personal finance is a complicated topic and it's easy to become overwhelmed by
the amount of information available you may spend hours reading about money management
and come out with little to show for it money on the other hand doesn't have to be so difficult
there are a few essential principles that can make or break your financial future
and you should know them by heart if you want to establish a healthy financial future
when it comes to money a lot of what successful individuals do is simply follow common sense
concepts many of which i'm about to discuss with you so below are 19 sure fire money strategies
that will make a difference in your life 19. you cannot afford something if you cannot
pay for it in cash avoiding credit card debt by repeating this phrase is the easiest method
to prevent drowning in debt waiting to make significant purchases till you have the funds
pays off more than spending money you don't have 18. protect yourself stuff happens if you
don't have the necessary safeguards in place your financial foundation might suddenly disintegrate
from material possessions like your home to your most valuable asset and yourself you should strive
to safeguard every part of your life's work 17 happiness cannot be bought with money this one
is perhaps the only one of the bunch that isn't as money oriented but one of the most important
it doesn't matter if you have a lot of cash your emotional reaction is influenced by how you spend
your money there's a lot of evidence that spending money on experiences rather than possessions makes
you happier 16. the race will be won if you go slowly and steadily nobody achieves financial
success in a single day it'll take a long time to form excellent habits and maintain discipline
you'll never be able to realize your full financial potential if you keep looking for
the instant button or speculating and playing with your money 15. learn to be at ease in your skin
investing is one of the most out of the ordinary things you'll ever do however you must accept this
you must accept that markets will rise and fall the greatest approach to invest successfully is to
stay disciplined and follow your investment policy statement 14. your most precious asset is your
time don't fool yourself into believing you have time to catch up time is required not only for
your money to grow but also for it to recover from drawdowns the longer you invest your money the
better your chances of achieving financial success it's critical to invest early and invest wisely
13. see no evil do no evil this basically describes what happens when something is
out of sight if you are anything like most people finding a place for money in your checking account
is a breeze setting up automatic payments from each paycheck to go straight to your savings
or investments is one of the finest methods to prevent wasteful spending and enhance savings
12. money is important a lot of money is important taxes spending ratios and advisor fees all add up
to a significant amount of money they have a direct bearing on your financial situation
they can consume a significant chunk of your wealth in the long run make sure you understand
how much your investments cost you practice tax management and engage with the financial advisor
who's up front about the costs you pay directly to them this directly links to the next point
that money is your baby it's incapable of self-management consider how your children
would have turned out if you would let them make their own decisions without your supervision or
punishment the same applies to money it must be controlled with structure and discipline and it
must be maintained on a regular basis 10. your most important values should be in sync with your
financial decisions you're unlikely to achieve the goals you set for yourself if your financial
decisions don't support your most essential ideals values should govern your financial decisions
and priorities in the same way that they do in your everyday life 9. you should not have any debt
or at the very least debt-free credit card debt and other high interest loans should be a thing
of the past make on-time payments on your credit cards the sure foolproof strategy especially
to avoid credit card debt is to never charge more than you can afford to pay off each month
carrying a lot of high interest debt hurts your ability to save and invest for the future
everything else in your financial life will have to work even harder to make up the difference
eight lead the life you desire wealthy people understand the why behind their wealth
you should understand yours as well why do you work invest or do anything at all
your responses will be unique to you but it all boils down to being able to live the life you
desire that's the true goal to make your money work for you so you can achieve your greatest
financial potential however you must begin with the question why you have nothing to fight for
if you don't have something to fight for you can't live deliberately with your money because
there's nothing to guide you before we continue i'd like to know are you getting any value so far
if you are kindly like this video and if you're new welcome and go ahead and click subscribe done
great let's move on 7. track your net worth we'll get to tracking your spending and savings later in
this video but tracking your net worth has its own set of advantages you can get a better picture of
your success over time by tracking your net worth all the budgeting and hacks are great but it's
very difficult to stay motivated if you can't see your progress at the end of the day running your
stats once a month provides you with a great idea of where you are and how far you've come
over time it's similar to a diary except it's for your money we also believe that net worth is an
