Financial security in life can be a huge relief, especially before retirement. To reach financial security early in life, all while making big purchases such as a house and a car, can be quite difficult, but not impossible. Many people assume that to reach financial security, you need to completely deprive yourself off of spending any extra money. There is very little truth to that. Effective money management is all about saving money in a way, which doesn’t have a major impact on your daily spending. Author and businessman, Ronnie F. Lee discusses basic and effective money management principles and strategies in his latest book, Know Money No Problem 978-1952263583.
Growing up, Lee’s parents were not good at managing their finances. They often made mistakes that kept them in an unstable financial position. But these mistakes taught Lee all that he knows about money management today. His struggles came early in life and he used them to his advantage. Lee worked hard and did everything he could to pull himself out of an insecure financial position.
With the tips and hacks that Lee shares in his book, he was able to attain financial security. Today, he is the owner of several, successful businesses. Following his guidance, readers can turn their financial situation around for the better. To secure your future, here are some tips to help you reach financial security before the age of 30, compiled by Ken Hawkins:
· Your Greatest Financial Asset: You
Your skills, knowledge, and experience are the biggest assets you have. The value of your future earnings will dwarf any savings or investments you might have for most of your career. Your job and future career are the most important factors in achieving financial independence and security. For those just entering the workforce, future career opportunities are as bright as they've ever been. A large number of retiring baby boomers is expected to create labor shortages, and there will be room for advancement as companies scramble to fill empty positions.
· Become a Planner, Not a Saver
Research has shown that those who plan for the future end up with more wealth than those who do not. Successful people are goal-oriented – they set goals and develop a plan to achieve them. For example, if you set a goal to pay off your student loans in two years, you'll have a better chance of achieving this goal than you would if you merely said you wanted to pay off your student loans, but failed to set a timetable.
· Modest Lifestyle Costs
Many new graduates find that in the first couple of years of working they have excess cash flow, learning how to manage money is crucial at this point in life. Still used to their frugal student spending habits, they find it easy to make more money than they need.
But rather than using this excess income to buy new toys and live a more luxurious lifestyle, the best move is to put the money toward reducing debt or adding to savings. As you advance in your career and attain greater responsibility, your salary should increase. If the cost of your lifestyle lags your income growth, you will always have excess cash flow that can be put toward financial goals.
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