Personal Finance Wellness.

You won't be free until you are financially free!

Student loan

Best Way To Pay Off Student Loans Fast!

Student loans are one of the facilities provided by the Student Welfare Fund to meet the needs of students. Student loans have different types and conditions that students apply for these facilities according to their needs and conditions.

Students who use student loans are required to repay the loans to the Student Welfare Fund upon completion of their studies.

You may also be faced with a huge amount of different debts, but a way must be found to get rid of this situation. Repaying large amounts of debt and loans is certainly a very difficult task and may affect various aspects of life, but it is not impossible to do so. You need to choose the right path to make the debt payment process easier. In this article, we will talk about the best way to pay off student loans fast, so stay tuned until the end of this guide.

Pay Off Your Loans To Live A Happier Life.

Paying off debt is painful. At the time of repaying the student loan, you have already spent this money on university tuition, starting a business, etc. So when you repay, you feel like you are losing your money and getting nothing in return. Not surprisingly that we procrastinate our loans every month.

Any loan that pays off faster is like progress. Paying off debts quickly reduces your anxiety and frustration. If you reduce your debts, you no longer have to worry about increasing your monthly expenses and you can save or invest more money. In fact, it will significantly reduce your financial stress.

This post contains affiliate links. Please please read my Disclaimer for more information.

What Do You Spend The Most Money On?

Before you get a student loan, you need to know how much money you can spend each month. To calculate this amount, you need to budget the costs and money left over after spending the necessary monthly expenses. Do not be afraid to do this, even if you do not have any special knowledge or experience, budgeting will be easy.

The most important principle of budgeting:

Remaining money = cost – income

But why is budgeting important? In fact, doing so will show you how you spend your money. As you write down your expenses, you will probably find that your expenses are many times what you have in mind right now, as well as discovering your unnecessary daily expenses.


The Best Way To Pay Off A Loan.

The repayment of student loans depends on several factors and will vary depending on the type and amount of the loan and the circumstances of each student. What is the same in this process for all graduate students is the start of loan repayment, which is paid in installments upon completion of the course, and all students are required to pay them.

Whenever possible you should have all of these components in place for launch to maximize profits. The longer it takes to repay the loan principal, the higher the interest rate. Therefore, to pay the minimum possible interest, you should spend the maximum amount you can each month to repay the debts. To repay your student loans faster and in a shorter time, you need to observe the following points:

Pay more each month:

If you add a certain amount to your monthly installment every month, the total repayment will be reduced and it will be done in a shorter time. Let me clarify this with an example. Suppose you take out a $1,000 student loan. You are required to pay $100 per month. If you pay more instead of $100 (for example, $120) your installments will be less and the final repayment will be faster.

Get help from a part-time job:

Going to university and graduating is one of the biggest dreams of every person. Finding a suitable job after graduation is also the biggest problem that every young person faces. Nowadays, the number of university graduates has increased a lot and there is more competition between them, and even many of your competitors are taking courses to increase their skills and experience to maintain their superiority among the competitors.

But do not worry; you can get a good job by doing more work and effort. If you do not find a job that suits your education, you can start with a part-time job right now. This will both increase your savings and help you pay off your student loans.

The Key To Repaying A Student Loan Is To Stay Motivated.

Depending on the circumstances, you may owe several years. Knowing repayment methods is not helpful if you are not serious enough about paying your installments. You may be eager to repay your debts right now, but will you feel the same way next month? How about during a year?

The key to getting out of debt is to stay motivated to repay from start to finish. Start with a few goals. Of course, the main goal is to “get out of debt”, but choosing a few short-term goals is necessary to achieve the long-term goal. Before doing so, it is important to choose the right goals.

If you want to save money, get out of debt, live within your means, and attain mutual long-term goals, it’s important to discuss with your financial adviser about your approach to money management and find some common ground. Otherwise, your frugal efforts may be voided by your poor financial management and spending habits.

Invest your extra income:

Most people spend the extra money left over from the necessities of life immediately on shopping and other work. If you want to spend all your money, this is your right but why not use this extra money to make more money? Investing can be an unfamiliar and scary subject for you, but this is not difficult at all. Several options are depended on how risky you are. Some jobs have high risk and high returns, while others are more stable and reliable. With the profit from the investment, you can pay the student installments.


No matter how much you owe, there is always a truth: Debts are not enjoyable and do not pay easily. You have to face this fact now; otherwise, you will have to pay more over time. Delays in paying student loans can double that.

Try to live up to your standards. It will not be easy to do this and you may feel that you deserve a better condition but the most important thing is to get out of debt as soon as possible. When you get out of that situation, your quality of life will go beyond the ideal.

If you are facing a lot of student loans, it is time to face this fact and take your debt repayment seriously and try to get out of this situation. Getting rid of debt is a must if you want to get rich.

“If you have any feedback about best way to pay off student loans fast, that you have tried out or any questions about the ones that I have recommended, please leave your comments below!”


NB: The purpose of this website is to provide a general understanding of personal finance, basic financial concepts, and information. It’s not intended to advise on tax, insurance, investment, or any product and service. Since each of us has our own unique situation, you should have all the appropriate information to understand and make the right decision to fit with your needs and your financial goals. I hope that you will succeed in building your financial future.

Retire early

You Can Retire Early When You Want It!

The idea of early retirement may excite you, but to achieve such a dream, you need careful financial planning and some practical monetary skills. In this article, we are going to introduce you to practical monetary skills that will put you on the path to retirement and financial independence. Stay with us…

  • Have a written plan:

Having a plan alone is not the best way to plan an early retirement; but believe it or not, you can’t expect to get to the right destination by taking an unplanned route because planning is the key to your success. You need to remember that financial success is a choice.

Take the time to write down your financial goals so that they can be achieved over time. The goal is to define each aspect of your financial goals and work towards achieving them.

Do You Care About Managing Your Financial Resources?

We work long hours in life, but when it comes to management, we will be relatively weak and this is because we do not have good financial literacy. So the main priority is to invest enough time and resources to study finance. Having a financial education does not mean getting a degree, but it means knowing the basic principles of money.

This post contains affiliate links. Please please read my Disclaimer for more information.

  • Lifestyle-based income:

If you want to achieve financial success in the long run, you have to sacrifice laziness and comfort today for tomorrow. Spending money never makes anyone rich. Rather, planning for financial goals and having a purposeful life will make you a rich person. Choose your expenses carefully so that you can meet the needs of your life, but limit your needs so as not to pay too much.

  • Get started right away:

Considering the interest paid at the present age can have a significant impact on the amount of your investment. Start saving money as soon as possible so that you can achieve great financial success and prepare for early retirement.

Do not expect to become a financial genius quickly. Start saving money as much as you can. Do not expect significant growth in the beginning, but after a while, you will see that everything gets better.

  • Create wealth automatically:

Probably no one expects to be able to manage all their tasks daily, do you think you can do that? Definitely, your answer is no. You can only spend part of your resources on your retirement goals.

