Without a doubt the top thing that holds people back from truly feeling happy is financial security. I want to give everyone a few steps you can take to make sure you can do everything within your power to achieve financial security.
Without a doubt, the #1 thing is to set financial goals. Where do you see yourself in a year? What about ten years? Do you see yourself in the same job? Same position? Setting financial goals can be as easy as determining how much money you can set aside and save right now. Small goals compound into larger ones, it’s really that easy.
The second thing to do is track how much you spend, and compare it to how much you save. It goes without saying but if you spend more than you save, something needs to change. There are various ways to record this data, whether it be a notebook or a computer program, like Quicken. I personally use a tool called Mint.
It doesn’t matter how fancy you get with it, but do it! Along the same lines, you need to develop a budget. 55% of millionaires keep a budget. It’s not that they need a budget, but rather it’s what helped them become millionaires!
Next is a tough one for most everyone. Get out of debt! There are various types of debt, some bad, some really bad. Ranking among the top is credit card debt. Carries high interest rates, and making it seamlessly impossible to get rid of, credit card debt alone can ruin a persons financial future. Other debt, such as student loans, or even a mortgage, while not great to have, is more commonly accepted.
Which brings my to by next point. Invest what money you can save! The days are long gone of actually making money with a savings account. You have to actively manage your savings and invest wisely. The stock market is nothing new. People have been investing in publicly traded companies for close to 100 years now. It has made people millions, and has easily made people broke. Here’s some tips.
Do you research! We live in a digital age where information is available at the click of a mouse. Don’t guess which stocks to buy, research the best of the best. The cream of the crop. There are literally dozens of websites where you can go to for reputable and accurate advice and data on purchasing stocks. I personally love www.marketwatch.com. They have a very easy website to navigate and give a very nice snapshot of each stock.
They provide analyst ratings of each stock, as well as target price of the stock. Get involved and learn what each of these values means to a stock. I promise it will only help!
Another site I use is www.stocksrank.com. They provide amazing stock rankings and ratings of the best stocks to buy. It is updated on a daily basis and give a great “starting point” as to what stocks to purchase. I will typically use their stock picks and recommendations in the beginning stages of determining what stocks to buy.
It allows me to easily narrow down from thousands of stocks to just a few. From there I will use Market Watch to see the rest of the picture. But do your own research and make your own method. The bottom line is do you research!
With goals, a budget, savings, and ultimately investments, you are on a great path to taking control of your finances. Once that’s in control, it’s just one less thing to worry about!
Leave a comment and let me know what you think and how your savings/investments are working out for you!