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There’s no escaping the fact that money matters – a lot. In recent years, there has been a BOOM in the personal finance space. Most notably marked by the countless websites and blogs dedicated to helping you with your money. If you’re asking yourself why, here’s the answer. Most people stink at managing money. So they avoid it until they’re sufficiently miserable with financial headaches (quite literally) that they must take action to change their habits if they want a shot at a comfortable future.
And with that, here are five crucial areas where a whole lot of financial information and a little extra effort goes a long way.
Increase Your Income
Never underestimate the power of more income. Whether it be negotiating a raise from your current employer (most effective way to get more money, BTW) or starting a lucrative side hustle, more money is inevitably better. Unless of course you plan to blow it on new clothes and fancy vacations, in which case more money won’t matter a hill of beans. I have always wanted to use that expression. Ha!
When considering your income, It’s super easy to fall into the trap of accepting what you’re currently making as set in stone. But it’s oh so important to keep in mind that you have all of the power when it comes to your income limitations. In short, don’t allow yourself to have limiting beliefs that translate to a low income.
If you love your current job and want to keep it, go after a raise with fervor by presenting the facts with why you deserve it. Just make sure you do. 🙂
If you like your current job but you’re also interested in trying your hand at a side hustle, start by taking inventory of your skills and interests. Then, go for it!
Side hustles can range from pet sitting to delivering pizzas to teaching a language. It’s possible you can start a side hustle in a matter of minutes, or it’s possible you’ll need to invest a little money to get up and going. Either way, it’s worth trying.
For example, if you’ve always been interested in learning a new language, you could possibly use that new skill to teach, both in person and online. Or, if you think you’d be great at baking sweet treats for special occasions, do a few batches and hand them out for free to your family and friends. If their response is unbelievably favorable, you just earned yourself a side hustle with limitless potential for extra money.
By increasing your income, whether via a raise or side hustle, you’ll be well on your way to eliminating those financial headaches. Woot woot!
Reduce Your Expenses
Everyone has the ambition to increase their earnings. In reality, though, your financial pulse is also influenced by your expenses, too. Like I said earlier, if you’re just going to blow extra money on new clothes and fancy vacations, you might as well just not make it in the first place.
Okay, that’s a little harsh. If you value nice clothes and fancy (yet memorable) vacations, it’s completely acceptable to spend extra money on those things. It’s only ill-advised when you’re dealing with financial headaches that should be higher on the priority list.
But, if you happen to have all of your financial ducks in a row, then you have earned membership into a very exclusive club. By all means, buy the shoes and book the trip!
So, where do you start if you want to reduce your expenses to create additional income? Start with a budget and gauge how much you’re spending on various things like groceries, insurances, utilities, cable, internet, etc.
We were able to greatly reduce our monthly expenses by paying close attention to details. You might want to check your broadband speed, mobile data usage, the amount of electricity you’re using, and whether or not cable TV is actually worth it. Cut backs in these areas could amount to unbelievable savings. And when you free up money by reducing your bills, you might be able to skip the side hustle altogether!
Hire A Tax Professional?
If you’re like most people, you just cringed reading the title of this section. Not to worry, taxes aren’t as scary as you might think. Assuming you keep good records throughout the year and file them within the allotted time period, taxes really shouldn’t contribute to your financial headaches.
Although we have done our own taxes in the past, we have recently started paying an accountant to do them for us. Because Mr. MMM and I have two businesses (his business and this blog), we want to make sure we’re not missing any of the important stuff when we file.
Paying for professional help can seem counterproductive, but it’s actually proven to be a great move for us. It saves us time and preserves our sanity, too. A little research into a few additional details should help you decide whether it’s also the right move for you and your family.
Other articles you might really like:
- How We Slayed The Debt Monster
- Don’t Be Ashamed Of Your Financial Story
- Shifting To A Frugal Mindset Has Given Us Options. Tons Of Options.
- Our Surprisingly Lazy (and Free) Money Management System
- Your Overview Of Bitcoin
- Making Money From Money: 4 Ways To Invest In Currency
- Our Incredibly Simple Hack For Cheap TV
- Doing Your Own Taxes Isn’t As Scary As You Think
- 13 Easy Tips To Take Control Of Your Money
Invest For Your Future
Since the elimination of pensions and the introduction of the self-guided 401(k) retirement investment strategy, investing for the future has become extremely important.
While there’s no doubt that investing for your future must be a priority in order to avoid eating cat food in retirement, there are still risks you need to be aware of.
Although investing for the future in essential, investing all of your money into cryptocurrencies might not be the wisest decision. We tend to gravitate towards the set-it-and-forget-it investing strategy of low-cost index funds. But, we also like real estate. Despite your strategy, the goal for any investor should be diversification. So, if you’re able to check that box, you’re light years ahead of someone who is ignoring their money altogether.
Unfortunately, financial headaches are quite common in today’s fast-paced, consumerist society. Fortunately, combating this epidemic is as easy as paying attention to your financial situation and making the appropriate adjustments to yield positive change.