This is where the auto mode should be enabled. In this regard, you need to make specific financial decisions that not only increase the total number of assets you have but also add value over time; So that your life develops by the process you want.

Make It Harder To Access Your Money!

Put your money in accounts or places that are difficult for you to access and you have to go through many steps to access it.

For example, when your money is saved in some retirement plans or investment plans before you can get that money; you have to go through some steps that may discourage you. Therefore, define your financial plans in such a way that it will be extremely difficult for you to access your cash. This will make it easier for you to resist the temptation to spend.

Have Investment Insurance!

There are many different tools available today to have a portfolio of safe investments that can reduce the risk of your assets to zero. Using life insurance and investment services is one of the best ways to guarantee the future, so try not to neglect it.

Choosing a cash value life insurance as an investment strategy for early retirement might be a good idea for anyone who wants to diversify their retirement income. I think it is advisable to sit down with your financial adviser first before making this option. I say this because if it is not designed correctly, it will not provide the income needed during retirement.

  • Focus on saving:

While this may be a very basic and obvious skill, it is very difficult to practice. The safest way to achieve this goal is to set your average cost list for each month. Eventually, you will reduce your unnecessary expenses after a while.

Check to see whether your phone company offers a flat rate or a measured service plan that can save you money based on how often you call or on the times and days you usually use the phone. Put off making long-distance calls until evenings and weekends, when rates are usually lower. And you can use free internet long-distance call alternatives like WhatsApp.

If you make a lot of long-distance calls, check around for calling plans that suit the number of calls you make. And if possible, use coupons and discount cards when shopping for groceries.

Develop Passive Sources Of Income!

There is always a good idea to create different sources of income, so it is better that you exploit them so that others do not discover these sources of income.

  • Plan your risks:

As mentioned, the higher the risk, the higher the return. Remember that saving money will be a big goal for you when you are planning an early retirement. So first, before investing in any financial field, evaluate your risk.

  • Adjust your tax plans:

While you are struggling with your income, expenses, and savings, one of the factors that are completely out of your reach but must be considered is the issue of taxes. Tax planning will also be related to the post-retirement period, so you need to be very careful about your taxable investments.

  • Stay healthy:

You may be wondering how health can occupy the focal point of monetary skills discussions. However, to receive early retirement benefits, you must first be healthy.

  • Loan plan:

If you need a loan to do something, try to get it with a detailed plan and get a loan that you can afford to pay in installments.

  • Off-season holidays:

If you are one of those people who love to travel, you can not only see more natural attractions during the winter holidays but also save on your expenses. Not only are plane tickets cheaper this season, but hotels are also cheaper, and if you are looking for a short stay, try to do it on weekdays and not on weekends. These savings will become significant over a period of time.

  • Apply 5% rule :

This is not an explicit rule, but it is extremely practical and very effective. If I were to explain this rule to you in simple language, it would mean reducing the costs of your three major categories of annual expenses by 5%.

  • Track progress:

Follow the progress and never be satisfied. Put progress in saving, progress in investment, and progress in approaching goals in your life.

Keep Your Why In Front Of You.

Any setbacks you experience can be overcome financially with the help of a good plan and psychologically by remembering your why. When you first decided that you wanted to retire early, you had a vision that helped you create a strategy and gave you the drive to achieve that plan. Returning to that vision and the why behind it will motivate you to persevere through any setbacks that occur.


Planning for early retirement is not difficult but financial planning (long term); Discipline is needed to save and invest wisely. The path to early retirement is rooted in the math behind it and the development of good habits and the right mindset. So it’s better to start now. Anyone can retire early if they plan ahead of time and be discipline to do all what is required to help them achieve their goals.

“If you have any feedback about you can retire early when you want it, that you have tried out or any questions about the ones that I have recommended, please leave your comments below!”


NB: The purpose of this website is to provide a general understanding of personal finance, basic financial concepts, and information. It’s not intended to advise on tax, insurance, investment, or any product and service. Since each of us has our own unique situation, you should have all the appropriate information to understand and make the right decision to fit with your needs and your financial goals. I hope that you will succeed in building your financial future.

Understanding finance

What Is The Importance Of Financial Planning?

When it comes to money, the importance of financial planning becomes clear because many factors can affect your plans. Financial planning helps you set short-term or long-term financial goals, and in doing so creates a balanced plan for you to achieve your goals. In this article, we are going to introduce some of the important reasons why financial planning is important and give a brief explanation of each of them. Please stay with us until the end of the article…

How Do I Plan My Life Financially?

Some people spend more than the income and the amount of money they save and become more indebted every day. It is very easy to fall into the trap of such a habit and getting out of it requires a little planning and discipline. The first step is to create a budget.

Although it may seem awkward, to define a specific budget, you need to look at your income and expenses to see how much money you are making and how much you are spending. Once you have a clear understanding of your current budget, the next challenge is to find points where you can spend less or make more money to achieve your financial goals. Here are some tips to help you achieve this goal:

This post contains affiliate links. Please please read my Disclaimer for more information.

  • Find out your needs and wants:

What do you want? What do you really need? Assess your current financial situation. Look at the bigger picture, make two lists: one is your list of needs and one is the list of your desires.

  • Create a strategy:

We all have budgets according to our needs and wants. But we need to know what percentage of revenue should be allocated to different expenses. You can create a table according to your needs.

  • Check, reduce, and hit the target:

When you start researching, you may be surprised to find that you have a lot of side costs. You can easily reduce many of these costs. Reducing is usually a better strategy than cutting. You have to be realistic. This will make you more prepared for unpredictable costs.

Reasons For The Importance Of Financial planning:

There are many reasons why you need financial planning. The following ten can be part of these reasons:

  • Family security
  • Cash flow
  • Financial understanding
  • Identify financial errors
  • Increase risk management power
  • Return on investment
  • Measuring and improving asset allocation
  • The vision of the future
  • emergency
  • Planning for retirement

In the following, we will explain each of the above.

  • Family security:

The most important part of every person’s life is his family and their financial security will be the top life priorities, this issue can be an important part of your financial planning. Having the right insurance coverage can bring peace of mind to you and your loved ones. Financial planning requires that you consider the best plans for your family’s future.

  • Cash flow:

Financial planning helps you to have complete control over your cash flow through cost patterns and their nature. For financial planning, you need to consider things like careful budgeting and prudent spending. In this case, it helps you to control your cash flow.

  • Financial understanding:

In general, financial literacy is having sufficient knowledge and understanding of financial concepts and methods available, as well as using this knowledge to solve existing financial problems.

With enough financial literacy, you can easily think about your personal finances and before making a decision, consider all the available options and finally choose the best one.

When your goals are measurable, the financial effects on your life can be identified and their results examined. Your financial plans can bring a new perspective to your budget, so you can take control of your life.