excellent sign of financial health and advancement get together with a financial planner immediately
and start evaluating your net worth and get suggestions on strategies to increase it over time
six pay yourself first and don't compare yourself to others when it comes to money keep in mind that
it's just that it's your hard-earned cash after all even though it may be tough at times having
the systems in place to ensure that you stay a priority is crucial paying yourself first is such
a basic concept but many people tend to overlook it or never consider it by paying yourself first
you ensure money flows into your investments or savings before anything else in theory
paying yourself is simple but it might be tough to implement if your priorities aren't in order which
brings us to the next strategy it's crucial not to compare ourselves to others when it comes to money
this means you shouldn't be concerned with what other people own or are purchasing
trying to keep up with others or feeling obligated to live their lifestyle keeps you broke
it's a nightmare for your finances to go into debt or have no money merely to feel like you
belong overspending to keep up with the who's who can make saving difficult if not impossible
ignore the hype for a moment it can be costly to live up to society's standards of wealth
the only thing that matters to wealthy people is their concept of financial success
instead of living a deceptively low lifestyle only to keep up appearances in the eyes of
their peers they would gladly flout society standards 5. spend less money than you make
by far the most significant principle is this one definitely the most fundamental common sense
financial idea you can implement you can only succeed if your monthly revenue exceeds your
monthly costs instead of living paycheck to paycheck or plunging deeper into debt because
you can't pay your bills you may put money away for the future by spending less than you make
saving at least 20 percent of your salary in a high quality bank account is a frequent piece of
advice for most people that's a reasonable aim but you should save even more if you can you'll never
realize your full financial potential if you're always overspending and living beyond your means
four maximize your income increasing your income rather than pinching pennies is the best
method to save more money even though it isn't discussed enough in the realm of personal finance
you can only save so much money by cutting back on your expenses sure you can make a few slashes
here and there but it won't last you'll eventually run out of options for cuts you're much better off
looking for ways to make more money than trying to budget your way to wealth you can increase your
income by asking for a raise finding better paying work freelancing or launching a side business
three plan for emergencies emergencies are unavoidable they can be expensive if you aren't
prepared for them you can plan for unexpected costs in two ways investing in a savings account
for a rainy day and two ensure that you have all of the insurance coverages you require
the money in your emergency fund will be used to cover any unforeseen expenses in a perfect world
your emergency fund would be three to six months worth of living expenditures saving that much
money takes time but any money saved is better than none at all open a high interest savings
account and deposit as much as you can every month to begin building your emergency fund people
frequently forego insurance only to regret it later when they are confronted with a large bill
at the very least you should have one health care coverage two insurance for renters or homeowners
and three insurance for automobiles two improve your credit score whether you like it or not
your credit score can have a big impact on your daily life your credit score will be important if
you ever want to receive one of the best credit cards or borrow money at a cheap interest rate
that's not all it does your credit score can affect your vehicle insurance premiums whether
you have to pay a deposit to set up utilities and even whether you're hired for certain professions
despite the complexity surrounding credit ratings the good news is that it's not difficult to
improve yours you'll need a credit card that you use and pay off each month to establish a
track record of responsible borrowing secured credit cards are a wonderful place to start
if you've had problems getting a credit card before simply make sure you pay your bills
on time and don't overextend your credit limit that's the foundation of a good credit score one
save for retirement retirement aka the thing that most people put off much longer than they should
you'll be better off if you start saving for retirement as soon as possible you must begin
saving for retirement as soon as possible and that you take advantage of the tax advantages that
401ks and individual retirement accounts provide aka your iras you'll allow your money plenty of
time to compound which is the most effective approach to accumulate wealth what matters
most is that you set aside money for retirement every month you'll be glad you started saving
whether it's fifty dollars a hundred dollars or a thousand dollars your investments will multiply
many times over throughout your career if you invest sensibly it's not necessary to overburden
yourself with financial advice whatever you do or where you are in life the personal financial ideas
stated above can benefit you if you follow them to the letter you'll not only be financially secure
but you'll also be able to build your wealth for the future well folks thank you guys so
much for watching if you're interested in the description is a link to money eq which is a
great finance course so do have a look have a great day and i'll see you all in the next one