As a college passed out, I wanted to achieve big in life. I wanted financial freedom, luxurious life and every other thing a fresher like me will dream off. When I was talking to my mom about my aspiration, she gave me 4 golden financial rules to follow. She said,” Follow these you will become a successful person someday.” I want to share those 4 rules with you so that you can also be successful like me. You may think, well he says he is successful but I don’t know anything about him so how can I believe. You are thinking on the right lines, research and think about everything before you arrive at a conclusion.
This is how I am going to lead you into this financial journey. Now let us understand the etiquette.
Save for your future:
Your monthly financial budget will help you in identifying the basic and avoidable expenses. Housing rent, utilities bill constitute the basic expenses. You cannot do anything to minimise these expenses. The amount spent on recreation and other luxuries constitute the avoidable expenses. You should try to save the maximum money after you make all the basic expenses to enjoy a better future. More than 75% of the money left after the basic expenditure should be converted into your savings. This will give you financial freedom and confidence to pursue your dreams in the future. A bird in hand is worth two in the bush.
Increase your credit rating and not the debts.
Availability of your basic groceries and other necessities is one of the best strategies of a supermarket. Supermarkets also encourage impulse buying. Things, which you bought out of your necessity list, are considered impulse buying. Most of the time we use our credit cards to buy these items. This will increase your credit cards debts. Although purchase made using credit cards helps in maintaining a good credit rating, these purchases will not help us in achieving the long-time goals.
Instead, use the credit cards wisely to make essential purchases that are already part of your budget. This way you get twin benefits of high credit rating and leverage to save additional amounts of money. Having a good credit rating will help you in achieving bigger goals that may require you to borrow money.
Live on a bare minimum
I would have preferred to write this article sitting on my lawn looking at the meadows than sitting on a hostel bed if I had not decided to spend bare minimum. It will always important to be stringent and to spend only on the basic essentials. What do you gain by being like this? Well, by being like this you get to enjoy a much higher standard of living in future. All these efforts are towards that elusive financial freedom and a hassle-free luxurious life.
In this era of alternative, look always for alternative solutions and try to spend half of what you have planned to. If you are buying a car for short-term use, look for used ones that will serve you the same purpose as the used ones minus the huge price you need to pay for the new one. I wanted to give my girlfriend an iPhone; I bought a refurbished one, nicely packed it and gave it to in the best possible way. Do I sound like a miser? Well, I am saving money for our marriage so the amount I saved will only help in boosting the savings for my marriage. She was happy seeing the iPhone so was I seeing her.
Investments a path to success
Today there are many small terms and long-term investments options. Bitcoins, cryptocurrencies, stocks, real estates you name it you have it. It is always important to identify the right medium and platform to invest your hard-earned money. Greater rewards for small investments should be your motto while making these investments.
Research extensively on all the available investment options. Analyse the risks and opportunities available in these options. It is always important to invest in various mediums rather than relying on one. This will help you in balancing the success and failure of your investments.
Take your time and consult the experts if necessary when you make long-term investments. Investing in real estate is one of the safest options but you should also be aware of the risks attached to these investments. Experts will always help you in identifying the right channel of investments.
These are the 4 simple etiquettes you can follow to attain your financial freedom. What is life if you can enjoy the luxuries of it? To people who ask, why we should save for future when it is the most uncertain thing, my answer is” I have told you my secret to success, it is up to you to decide on which path to follow.” To the people who had doubts whether I really succeeded, follow these five steps and then come back to me to narrate your experience.