  • Identify financial errors:

Financial planning can prevent financial mistakes in general. This process will include what you can do or what you need to do to solve the existing problems.

  • Increase risk management power:

If you have good financial planning, you can determine the insurance coverage you need with more confidence. So you will not have to pay too much for unnecessary insurance. In this case, your risk power for future goals and investing in them will be greater.

  • Return on investment:

With the help of financial planning, you will be able to design your integrated investment plan. In this case, you can help your goals, risk settings, and available liquidity and use it in all your work.

  • Measuring and improving asset allocation:

Asset allocation can be an important element in money management. An individual needs to find a balance between risk management, returns, and the right combination of assets. Financial planning helps you make informed decisions about your goal setting. In addition to financial planning, it also needs to be adjusted and reviewed over a period of time. This can help you achieve your goals.

  • Future Vision:

Financial planning will help you plan and act accordingly for the next 10-20 years. With the help of these programs you can easily enjoy the benefits of retirement; you will also be able to help your financial plans in case of an emergency.

  • Emergency:

Special and emergencies in life will be inevitable. So when an unexpected situation arises in your life, you can make sure that you do not stray from your financial goals.

  • Retirement planning:

While achieving your future goals can be a general vision for a comfortable life, you can also plan for your retirement. If you are planning to retire early, you need to plan as soon as possible, as this will be better for the long term.

Having a retirement financial advisor will help you to be prepared for the right expenses for your retirement. However, the advice is always to have the initial investment to achieve your life goals.


Financial planning is very important in life and work. It takes planning to get started. Planning helps us to achieve the goals we have in life.

The first thing we can achieve with planning is goals. Financial goals, which include earning money or expanding business, as well as the goals we have in our personal lives, also require financial planning.

It is good to always have a financial plan in advance for the expenses we pay in our personal life. There are different types of costs, some costs are fixed and some are variable. Good planning helps us to have better financial management. In this planning, there must be proper budgeting for every expense we have in life. In this article, we have reviewed some of the reasons why financial planning is important to you. We hope you find the article useful.

“If you have any feedback about what is the importance of financial planning? that you have tried out or any questions about the ones that I have recommended, please leave your comments below!”


NB: The purpose of this website is to provide a general understanding of personal finance, basic financial concepts, and information. It’s not intended to advise on tax, insurance, investment, or any product and service. Since each of us has our own unique situation, you should have all the appropriate information to understand and make the right decision to fit with your needs and your financial goals. I hope that you will succeed in building your financial future.

Saving at 30

How To Save For Retirement At 30.

When you are in your twenties or thirties, retirement seems to be such a distant goal that it does not seem real at all. In fact, this is one of the most common excuses people used to justify not saving for retirement. If you have such an excuse, do not miss the following article.

Anyone close to retirement age will tell you that many years have passed and it will be much more difficult to save considerable money if you do not start sooner. You will probably receive other expenses that you may not already have, such as loans and child support expenses.

You may not make much money starting a business, but you have one more thing than the rich people: time. Over time, saving for retirement becomes much more enjoyable and exciting.

You will probably pay off your student loans, but even a small amount of retirement savings can make a big difference in your future. In this article, we will find out why your 30s are a good time to start saving for the years to come.

This post contains affiliate links. Please please read my Disclaimer for more information.

Know Your Goals:

The sooner you start saving for your retirement, the better for you in the future. But you may not be able to do it yourself. You can get help from a financial advisor, especially if you do not have the knowledge to move on in the retirement planning process.

Make sure you set realistic expectations and goals and make sure you have all the information you need when meeting with your consultant. Here are some things to look for when selecting yours.

  • Your current age
  • The age at which you intend to retire
  • All your sources of income, including your current and projected income
  • Your current and projected costs
  • How much can you set aside for your retirement?
  • How and where do you plan to live after retirement?
  • Any savings account you have or plan to have
  • Your and your family’s health history to determine future health coverage

Composite interest

“Composite interest” is an important reason to start a retirement plan. Composite interest is a process in which an amount of money grows exponentially over time as interest rates increase and decrease. If you invest money in a stock exchange fund or other funds with higher returns, you will have even more significant savings.

Low Savings But Sooner Versus Higher Savings In The Future.

You may think you have plenty of time to start saving for retirement. After all, you are in your 30s and you have your whole life ahead of you, right? That may be true, but why postpone saving until tomorrow when you can start today?

Remember that the longer you wait to plan and save for retirement, the more investment you will need each month. While it may be easier to enjoy your full 30s; But as you get older, you have to invest more money every month. If you wait too long, you may even have to postpone your retirement.

What Should We Consider When Investing.

The types of assets in which your savings are invested will have a significant impact on your return on investment and, consequently, on the amount available to secure your retirement credit. As a result, one of the main goals of investment inventory managers is to create inventory designed to provide an opportunity to experience the highest possible returns. Amounts you save for short-term purposes are usually kept in cash; because the main goal is usually to maintain a high level of liquidity. The money you save to achieve long-term goals, including retirement, is usually invested in assets that provide an opportunity for growth and development.

If you want to manage your investments yourself, it is important to understand that there are other factors to consider. Here are just a few things to keep in mind:

  • Market risk:

Investments that provide the opportunity for the highest rate of return are usually the highest risk capital, such as stocks. The items with the lowest rate of return are usually the ones with the lowest risk in the market.

  • Risk-taking:

In general, the degree to which one is at risk is determined by one’s level of experience and knowledge of the investment. Likewise, it is in your best interest to at least learn about the different investment options, market risks, and historical performance.

Understanding how investing works will allow you to have reasonable expectations for your return on investment, and if you do not achieve the expected return on investment, it can help reduce the stress created.

  • Retirement horizon:

Your targeted retirement age is usually taken into account. This age is usually used to determine the duration of the re-use of market losses. Since you are in your 30s, it is assumed that investing a large percentage of your savings in similar stocks and assets is appropriate, as your investments will probably take time to heal any market losses.

Ordinary Individual Retirement Account Or Roth IRA.

How you invest in your retirement also has important implications for your taxes.

If you invest in a traditional individual pension account (IRA), you can deduct up to $5,500 in taxes for that tax year. It will increase without tax until you harvest it.

On the other hand, you can invest in a Roth IRA. You open this account with post-tax revenue; so you do not receive a tax deduction (up to the same $5500 per year). But, when you are ready to withdraw money, you have no tax on it, and this includes all the money that has been taxed during those years. Besides, you can borrow from its taxes if needed.

Invest In A Savings Account:

A savings account from your local bank may not have a high-interest rate for you, but you can withdraw or deposit any amount of money at any time. Each bank has its own rules; this means that some may require a minimum level or limit the number of withdrawals before opening. But unlike registered retirement accounts, there are no tax consequences on maintaining a savings account.

Another advantage is having a convenience savings account. You can use a savings account for everything you need, whether for short-term or long-term needs.


