My Financial Philosophy
When it comes to finances I have a pretty simple philosophy in the grand scheme of things which is, make more money while spending less money. It’s straight forward and to the point and is more obtainable than many people think. Less expenses mean’s more money you are able to allocate towards investing in yourself, retirement, savings, and even guilty pleasures like that new car you don’t need! It frees you from having to live pay check to pay check and it even enables you to invest in assets that can generate you more income.
The first step is to make more money. While this may seem daunting it is very doable once you analyze your situation. If your job offers training that can help further your career, take it. Once a better paying position comes open you will be in position to get it and the raise attached to it. Some jobs offer overtime and incentive based raises. Take advantage of these opportunities as often as they become available. Some jobs don’t provide raises, opportunities for promotion, incentives, or overtime. In those instances you need to find a part time job or hustle. I work full time but I also blog and drive for Door Dash to increase my overall income. The extra money has enabled me to accomplish things one stream of income alone normally wouldn’t.
Once you have started making more money it’s now time to cut back on expenses. If you have loans pay them off expeditiously. If you eat out multiple times during the week cut back to once. The more money you are able to keep is going to help tremendously in the long run. If you have several large debts and don’t know how to go about getting rid of them I suggest using Dave Ramsey’s snowball method. When taking this approach you make the minimum payments on all your debts except for the smallest one. The smallest debt is allocated extra payments until it is paid off. The money that is freed up for that debt is then used to make extra payments on the smallest remaining debt. This process is repeated until all of your targeted debts are paid off.
After you are have paid off your debts you can allocate more money into assets that will further benefit you. My financial philosophy isn’t complex but finances shouldn’t be complicated. Find ways to maximize your money making potential and cut back on unnecessary spending and unwanted debt payments. Following these simple principles will get you further than you think.
