What is “Savoring” and How Can it Help You Build Wealth?
The secret to financial freedom is not as extravagant as you may have otherwise thought. The fact of the matter is that careful planning and being smart with your money in the short-term will produce long-term benefits. Here’s what we found are the most important:
One of the most common ways people fail to save and build wealth is by associating pay increases with more to spend. For example, getting a job raise does not necessarily mean the smart financial decision is to buy the Tesla you want when it’s just barely in the budget. Those that are smart with their money use additional funds to invest, whether that be in your future by saving or investing.
Simply put, inflation means that money is losing the value that it previously had. For money that is just sitting in a savings account, this means that even though you’re not spending the money, it loses value as it’s there. The best way to beat inflation is to invest your money and use the power of compounding interest to your advantage.
Budgeting is the ultimate way to keep yourself on track as it allows you to plan out where your money should go and how you spend it. The smartest with their money will use budgeting as a means to pay for necessities, save what they need and also invest the excess. The more you budget, the more control you have and the less money anxiety you experience.
You can use our free budget template.
Emergencies are unplanned and many times have the potential to be a significant setback for people. Setting up an emergency fund allows yourself a cushion that prevents unexpected events from disrupting your financial progress. In a sense, you’ve written in the emergency into your budget.
We are nothing without good health. Modern day culture loves to push the grind and hustle lifestyle, but many times fails to urge people to rest and reset. When you prioritize self care, you ensure that you can continue to achieve your goals without the threat of burnout and the illnesses brought by stress and overworking.
Simply put, the more you know, the more you can grow. It’s important to recognize that some of your money should be used to allow you to learn more about how it works. This can be through books, podcasts, classes or other forms. When you understand finance, you can use it to your advantage to make the best decisions for yourself.
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