The sooner you start saving for your retirement, the better. When you start early, you can spend less money each month. The most important thing about saving is getting started. Compound interest benefits those who invest more in longer periods. There is a thoughtful phrase that “time is money”, especially when it comes to retirement.

“If you have any feedback about how to save for retirement at 30? that you have tried out or any questions about the ones that I have recommended, please leave your comments below!”

NB: The purpose of this website is to provide a general understanding of personal finance, basic financial concepts, and information. It’s not intended to advise on tax, insurance, investment, or any product and service. Since each of us has our own unique situation, you should have all the appropriate information to understand and make the right decision to fit with your needs and your financial goals. I hope that you will succeed in building your financial future.


Saving without 401k

Best Way To Save For Retirement Without 401k

Investing is daunting for some people, but it is one of the most important parts of generating wealth for retirement and achieving many financial goals in life. Risk is always an integral part of investing, but determining your level of risk can help you plan better in the future. To find the best ways to invest, choose a model, and set the goals you want to strive for. In this article, we look at a variety of ways to save money for retirement without a 401k. Stay with us…

How Can Investing Increase Your Wealth?

When is the right time to invest? Right now!

If you have not started yet, you have lost thousands of dollars that you could have earned over a period of time.

Using a bank rate calculator, consider a person who has invested 3% of their $50,000 annual income in 401(k) from the age of 25.

Assuming an average interest rate of 7%, a full-time employee is up to 3% and an average pay increase of 3.1% per year, that person can retire at age 65 with $1 million.

The more you try the less profit you make, which means fewer earnings over time. If the same person waited just another 5 years and started investing at the age of 30, his total savings at the age of 65 would drop to $600,000.

There is always the risk of losing, but it makes the potential to make an investment a smart choice even for cautious customers. If you are ready to start this year, start by thinking about your goals and the power of risk-taking.

This post contains affiliate links. Please please read my Disclaimer for more information.

Investment Time:

The most common reason people invest is to save for retirement, but everyone has a different goal. You can even pursue multiple goals with multiple investment accounts. You can either invest in a retirement account or save for the initial money to buy your children’s home or university. Setting your own goals can help you decide how to allocate your assets over time.

  • Long time:

If you want to invest in a long-term goal such as retirement, you can consider more risk with heavy stock samples.

  • Medium:

For those who are considering investing in retirement or investing for a decade, a varied, low-risk job can guarantee a payback. The combined investment of assets through a joint venture or a mutual fund can help you get the best return with a level of risk that will not be too difficult for you.

  • Short term:

If you have a short-term investment goal, such as saving money to buy a home or a long-term vacation after a few years, you need to be more careful about your strategy. Safer short-term investment strategies often include cash market accounts and CDs. While they do not have the same payback as joint ventures, they are a great way to raise money while having complete security.

Determine Your Risk-Taking Power:

Knowing your investment horizons will also help you measure your strengths in this endeavor. People who focus on short-term goals are less likely to take risks. To reduce your risk, and as the best practice, do not put all your chances in one basket.

If your portfolio is heavy stock, cover several different companies and industries. In this way, the recession of one sector does not do you much harm. The joint venture is a simple way to diversify.

You can also reduce your risk with different types of this work. Having a healthy mix of stocks and bonds and resetting each of them or rebalancing them as you approach your retirement or target date can keep your investment safe.

Where To Invest Your Money?

For most people, the easiest way to start investing is through a retirement account. There are many retirement options depending on how you are hired and how much you invest. You should also consider the cost of your retirement account and the type of fund or asset each.

  • Traditional IRA:

Just like 401(k), your contribution to the traditional IRA goes to a tax-free account and the tax is deducted from its profit. If you are already in an employer retirement plan, you can contribute up to $6,000 to a traditional IRA. If you are 50 years old or older, you can assign $7,000.

  • Roth IRA:

Unlike the traditional 401(k) or IRA, allocating your money to a Roth IRA is pre-tax, meaning it grows tax-free and does not pay until it is taxed. Like a traditional IRA, you can have a Roth IRA alongside an employer-sponsored program, up to $6,000 or up to $7,000 if eligible.

Donation restrictions are combination restrictions that apply to both IRA models, which means you can’t have the maximum amount for both. A bank rate guide can help you decide which model of IRA is best for you.

After maximizing your retirement account, or if you are looking for a short-term option, a deposit account is another good way to invest. While you can actively manage your fund, a flagship fund can provide you with low-cost repayments. Look for different accounts with the right management style and performance for you.

  • Mutual investment:

Joint venture is a managed instance that allocates individuals’ assets to various combinations of investments, including stocks, bonds, and so on. They will vary based on risk, performance, costs and investment strategies. Joint ventures are often a well-known tool for retirement accounts.

  • ETF:

Like a joint venture, ETFs allow you to invest in a range of stocks and bonds of different companies and sectors. ETFs are as easy to trade like individual stocks, but they offer a variety of joint ventures for the individual. ETFs are more tax-efficient than joint ventures and often come with lower minimums and lower costs, which is a great option for novice investors.

  • Money Market Fund:

Money market funds are a type of joint venture that consists of low-risk investments such as CDs and short-term bonds. Money market funds are considered a safe investment and their liquidity makes them a very good option for short-term investments of 5 years or less.


Anyone looking to invest should start by preparing for a tax-deductible retirement account. Personal accounts can also be a great way for new investors to increase their wealth with the help of an online consultant or broker.

Stocks and bonds are not the only ways to invest; you can invest in personal stocks, real estate, personal loans, or even gold.

Whichever combination you choose your chances of success increase by diversifying your profile and capitalizing on your investment with the power of risk and your time horizons.

“If you have any feedback about the best way to save for retirement without a 401k that you have tried out or any questions about the ones that I have recommended, please leave your comments below!”


NB: The purpose of this website is to provide a general understanding of personal finance, basic financial concepts, and information. It’s not intended to advise on tax, insurance, investment, or any product and service. Since each of us has our own unique situation, you should have all the appropriate information to understand and make the right decision to fit with your needs and your financial goals. I hope that you will succeed in building your financial future.

Financial literacy

Why Is Financial Literacy So Important?

What Is Financial Literacy And Why Is It Important?

In everyday life, we all face different financial issues and, we have to make decisions against each of these issues that affect our quality of life.

Issues such as where do I keep my money so that its value is maintained over time?

How do I allocate my limited income to unlimited demands to get the most out of it?

How do I plan to achieve my goals?

How can I manage my income and expenses so that I can save?

How do I manage my expenses?

Should I save my money at the bank or invest in the stock market, gold, and housing?

To answer all these questions and many other questions, one needs financial literacy knowledge. In the following, I want to introduce you to the concept of financial literacy and explain to you why knowing financial literacy is necessary for everyone.

What Is Financial Literacy?

Financial literacy is the intersection of financial management, credit, debt, and the knowledge needed to make responsible financial decisions, that is, decisions that affect our daily lives financially. Financial literacy includes understanding how a checking account works, using a credit card, and how to avoid debt.

