Life is full of little worries and concerns, many of which can grow into larger concerns eventually. But life can also be full of excitement and adventures that help you escape the mundane and all of the little concerns.
For many who live on a tight budget, it can seem as though the worries often outweigh the adventures, and it may seem impossible to live the kind of life you want without a major influx of cash.
However, you do not need to win the lottery or discover a rich relative in order to live the life of your dreams. You may not even need a promotion or a raise, if you have the right planning, perspective and priorities.
No matter how low your bank account may be or how tight your budget can get, you can still take steps towards a happy and successful life.
But don’t worry; this is not another inspirational article about being more mindful and remembering that there is more to life than money.
Of course, perspective and mindfulness are important, and there is obviously much more to life than the numbers on your online banking screen, but this is news to no one.
Perhaps younger people and idealists (especially those with wealthy parents) can ignore the importance of money, but those in the real world understand that it is at worst, a necessary evil and at best, a key to a truly free life.
This guide is designed with practical strategies on how anyone can live a better life, no matter their income level. These tips are designed specifically for saving money, so that even those on a limited budget can live a limitless life.
In This Post:
1. Continually build your credit
Whether you have good credit, bad credit or no credit, you should work on building it every chance you get. Even if you do not need to use credit for anything currently in your life, there will always come a time when you do. Credit is not only useful for credit cards, loans and the traditional uses. It is also considered on many job applications, rental applications, utility surcharges, insurance applications and countless other scenarios in today’s world.
As the professionals from My Wealth Solutions have put it “financial prosperity is no stroke of luck. Building wealth takes more than just bricks, mortar and spreadsheets. It involves innovative and strategic planning, discipline and ultimately accountability.”
Simply paying your current bills on time is one way to build and improve your credit, but you can take it further. Get a credit card that you will only use for gas and pay it off every month. Or you can even get a small loan for a conservative use and make the payments as scheduled. Credit plays a role in many areas of modern life, and you should always take steps to improve yours.
2. Develop realistic goals
The first step to a limitless life involves developing specific, realistic goals. You have to clearly define and understand what you are aiming for in terms of your short-term life aspirations and your budgeting goals.
In each category, you should try to be as specific as you can and narrow down your goals into smaller pieces which can be achieved individually.
For instance, you may have the goal of owning your own home, but you first have to begin saving for a down payment and building your credit.
You may dream of visiting Europe, but you first must save a certain amount and begin planning a time frame in which you may have the opportunity. You might want to start a family, but you first need to meet a girlfriend/boyfriend and have a stable career.
In terms of your specific money-saving goals, you should begin by being honest and realistic. You may want to save 20 percent of your monthly income, but can you truly afford to do so? You may want to cut out some luxury expenses, but can you immediately adjust to life without them? You may hope to get out of debt, but where will the money to pay the debt come from? Be conservative and take things slowly at first.
Setting goals that are too lofty often leads people to failure and giving up altogether.
3. Automate your savings
Very few people are able to save as much as they would like, but saving is crucial to living a limitless life. Not only does it provide a source of money to take your European vacation or buy your new home, it is also there for unexpected events, problems or crises.
Proper savings can be the difference between a full, worry-free life and an anxiety-ridden, indebted existence. Especially if you are inexperienced at saving money, the best way to begin is by automating the process.
You can set up automatic transfers– either directly from your employer or from your direct deposit account– for a certain amount each pay period to go into a savings account. This can remove a step for you and ensure that this amount goes directly into savings.
The idea is to have some amount of money automatically funneled into an account that is separate from your checking or other traditional spending accounts.
In the end, the way you save and spend your money are only one aspect of the limitless living puzzle. You must decide how you want to live and how dedicated you can be to achieving your goals. With the right strategies, outlook and discipline, you can live any life you want, no matter how much you make.