If you want to protect your future, in a financial sense, then you need to aim to do more with your existing income. You might be able to do more with your salary than you think. The problem might simply be that you’ve developed bad spending habits, or you’re not making investments that could be increasing your overall wealth. Here’s some advice that’ll help you out in this regard.
Save on your monthly bills and expenses.
The first way in which you could do more with your existing income is to start saving on your monthly bills and expenses. If you want more available earnings to spend on the things you enjoy in life then you need to stop wasting your income unnecessarily. And this starts with the essentials. You could save money on petrol by using your car conservatively, for instance. You could aim to start walking on trips that are less than 10 minutes (by car). You could also save money on your food shop by searching for online coupons and discounts before you buy your goods. You could save a lot of money on a weekly basis by doing this. There are plenty of ways to reduce your necessary expenses without making compromises.
You might even be able to save money on the non-essential costs you face on a monthly basis. For many people, the answer is simply to give up on the luxuries that they enjoy, but there are ways to cut your costs and still enjoy the finer things in life. For instance, you could save money on your TV subscription by searching for cheaper providers; Netflix and Amazon both offer incredibly cheap prices for a ridiculously large range of shows. And, it’s a little cheeky, but you can often save money on subscriptions by trying to cancel them. Sites such as NowTV will often offer a huge discount on your monthly subscription if you think of leaving. Sometimes, after you leave, they’ll offer you a free trial to get you to subscribe again.
Manage your debt responsibly.
Paying off debt as quickly as possible is one of the smartest ways to utilise your income. As scary as it might seem to owe money to lenders, paying it off can be massively beneficial to your financial situation. The better you are at paying back loans, the better your credit score will be. And that’ll make it easier for you to get the loans you need in the future for any big purchases you might only be able to afford in installments. It’s a fact of life for the majority of people that you have to borrow money, at times, in order to cover the big costs you face. For example, you probably had to take out a student loan if you went to university. Rather than burying your head in the sand, you have to master the art of managing your debt responsibly if you want to protect your earnings. Do more with your existing income, and start paying off any money you owe.
Prepare a “rainy day” fund.
Another way to do more with your existing income is to prepare a “rainy day” fund. Rather than blowing through your disposable income on luxuries, you should be aiming to set aside a small amount of it for the future. Obviously, you should be gradually building up a savings account for your retirement and, perhaps, for your children too. But you also need to think about unexpected costs that might arise in the future. You don’t want to be dipping into your savings or your bank account every time you unexpectedly need to pay for something to be repaired, for example. This could mess up your monthly budget. But, you could start setting aside some earnings for a “rainy day” fund (and you could account for that in your budget). This means you’ll always have a backup option if some unplanned expense arises out of the blue.
Of course, some unexpected costs in life can be astronomical. Maybe you’ll face a costly car breakdown, or maybe your house will be unexpectedly damaged by natural causes. If you don’t have the emergency funds necessary to cover an event that takes you by surprise then you might want to look into loan options to help you out. As discussed earlier, managing your debt responsibly will put you in a good position for such an eventuality, but you can look into options such as a loan for negatives if you’re struggling to borrow the money you need with your existing credit rating. This is great for people with negative credit ratings. As long as you’re able to pay off your debt on time, as mentioned earlier, then this could be a good financial safety net in the event of an emergency. However, your “rainy day” fund should be sufficient for most unexpected expenses in life.
Do you just sit on your earnings and let them gather dust? One way to do more with your existing income would be to start investing. Your fixed salary might give your financial stability, but you could massively increase your wealth if you pursued additional sources of income. Earlier, we talked about the importance of saving some of your earnings, but you should be aiming to set aside a small portion of them for investments too. You could even get stuck into the property market if you’re interested in making big returns on your investments. For beginners to the world of investment, this is usually a very enticing industry. It’s a little easier to understand than the stock market. Everybody understands the worth of property, after all; the market fluctuates, but houses and flats are always valuable assets. People always need somewhere to live, after all. You could also try investing in Bitcoin before the market loses interest in that too. The point is that you could be doing more with your existing income. Saving it is important, but you’ll be saving your financial future if you start striving to increase your wealth.