This post contains affiliate links. Please please read my Disclaimer for more information.

In general, financial literacy affects the issues that a typical family pays attention to when trying to balance the budget, buying a home, financing children’s education, and earning an income in retirement.

The level of financial literacy varies by level of education and income level, but evidence shows that highly educated, high-income consumers can also have as many financial problems as people with lower education and lower incomes. The only difference is that the latter group will probably be more resistant to learning.

Financially Literate Person:

Having literacy helps you to strengthen your abilities and skills in the face of many situations. The financially literate person gains new insights into their behavior and performance. In the following, we examine the characteristics of people with financial literacy from 6 main areas of financial literacy.

  • Earn money:
  • Recognize your abilities and guide them to earn money.
  • Can offer his / her abilities to others.
  • Can review and compare different job options and choose the best option.
  • Recognizes the true value of the services it provides to others and the products it produces.
  • Familiar with the principles of taxation and the need to pay it.
  • Knows the difference between net and gross income.
  • Spend:
  • Knows his emotions and has the ability to manage purchases.
  • Distinguish between wants and needs: Recognizes wants and needs and can prioritize between them.
  • In bargaining situations, he has the ability to bargain and can buy what he needs at a lower cost.
  • He can know his resources, including money and non-cash assets, and understand its limitations so that he can make the best decision to spend these resources.
  • Money management:
  • It can balance its income and expenses and budget for itself.
  • Knows goal setting methods and can plan to achieve his / her goals.
  • Knows decision-making methods and can use them to make the most appropriate choices.
  • Savings and investment:
  • He knows what it takes to save and why he should save.
  • He can wait and postpone his wishes.
  • He is familiar with the function of the bank and can have a proper evaluation and comparison of different banks.
  • Knows the different options for keeping money and can choose the best option.
  • Familiar with various banking services such as checks and their rules.
  • He knows that the value of money decreases due to inflation over time and seeks appropriate options to maintain this value.
  • It can identify different risks and select the less risky option.
  • Risk management and insurance:
  • He knows when it comes to financial planning, in addition to paying attention to raising money, he must also think of ways to protect it.
  • It can identify various risks and look for ways to reduce them.
  • Knows the types of insurance and has the ability to identify the right insurance for you.
  • Credit and debt management:
  • Has the ability to recognize the benefits and disadvantages of using debt.
  • Recognizes the importance of building trust and strives for it.
  • Has a good understanding of the effects of not paying your debts on time.
  • He knows that using debt comes with a cost, and he has the ability to calculate the cost of that debt.

Why Is Financial Literacy Important?

The importance of financial literacy is because it introduces us to the basic concepts of finance so that we can make informed decisions in real life. With this knowledge, we can better manage our money, make more informed decisions, and maintain healthy spending and budgeting habit that leads to financial well-being over time.

This knowledge becomes more important to us when faced with various financial challenges. When we say that a person is financially literate, we mean that an understanding of financial concepts is essential.

Who Needs More Financial Literacy?

Some people think that financial literacy only belongs to a certain class, for example, it is thought that people who are poor and from the lower classes of society need this knowledge more.

If each of us has unlimited demands with any amount of income and coordinating these demands with the resources at our disposal is one of our daily concerns and we must choose one of the various options.

For example, to which of my wishes should I allocate the number of resources (money, time, etc.) I have? How do I achieve my financial goals? Or how can I manage the wealth that my parents inherited for me so that it does not reach zero?

How do I teach my child to realize that he is spending his money on valuables? And thousands of other questions that show that financial literacy is needed for all members of society and is related to the issues of our daily lives, so it is not related to a specific group and we all need to be familiar with financial literacy.


Financial literacy shows itself more at the time of retirement. People with high financial literacy save twice more than people with insufficient financial literacy. In other words, people with less financial literacy pay more for their wrong decisions. The group also did not invest, struggling with debt and poor understanding of loan terms.

In this article, we examined the characteristics of wealthy literate people and then explained the importance of financial literacy and for whom this issue is more important. We hope you find this article useful.

“If you have any feedback about why is financial literacy so important that you have tried out or any questions about the ones that I have recommended, please leave your comments below!”


NB: The purpose of this website is to provide a general understanding of personal finance, basic financial concepts, and information. It’s not intended to advise on tax, insurance, investment, or any product and service. Since each of us has our own unique situation, you should have all the appropriate information to understand and make the right decision to fit with your needs and your financial goals. I hope that you will succeed in building your financial future.

Managing money

Managing Income During retirement.

How do you plan for your retirement? One of the concerns of retirement is financial security and welfare. A guiding issue rooted in the shape and lifestyle of today’s economy. It is a well-known saying that making money cannot make people rich; because it is how spoiling that makes people rich. Today we look at the income, expenses, and financial plan that will secure the economic future in retirement.

Financial Management.

Financial management, in simple terms, is the set of tasks that a retiree can use to strike the right balance of income (low pension) and expenses (daily expenses, including food expenses), given the inflation of the economy. There is a need for financial management in all human beings and in all societies, but it is very important in retirement, when incomes are very low and in some cases very low below the poverty line in society.

We acknowledge that poor economic conditions, inflation, inflation, and other issues, including low wages and retirement benefits, have a profound effect on our financial approaches to life, but we must not give in to the situation. We believe that in any situation if proper planning and management are applied in our lives. We can have a life forward. In this article, we are going to talk to you about financial management in retirement.

This post contains affiliate links. Please please read my Disclaimer for more information.

We must first know how to manage the meager pensions so that in addition to not reducing the welfare of life, we can also plan the minimum for investment. In this way, we need to know what an asset is and what is a cost, and what is the difference between the two? Assets are all movable and immovable property that can be returned to us profitably and we can count on its future income. Expenses are all movable and immovable property that only needs to be paid for, without the slightest return on money.

Every time we receive money, we need to know how much of it we should spend on assets and how much we should spend on expenses. This is why, unfortunately, most esteemed retirees, at the time of receiving the retirement order, and upon receiving the retirement bonus, instead of dedicating the relevant bonus to the provision of assets, spend it on their dreams and thoughts for which they have been waiting for years. They spend and after a while, the situation will become difficult for them.

You should be able to specify your list of expenses and financial priorities during your retirement.

Financial priorities can be divided into the following categories:

• Short term

• Long time

For example, a day trip a month can be a short-term goal, and buying a car can be a long-term goal for you. Once it has fully identified and segmented its goals, it will no longer be captivated by other non-priority demands. And most importantly, when you go to the store to buy, be sure to have a shopping list and avoid buying other items that you see there.

So What Happens In The Meantime?

