But here are three tips you can do today to secure your financial future better.
More money isn’t necessarily going to solve your financial problems. Yes, it’s hard to believe, and I know some of you are rolling your eyes at me right now. Though there is such a thing as earning too little, and having more money can help you pay off debt, but it’s no coincidence the majority of lottery winners end up broke.
According to the National Endowment for Financial Education, as many as 70 percent of people who find themselves suddenly wealthy, lose it all in a few years.
“You have to know where your money is coming from, and how much you have coming, and then you’ve got to know where it’s going,” says Kevin Foster, T.R.W. Credit Services owner.
Though more money could help solve some of your financial problems now, Foster says learning to understand a budget and your personal finances is just as important as getting out of debt.
“Although that is a temporary fix, if you don’t change your mind set about money, and you don’t change how you spend money, then more money doesn’t fix the problem, it accelerates the problem,” says Foster.
Here are some top money tips that may help reframe your financial mindset in case you find yourself with a new found fortune, whether you hit the jackpot or go a new raise at work.
- Make sure you are working on an emergency fund: Three to six months of your current expenses saved is how a healthy emergency fund should look. For many people this level of savings happens over time, but be sure it is only used for true emergencies. Also be sure to build the savings should your expenses increase.
- Have retirement fund that you are actively putting money into. This will keep you protected after your done working. If your company has a retirement fund match, putting the maximum amount your company will match away.
- Don’t depend on credit.: Whether you are wealthy or middle class, depending on credit will set you up to fail if something happens, and you are unable to pay that debt.
Developing better habits will in conjunction with earning or having more money will be what actually helps you pay off debt and build a savings, and you can start developing those habits without being a millionaire. Source
Here’s my question to you for today:
What part in your money mindset are you willing to change today to get the financial life you dream of?
Be sure to leave a comment below, and I’ll get back to you.
To your success,
Robert
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