One of the most common New Year's Resolutions is to become fiscally responsible, for good reasons.
Financial freedom will take you to the life you've always dreamed of.
Being able to enjoy a night out without feeling guilty, filling up your gas tank all the way instead of $10 at a time... ya know, the small stuff.
I've recently reclaimed control over my finances and subsequently my life. I want to share these secrets with you as a thank you for being a Barrel & Co. subscriber.
This is an important first step. How can you go anywhere if you don't know where you want to be?
Set financial goals, such as a certain dollar amount saved by a certain date, or making a certain amount of money monthly before a certain month... whatever you think you need and want to do.
Write it down, plan how you're going to get there, and commit.
This easy to understand saving strategy really helped pull me out of the hole I was in.
Every paycheck after bills & necessities, divide the remainder into 50%, 30%, and 20%
50% goes to spending, 30% goes to savings, and 20% goes to investments. This way, you have a spending budget to enjoy life, you slowly build a savings cushion, and your money begins to multiply into more money.
Learning basic financial and business terms can really go a long way.
I always thought words like "Interest Rates" and "Dividends" were appetizers at really rich people restaurants, until I picked up a book or two.
Once you understand these basic terms, you can expand on the ones that interest you, and begin to diversify your income.
This one really kicked me into gear. I chose my parents and wealthy friends to discuss money with, mainly because they had great advice, but also because I didn't want to disappoint them.
It's common in human psychology for people to act better as a result of other people instead of acting for their own self interest.
So find some people you don't want to let down, and start talking Benjamin's!
This one was tough for me. My father is a very generous man, which is amazing and I am very grateful for.
However, as a result, he always spent more than he had, and this rubbed off on me. I always treated my friends to dinner, the movies, or a round of beers when I didn't really have the money to do so in the first place.
Taking a good long look at myself in the mirror helped me identify which habits were holding me back, and slowly I began to shed them and grow.
I know that leaving debt behind or having a financial cushion seems like some far away fantasy land, but it's not.
It is completely up to you how your financial destiny unfolds.
Here's to a prosperous and wealthy 2019!
Barrel & Co.
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