In the end, you either spend more money or spend part of your shopping list and make other purchases. But if you have financial management and know the priorities, you know that your purchase is a priority. And this will make you not spend the extra money and reach your goal. On the other hand, if we think only of distant times, we lose the present and joy of life.
Saving does not mean not enjoying life today. We need to manage our surplus income and save as much money as possible; because one day we will have to not eat at all. Now we have to eat less and wear economics to be able to sustain life. People who waste will one day suffer from financial and even mental and physical problems. You have to eat well, dress well, have fun, help, and live a good world; but he did not waste and saved the surplus income for tomorrow after deducting expenses.

They say that whenever you are going to talk about or for a certain class and age, it is better to talk to them first to find out what their experiences are; then deal with this issue. If you asked any retiree what he would do if he could go back in time; He will answer that I must have been planning for today and thinking about today.

Most of them say that I never thought I would reach this age. Unfortunately, some people live with the thought of who is alive and who is dead until tomorrow?! This is not the right-thinking. If we all think we will be alive now, one day we will not reach a dead end. So we need to plan for retirement today. Interestingly, about 40% of retirees emphasize the need for financial planning.

The most dangerous time to plan your retirement finances is when you are retired and just thinking about what to do. The bottom line is that anyone who starts working at any age should start saving when they receive their first income. You need to know that if you want your retirement and disability to be an opportunity to relax and unwind, think about savings and financial planning for those days from the very first earnings.

Savings should not be just money; they should also be an investment in a field of work. In fact, we have to plant a seed to irrigate it at the same time as our several years of work so that it becomes a big tree, and when we are retired and can no longer do anything, we rest under the shade of that big tree of our thinking and deep thinking.

Here Are 7 Important Steps To Save Money For Retirement:

1. Start today

Saving is very difficult when all your current income is spent on living expenses, but because the value of your capital increases over time, it is better to start saving as soon as possible. If you start saving today, you will need less money to save in the future because the value of your money will decrease over time. Create a separate bank account for savings and save all savings in it.

2. Budget

Many people equate budgeting with spending less and not enjoying life, but the truth is that budgeting will have a positive impact on your life and help you manage your money. To begin budgeting and planning for your money, you must first set clear goals. Budgeting is like a plan that guides you to spend your money on your goals.

3. Reduce your expenses

To cut costs, start with a small amount so that you do not feel overwhelmed. By doing simple things like saving money while shopping, you can greatly reduce your monthly expenses without compromising your quality of life. Making small habits on a daily basis can have a big impact on your long-term savings plan, so try to improve your financial habits every day by setting long-term goals.

4. Manage your debts

The first step in managing debt is to change the behaviors that have led to the imposition of debts on you. Many people are forced to borrow because of hasty decisions or unwanted problems, and if they do not manage their money properly, they get into debt. There are simple ways to avoid this problem: for example, avoid taking out high-interest loans, do not borrow money to buy unnecessary equipment, plan ahead for emergencies, and consult experienced and experienced people for important financial decisions, and so on. When you have an unexpected problem, think about managing your money to improve your financial situation.

5. Invest

Investing will bring you many benefits. Many people prefer to lend their money to banks and receive a fixed return at the end of each year, but if the investment is made in principle, you will be able to multiply the value of your money in a few years. There are several ways to invest, the least risky of which is the stock market. The most important thing for investing is to avoid risky investments and get information about the principles and rules of investing before taking any action in this regard.

6- Insure yourself with life insurance

Life insurance and investing is one of the ways to invest in retirement. If you insure yourself (and even your spouse) for life, in addition to being covered by special health care from the first day of insurance (more services than government insurance, such as social security), your premium will be refunded. Sizes and even allocate profits to it. Eventually, after twenty or thirty years, you will have a considerable amount of money. To better understand life and investment insurance, be sure to read this article.

7. Do not touch your savings account

The last and most important step is not to withdraw money from your savings account under any circumstances. The amount you have saved in your account for your retirement and any other use of that money will waste all your efforts to save that amount so far. In addition, the less you save from your savings account, the more you will lose money in the future. So if you have a financial problem, try other ways such as increasing income to solve your problems.


In order to spend your retirement in comfort and not think about your expenses every day, you need to think about saving your money for the future from now on. At the time of retirement, it is not possible to rely entirely on the meager pension and benefits received from insurance. The best way to not worry about the hassle of retirement is to start planning today and save some money for the future.

“If you have any feedback about managing income during retirement that you have tried out or any questions about the ones that I have recommended, please leave your comments below!”


NB: The purpose of this website is to provide a general understanding of personal finance, basic financial concepts, and information. It’s not intended to advise on tax, insurance, investment, or any product and service. Since each of us has our own unique situation, you should have all the appropriate information to understand and make the right decision to fit with your needs and your financial goals. I hope that you will succeed in building your financial future.


Investing Essentials You Need To Know In 2020!

What Is Investing?

Investment is the sacrifice of any kind of value now in the hope of gaining more value in the future, although the size or quality of this value is usually not exactly known.

In other words, we are ignoring the value of something at the moment to gain more value for it in the future. For example, with the cash with which we can buy consumer goods, we buy the shares of a company, in the hope that the value of its shares will increase and we will make a profit in the future.

Why Should We Invest?

The fact that our purchasing ability decreases over time. It seems foolish to think that if we save our money and put it together to become rich one day.

In today’s economic conditions and the fluctuation of prices and the constant rise in prices of everything, saving money is not profitable at all and it must be invested to protect the value of money against inflation, but even in countries where inflation is not high. Investing is one of the most important things that people do with their money. This shows the importance of investing in financial markets.

This post contains affiliate links. Please please read my Disclaimer for more information.

There are many options for investing in cash, from buying gold and coins and currency and real estate to buying valuable goods like cars. But this savings model is useful for those who have a lot of income and can buy the goods they want before prices suddenly rise.

But these days it is not at all economical to save money by buying gold and coins or property, because prices rise faster than incomes, and until the money to buy a coin is collected, the value of each gram of gold, and therefore the price of the coin, is higher than before. The same goes for buying a car and property.

That is, the money with which one could buy a gold coin until yesterday is not available now; this shows that the value of our assets is also decreasing day by day. So it may be best to look at other investment options that do not require a lot of capital.

Why Should You Start Investing Right Now?

Contrary to popular belief, you do not need several hundred million dollars to start investing. There is no predetermined amount to invest in, and anyone with any amount of money can start investing right now. Your most important asset in the investment market is not your money, but your time.

Some people prefer to save their money in bank accounts with predetermined interest instead of investing, but the fact is that the return on investment is greater than the profit on bank accounts and your money grows at a higher rate. The secret of the return on investment lies in its incremental return.

Increasing interest means that your profits increase in proportion to your capital each year. The most important principle for investing is to start early. The sooner you invest, the higher your interest rate and the more your investment will grow.

What Is The Investing Essentials?

The goals of economic investments are not the same. It could be an employee who earns some extra salary each month or a retired employee who has just retired and will lose her money value if she leaves the money in the bank. One may even be an employee of a large, high-income company, or even a factory owner, but he or she is always worried about what would happen if his or her company or factory went bankrupt.

