Today, the market is flush with credit. What that means is that you’re able to pick up amazing deals on many expensive consumer products where you can spread the payment. 0 per cent interest is a regular feature of the market today, meaning you don’t lose any money by spreading the cost over several months. In fact, you save money and can make extra since you still accumulate interest on the money you have in the bank right now.
Start A Side Gig
Even while we are in lockdown, there are still plenty of opportunities to start a side gig - an extra job to boost your income while you are on furlough. There are plenty of opportunities out there in today’s economy, thanks to the rise of the internet. All you need to do is figure out where you slot in and then take advantage of whatever opportunities you find.
