One of the main reasons I started Wise Money Home was to help people get a grip on their finances. For so many people, it is money controlling their life rather than them controlling their money.
Statistics say that the average American would have trouble paying for a $400 emergency. My goal is to convince you how the median American can achieve financial freedom. I hope to do this through stories, videos, humor, and math.
Get a GRIP on Your Finances
While many people feel controlled by their finances, I’m here to help you take back control. You need to get a grip. What do I mean?
We have to keep growing. It doesn’t matter what age you are, you need to keep growing. Grow personally and professionally by trying new things and learning new things. If you are reading this, hopefully you are learning.
There are a bunch of ways to learn. One of my favorites is still to read a good book from the library. I rediscovered our library a year or two ago and have really enjoyed it since. I spend less money on Amazon and read a larger variety.
Another great resource is learning through a college. Community colleges offer some interesting courses. One of my new favorite ways is by taking free courses through Coursera. Coursera offers online college courses from some of the top professors in the world. It’s like college just for learning, without the grades.
Grow your income. You can grow your income in a variety of ways. The most common ways are working more hours or earning a higher rate of pay. You can seek a raise or a new opportunity.
Continue growing your skills or pursue a second job. Be willing to try new projects and ask questions. Even growing your income through annual 2-3% raises can add up if your expenses are below your income.
Reduce all the stuff in your life that is killing you. If you’re involved in too much stuff, get rid of the stuff that doesn’t add any value to your life. If you have debt, create a plan to pay it off.
Reduce your spending. I don’t believe that you need to reduce your spending to zero or give up all fun to retire early.
With a decent income, you can do it by simply prioritizing the most important spending and finding cheap/free entertainment. The main requirement is that you get your spending consistently less than your take home pay.
While small reductions can add up to a big difference, you will get more bang for your buck by reducing large expenses.
The big ticket items are housing, vehicles (including boats, RVs, ATVs, etc), food, and travel. Reducing these major expenses can really clean up your budget. Medical is another big one, but you probably have less control over that unfortunately.
A smaller house generally means a smaller mortgage. It also means less time on upkeep, less furniture, less cleaning, and less other junk to fill it.
Similar to growing, you need to invest in yourself. Keep learning. If you have a question about something, Google it, read about it, ask people questions about it. One of the coolest things about Twitter, is you can follow experts on any subject and interact in them with ways that were never possible for the general public.
From a financial perspective, investing money is key to gaining financial independence. As the sliver between your income and spending grows into a canyon, save what you need to save and invest the rest.
Once you get your money to start working for you, you’re on the right track. Compound interest is your best friend over the long haul. The Rule of 72 will help you understand how much it can grow.
Keep doing all of the things listed above. Grow yourself and your finances. Reduce your wasted time and money. Invest in yourself personally and professionally, and invest your money to grow towards financial independence.
The job of our website is to help you with all of these things. I hope we can give you some encouragement to keep on keeping on.
There are a ton of “get rich quick schemes” on the internet. This isn’t one of them. Most of them end up in the pit of misery. Dilly! Dilly!
[inlinetweet prefix=”” tweeter=”” suffix=””]Rome wasn’t built in a day and neither is financial independence. It must be built with hard work over several years.[/inlinetweet]
Get a grip on your life. Start today. Whether you are just graduating college or approaching retirement, this will get you on the right track