Some people want to invest their money where they get a monthly profit and spend that money on daily expenses or rent. Some want to invest money for their children’s future so that they can cover their child’s college or marriage expenses years later by increasing it and making a profit.

So the first question we need to ask ourselves before we start investing is what do we want from the capital market?

How Much Can I Risk In Investing?

One of the most important factors that an investor should be aware of before starting an investment is the degree of risk-taking. Some people prefer to have a monthly profit, but they are comfortable with the principle of their capital and are sure that nothing will be deducted from it. This group probably prefers to deposit in the bank and is satisfied with the annual profit of the bank.

Others are willing to risk their money if they know that the result of this risk can be a good and acceptable profit. There is a rule in the investment world that says the higher the risk, the greater the potential return and loss.

How Much Money Should I Invest?

Of course, it is not wise for a person to invest all his capital in a market because the recession may go to that market and he may lose part or even all of his assets. It is not possible to say exactly in which market the investor will invest what percentage of his capital.

So if one thinks that the exchange rate will increase over a period, one thinks that the profit is in this market and converts all one’s capital into currency, the exchange rate may suddenly fall and this investor will suffer a loss.

The Importance Of Investing In The Growth And Development Of The Country:

If you want to invest to increase your income and capital, there are several options before you.

The importance of investing in different countries is such that many countries are taking steps to increase capital and economic prosperity.

For example, many countries grant citizenship to people who intend to immigrate, provided that the purpose of their immigration is to invest in that country.

There are different people who for different reasons want to get a second passport. Statistics show that 89% of people are interested in this issue.

There are currently more than 24 countries in the world that issue passports to individuals in exchange for investments, and these investments are made in housing or government shares.

Certainly, these policies will cause a large amount of currency and capital to enter the country and will bring significant economic growth to that country. Of course, people will want to have a second passport from another country in a situation where they see that country at a favorable level in terms of economic and welfare conditions.

One of these cases is the withdrawal of capital from banks and stock exchanges and its conversion and maintenance in the form of foreign currencies, coins, and gold, which causes many manufacturing and service companies to lose their growth and development. The order will damage the country’s economy.

Perhaps controlling the prevailing economic climate in society can play a positive role in reducing these flows.


We are living in a situation where it is not economically viable to leave a few hundred dollars unused, and it is better to invest even the low amount of money in one of the financial markets. But before we do that, we need to define our tasks and see what we want from our investment and what we expect from our financial market. Gain an understanding of the financial markets and the ups and downs of their profits and losses and choose the most appropriate ones. But if we do not have the patience to get involved with the news, rising and falling prices, and stress, the investment fund is the best option.

“If you have any feedback about investing essentials you need to know in 2020, that you have tried out or any questions about the ones that I have recommended, please leave your comments below!”

NB: The purpose of this website is to provide a general understanding of personal finance, basic financial concepts, and information. It’s not intended to advise on tax, insurance, investment, or any product and service. Since each of us has our own unique situation, you should have all the appropriate information to understand and make the right decision to fit with your needs and your financial goals. I hope that you will succeed in building your financial future.

5 ways to increase credit

5 Ways To Increase Your Credit Score Fast.

The global situation with Covid-19 has changed many things in our lives – how we live, how we earn money, and how we spend them. The pandemic has had a huge impact on the economy all around the world, and although we may not notice it yet, but these changes will show up later.

Taking all of this into account, we need to be prepared for any turn of events. One of the things that will help us financially is improving our credit score. We heavily depend on our credit score whether we want to apply for a credit card or get a loan or a mortgage.

In this article, I’m going to offer you a few tips that will help you increase your credit score fast. So let’s get started!

Mind Your Credit Utilization Rate.

The credit utilization rate is the percentage of your credit limit that you have used during the month. Not only each credit card has this rate, but also every person has an overall credit utilization rate in their credit history. The key to improving your credit score is to keep this rate as low as possible. That’s great if you could keep it at 30%, but if you manage to reduce it to 10%, then your overall credit score will improve instantly.

This post contains affiliate links. Please please read my Disclaimer for more information.

Here are a few details you need to keep in mind though. First of all, try to keep low not only one of your credit cards, but also your overall credit utilization rate. Secondly, call your creditor to find out when they send your credit reports to the credit company. This will allow you to pay off the credit by that date that will improve your credit history. You’ll learn more about it in the next tip.

Break Your Payment In Half.

The credit reporting companies see our credit history not the way we see it. The thing is they receive the reports from creditors only once a month (and the date is different for different companies). So let’s assume that the limit on your credit card is $1,000. You use it to pay for everything, so by the end of the month, you achieve your limit. But even if you paid it off a few days later, your credit information may have been sent to your credit reporting company already. So what will they see? They will see that you’ve used 100% of your balance and haven’t paid it off yet.

Let’s say, you have a rewards credit card, so in order to get the rewards, you need to use it as much as possible. Luckily, there is a trick that may help you improve your credit utilization rate and still get the rewards. All you need to do is to break all your payments into two parts. And in case, you have a big purchase coming up, be ready to pay it off as soon as possible.

Keep Your Credit History Clean.

Collection accounts – no matter whether they are paid off or not – are a huge threat to your credit score that will play an important role in the case, you apply for new credit or loan. In case, you have an unpaid collection account, make sure to pay it off as soon as possible. But if you have a paid-off collection account, you need to contact your creditor and ask them to remove this information from your credit history.

Any mention of debts or late payments in your credit reports can be used against you. It would be perfect if you could pay off your credit on time to avoid any negative consequences, but even if you have a record of late payments, try to have it excluded from your credit report history to avoid any difficulties in the future.

Raise Credit Limit On Your Card.

If you have a higher limit on your credit card, let’s say $5000, but still, spend the same amount as before, your credit utilization rate will decrease automatically that – as we have learned before – can have a positive impact on your overall credit history.

There are two ways how you can do that – you can simply ask for it or apply for a new credit card. Now, the second way has a couple of pitfalls you need to know about. First, applying for a new card makes your creditors do a more close review of your credit history. And if it`s not perfect, you can be rejected for a new credit card. Also, if you open a few new accounts in a short period of time, it may get suspicious and harm your credit history.

All in all, be very careful using this tip. Even if you manage to raise your credit limit, there is still a risk of getting carried away and spend more than you can pay off.

Get A Friend’s Help.

If you have tried everything else, but still couldn’t improve the situation, maybe it’s time to ask a friend for help. For this tip, you will need a very good friend who has a perfect or next to perfect credit history and a low credit utilization rate.

If you have a friend like this, ask them to add you as an authorized user to their credit card. If they decide to help you, their credit account will appear on your credit report as well. And as long as they proceed with their payments on time, it will improve your own credit report too.

