Let’s all be honest with ourselves, we all want to get ahead financially and avoid getting stuck in the rat race. No one enjoys living paycheck to paycheck and constantly feeling restricted financially. Here are a few things you can start working on to gain financial leverage and ultimately financial freedom.
1. Extra Income
To get ahead in life you have to consider having multiple streams of income! Life is much more comfortable when you have more than one paycheck to depend on. First off, you lower your risk of putting yourself in a financial bind. Secondly, you will have more cash flow for investing and will have more opportunities to grow your portfolio all together. There are many ways to begin the journey of having extra income; many millennials are utilizing Lyft & Uber to make extra money on the side. The “internet entrepreneurs” are making money through digital advertising, social media, blogging, YouTube, etc. If you have an idea you want to pursue on the side, please start executing today! There is no perfect time, and waiting only delays success. It will probably take some time but once you start making money from your side hustle it will all be worth it in the end. The key is to pursue your passion wholeheartedly, and figure out how to monetize it.
2. Increase your Credit Score
A high credit score leads to an exponential increase in buying power. Try to keep your credit card balance to a minimum, 30% or less will give you a nice boost in your credit score. Buying power means low interest rates when you purchase assets that can provide you with a solid return. Real estate will reward you with passive income and put you on the right track to gaining financial freedom. Also, erasing debt will increase your credit score; utilize the snowball effect by eliminating your debt from smallest to largest. A high credit shows lenders how financially responsible you are, and puts you one step closer to gaining financial leverage.
3. Spend Wisely
Last but not least remember to spend wisely! Think about the big purchases, before you make them. What is my ROI (Return on Investment)? Focus on assets not liabilities! After you get your assets rolling at a steady rate then use the passive income for your toys that are usually liabilities. For example luxury cars, boats, huge flat screens, etc. There is a simple saying I learned a few years back and it really helps, “I’m not there yet”. Anytime you want to purchase a liability you cannot afford just repeat that saying to yourself. It is highly likely with these habits you will get there, and who knows if you will even want it by then. Do not get too caught up in consumerism, focus on gaining financial freedom, and not just financial pleasure for a day or two. To learn more simple financial tips check out this new financial app we love called Lite! Lite provides simple financial advice for all ages!
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– Shadrach Vaughn
Contributing Writer | CEO + Co-Founder, Lite App