Whether you are single or married, own your home or rent, or are a boss in the boardroom, there are certain things all of us can do to thrive financially.
In fact, whether you consider yourself financially savvy or not, the tips in this article can help you financially thrive and conquer!
Check out 6 ways you can thrive financially and start implementing these tips into your day-to-day money habits.
6 Ways You Can Thrive Financially
1. Diversify your assets
One of the quickest ways you can invest is through an employer-sponsored retirement plan. Do you have a 401k? If this is not offered, have you considered an Individual Retirement Account (‘IRA’)?
Not familiar with the term assets? It simply means things you own that appreciate in value and puts money in your pocket. You don’t just want to purchase assets but you need to diversify them.
In simple terms, it means to have a mixed bag of investments within a single portfolio. You never want to have your eggs (money) in one basket (investment). When you have multiple investments you spread the risk.
2. Invest in your future
When it comes to your personal and professional development you should never be cheap. Knowledge learned cannot be taken back. To elevate to another level requires sacrifice. Investments can also be tangible. You cannot save your way to wealth.
Therefore, invest early so that you can take advantage of long terms gains through compound interest. There are many apps you can use that show you a forecast of what your returns would look like.
3. Take control of your credit
Cash is king but credit is a close second. Having a good credit score helps you attract better interest rates as you are deemed responsible and trustworthy by lending institutions. It helps you get approved for loan facilities.
It is imperative that you use your credit wisely and be aware of the areas in which you are scored. For instance, paying your bills on time and making sure that your credit utilization ratio does not exceed 30%.
4. Set your own money goals
Even if you are in a relationship, it’s important to set some individual money goals. Make sure that your goals are something that you want to do. Not what your family, friends, or peers tell you, you should do. They should align with your values, and the vision you have for your life.
I’m not saying that you shouldn’t have goals with your partner but prioritize your wants and the things you want to accomplish and you should wish the same for them as well.
Remember, if you run into some challenges in achieving your goals, don’t change the goal, change your approach.
5. Leave an inheritance for your children
Do you currently have children or want to have some one day? Then do them a favour and set them up for success now! You can do so in a variety of ways.
You can open a college fund for their tuition costs. Get them set up with a thrift savings account and contribute to it regularly. Gift them a piggy bank so they learn the value of giving, saving, spending, and investing.
Financial literacy isn’t taught in school so you become their financial coach at home. Include them in your day-to-day financial decisions.
However, make sure that you have your own ducks in a row.
6. Keep a cash reserve on standby
You never want to be left hanging when crap hits the fan. You want to be able to recover quickly because if you are not prepared it is hard for some to put themselves back to the position they were in before the emergency.
Savings gives you a sense of peace and security as your wealth grows. Grow your beginning reserve with one month’s worth of living expenses and increase from there.
Cash reserves should be a priority no matter your income level. Stability is the goal so that a crisis becomes an inconvenience.
Slowly work your way through these six tips on this list so you can thrive financially. You’re so worth it!
Do you have any of the above tips in place currently? What actions or habits help you feel financially in charge? Drop a comment below to share!