The only difficulty you may face here is that you will need someone who really trusts you because technically they’ll need to give you access to their account and allow you to spend money in their name which can be a very sensitive matter. But if it works, you will improve your credit situation a great deal.

Final Word.

Keeping your credit score high is not a difficult task and demands mainly just consistency and some common sense. Basically, to do well on credit reports, you need to do two primary things: do the payments on time and keep your balance low.

If the situation doesn’t improve, give one of the tips I’ve shared above a try, and I’m sure very soon you will see your credit score improving.

“If you have any feedback about 5 ways to increase your credit score fast that you have tried out or any questions about the ones that I have recommended, please leave your comments below!”


NB: The purpose of this website is to provide a general understanding of personal finance, basic financial concepts, and information. It’s not intended to advise on tax, insurance, investment, or any product and service. Since each of us has our own unique situation, you should have all the appropriate information to understand and make the right decision to fit with your needs and your financial goals. I hope that you will succeed in building your financial future.

Cash flow

How To Increase Your Cash Flow.

With the current events and chaos about the COVID-19 and economic downturn, many American families are struggling to make ends meet. There could not have been a better time for people to evaluate their family’s cash flow and find more ways to increase their cash flow during this devastating moment in our country’s history. Personal Cashflow management is a boring thing to do for many people. Do you agree with me?

The Importance Of Personal Cash Flow.

Most people cannot get ahead financially because every month, they have bills to pay. They have phone bills, tax bills, electric bills, gas bills, credit card bills, food bills, and so forth. Every month, most people pay everyone else first and pay themselves last, if they have anything left over. Hence, most people violate the golden rule of personal finance, which is, “Pay yourself first.”

The primary reason most people have money problems is, they were never educated in the science of cash flow management. Many Americans were educated on how to read, write, drive cars, and swim, but they weren’t taught how to manage their cash flow. Without this education, they wind up having money problems, then work harder believing that more money will solve the problem.

This post contains affiliate links. Please please read my Disclaimer for more information.

To save towards your goals, you need to have enough money available with you for investments, and for that too, cash flow understanding is a must. If there’s not enough money then either you have to rework your goals or have to generate enough surplus by following a budgeting technique and both involve personal cash flow understanding. Proper cash flow management begins with knowing the difference between an asset and a liability.

Ways To Improve Personal Cash Flow.

  1. Cash Inflow – This refers to cash that flows from another party to your assets
    1. The income you earn from your job, your side hustles like tuition, a weekend job
    2. Cash flow from your savings deposit, stocks, bonds, business, and properties
    3. Reimbursements from your employers, friends to who you lend money.
    4. Gifts received as cash.
  2. Cash Outflow – This refers to cash that flows from your assets to another party’s accounts.
    1. Your spending on your family, yourself.
    2. The money you lent to friends and family.
  3. Net Cash Flow – This refers to the aggregate of your cash inflow minus cash outflow. If your net cash flow is positive, it’s a good situation to be in. If your net cash flow is negative, there are some personal money management problems there that you need to resolve.

How To Reduce And Eliminate Your Personal Debt.

You should pay off credit card debts, car loans, college loans, and any other loans you might have so the only debt you have left is your home mortgage. Why do we make an exception for home mortgages? Because buying a home is so expensive that most people find it impossible to own a home without first getting a long-term loan from a financial institution.

Your home is also an investment over the long term, so there is good justification for owning rather than renting for so many years. But all other debt besides your home mortgage is manageable – and should be managed aggressively.

Your first priority should be to eliminate debt so you can start your investment program with a clean slate. Your second priority should be to build up a small reserve of cash to fall back on in case of an emergency. Once those two priorities have been met, you’re ready to begin investing in earnest for early retirement.

Live Below Your Means.

Learning to live below your means is crucial if you want to increase your cash. To achieve financial independence you need to build capital, and the only way to do that (without help from an outside source) is to make more than you spend.
The gap between making and spending has to be big enough that you can put a significant amount of money aside every month, year in and year out, for the sole purpose of investing.

One way to increase the make-spend gap is to increase your salary – which is why we suggest you invest in yourself first. The other is to alter your spending habits until you are living well below your means. To achieve financial independence, most people need to tackle the problem from both ends – making more and spending less.

This two-pronged approach gives you the best chance of widening the gap dramatically enough to make a real difference. We’ve already discussed the importance of investing in yourself first, so let’s move on to the other side of the equation, spending less.

Make A Long-Term Investment Plan.

Set a long-term financial goal for where you want to be in 5 years and a smaller, short-term financial goal for where you want to be in 12 months. (The smaller financial goal is a stepping stone along the way to your 5-year goal.) Set goals that are realistic and attainable.

When making a long-term investment plan it helps to be able to clearly state your goal so there is no confusion about where you are heading. For example: “I want to retire in 15 years and have a nest egg of $1.5 million in order to generate $60,000 in income annually.”

To be able to put together a goal statement like this you need to work backward, in essence, and complete three steps:
1. Estimate your yearly income needs once you retire.
2. Calculate your nest egg based on these yearly income needs.
3. Put together a detailed plan outlining how many years it will take to save up your nest egg and how much you’ll need to invest each year.

If you have been actively working for a while now, you may already have an initial sense of the number of years until your target retirement date, but completing this step will help you refine that understanding. By the end of it, you’ll have a much better grasp of how much you’ll need to invest each year to accomplish your goal in the desired number of years.

Increasing Your Cash Flow Is A Decision.

Pay yourself first. Put aside a set percentage from each paycheck or each payment you receive from other sources. Deposit that money into an investment savings account. Once your money goes into the account, and never take it out until you are ready to invest it.

Automating your payments makes it far more likely you won’t skip out on a payment to yourself. It forces your hand in a way, which isn’t all bad when you consider how many other things in life are calling out for you to spend money on them.
The siren call of spending is a little easier to resist if you tie yourself to the mast like Odysseus and give yourself no other choice but to stay the course.

That said, be sure to leave yourself a little buffer when you select your monthly investment amount so you aren’t pushing right up against the limits of what you can handle financially.
Better to select a smaller amount you know you can manage month in and month out than to push too hard and find yourself strapped for cash in any given month.

Consistency is your goal, not stress, and financial hardship. Let your monthly contribution to your future be a positive aspect of your life, something you can feel good about, rather than a negative burden that puts a strain on your existence. You have to start building a realistic budget and cut down on your spending to manage your cash flow and liabilities. It may seem simple, but paying closer attention to your finances could be what will drive you to new hope for a financially free life.

“If you have any feedback about how to increase the cash flow that you have tried out or any questions about the ones that I have recommended, please leave your comments below!”

NB: The purpose of this website is to provide a general understanding of personal finance, basic financial concepts, and information. It’s not intended to advise on tax, insurance, investment, or any product and service. Since each of us has our own unique situation, you should have all the appropriate information to understand and make the right decision to fit with your needs and your financial goals. I hope that you will succeed in building your financial future.

* Saving Your Future (