Financial security is something that very few Americans enjoy. In fact, recent reports have revealed that more than three out of every four American adults live paycheck to paycheck on a regular basis.
This is absolutely no way to live! As long as you’re bringing in a steady income, you should be able to find and maintain some sense of financial stability.
If you’re having trouble doing this, though, it’s hard to blame you. There are a lot of people who simply haven’t been taught how to go about getting the financial security that they’re looking for.
Today, we’re going to break down how to put yourself into a better position financially so that you don’t have to worry about how you’re going to make ends meet all the time. Here are 10 useful money hacks that will help to put more money into your pockets from here on out.
1. Start by Making a Commitment to Financial Security
Do you want to make yourself more financially secure as you move forward in life? Then you’re going to have to take a good, hard look in the mirror and commit yourself fully to it.
There are plenty of people who say that they want financial security. But they’re not always up for the challenges that might come along with it.
Being financially secure might mean that you have to skip going out to eat whenever you feel like it. It might also mean that you have to forego the chance to go on vacation with friends or drive around in a car that’s a little older than you would like for it to be.
It’ll all be worth it, of course, once you’re finally secure in a financial sense. But it’s going to be too tough for you to take if you can’t give your all to it.
You’re going to have to spend a good chunk of your time devoted to your finances and doing things like listening to The WealthAbility Show with Tom Wheelwright, CPA.
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2. Think About Whether or Not You’re Earning as Much Money as You Should
As we alluded to earlier, you’re going to need to have some steady income coming in to achieve financial security. But you’re also going to have to go a step further and evaluate whether or not you’re earning as much money as you should be earning at the moment.
If you’re stuck in a dead-end job that doesn’t pay you enough, you should do something about it in an effort to achieve financial security. You should look at some of the best-paying jobs that are going to offer job security in the years to come and see what it would take to get them.
You might not be eligible for all of these jobs. But you might be able to find one or two that would be a good fit for you. You may want to look into going in a different direction with your career in an effort to increase your annual income.
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3. Sit Down and Create a Budget for Yourself
More than one-third of American adults admit to operating without a clear-cut budget every month. If you fall into this category, you’re going to be asking for trouble.
It’s going to be pretty much impossible for you to get anywhere close to financial security without a budget. Your budget is going to be one of the most important tools that you’ll use on your journey towards the security that you so desperately desire.
It’s simple enough to find some basic budgeting tips and tricks online so that you can start putting them to good use. The simple act of creating a budget will have you thinking about your money situation in a whole new light right from the beginning.
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4. Stop Spending Money That You Can’t Afford to Spend
While you’re in the process of coming up with a budget for your monthly spending, do yourself a favor and check out all the things you’re spending money on these days. Chances are you’re going to be shocked to see how much money you’re flushing down the toilet every month on…well, all kinds of things really!
The average American household spends several thousand dollars eating out each year. The average American is also spending more than $500 each month on a car payment.
These kinds of expenses are going to kill your chances of achieving financial stability! If you don’t truly feel like you can afford something that you’re paying for regularly right now, eliminate it from your budget. It’s going to be for the best in both the short and long term.
5. Do Away With Debt Once and For All
When you set out to inch your way towards financial security, you’re going to find that debt will be like an anchor holding you back if you have a lot of it. And most Americans do have at least some form of debt.
Some people have the aforementioned car-related debt. Others have debt in the form of student loans. And of course, almost everyone has at least a little credit card debt.
If you want to become secure financially, your debt is going to have to go. You should learn about how the debt snowball and debt avalanche methods work and utilize them to make your debt a thing of the past.
6. Begin to Stash Money Away in a Savings Account for Emergencies
If you’re living anywhere close to paycheck to paycheck right now, you probably don’t have much money at all stashed away in a savings account. As a result, you aren’t going to have any money to fall back on if an emergency does happen to occur.
You should change that sooner rather than later while striving to turn yourself into a financially secure person. You’re going to need to have an emergency fund set up that you can use to cover any unexpected expenses that might pop up. It’ll help you steer clear of having to dig yourself back into debt.
Generally speaking, you should try to put three to six months’ worth of expenses into an emergency fund. It’ll ensure that a rainy day won’t come and wash away all the hard work you’ve put in.
7. Set Up a Retirement Fund for Yourself
There are a staggering number of people who haven’t done enough to save for retirement right now. More than 60% of people say that they’re not taking the necessary steps to prepare for their retirement years.
Do not let this be you! While you will be eligible to collect some Social Security benefits, they’re not going to do a whole lot for you. If you’re depending on them to keep you afloat, you might not be able to stay retired for long.
You should set up a retirement fund for yourself as soon as you can so that you can start saving money for your golden years. You’re going to feel better about retiring when you know that you have a nest egg waiting for you.
8. Resist the Urge to Try and “Keep Up With the Joneses”
Once you start to save some money and see a brighter future for yourself, your temptations are going to come calling. You’re going to see everyone around you buying nicer cars and bigger houses, and you’re going to wonder why you can’t join them.
It won’t be easy. But you’re going to have to resist the urge to “keep up with the Joneses.” It might sound appealing, but you’re going to lose the financial security that you’ve worked so hard for when you begin spending your money frivolously again.
9. Allow Yourself to Live a Little Bit Every Now and Then
While you shouldn’t start spending your money recklessly again once you start stockpiling it, you also shouldn’t turn into a hoarder with it. You should, on occasion, spend some of the money that you work so hard for, as long as you can afford to do it.
If you want to take a vacation and you’re willing to spend a few months saving up enough money for it, do it! By rewarding yourself while you’re on the path to financial security, you’ll keep yourself more motivated along the way.
10. Analyze Your Financial Goals Every So Often and Make Adjustments to Them
As you begin to get older, you’re going to find that your financial goals are going to start to change. What feels like financial security today might not feel like financial security in 5 years.
With this in mind, you should get into the habit of analyzing your goals to make sure that they line up with what you have in mind for the future at any given moment. You’ll then be able to adjust both your goals and your approach to money so that they’re always aligned.
Financial Security Doesn’t Have to Be a Pipe Dream
There are far too many people in this country who don’t think that financial security is possible. They believe that it’s something that’s only reserved for the rich and famous.
But almost anyone can achieve financial security if they’re willing to work for it. It might take years and sometimes even decades to get to a point where you feel secure financially. But you shouldn’t let that stop you from working hard to get there.
Find tons of other useful money tips by reading the other articles that we’ve posted on our blog.
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