3 Simple, Yet Effective Tips To Get Your Finances To The Next Level

A quick way to solidify your money situation

When we’re trying to get our finances to the next level, we often do not see the wood for the trees.

We want to get the best possible outcome and seek to invest our money as intelligently as possible. Yet, most of us are busy and cannot afford to dive deeper into the topic.

Over the years, I found that a few simple principles were the most effective ones for me in saving, paying back debt quicker, and not losing lots of money along the way.

Broke people neglect the math of cash

Most people don’t treat money with the respect and diligence it needs.

They make expenses and investments without knowing if their cash flow and other costs allow them to do so. Then they wonder why they end up having a shortage of money or need to get into debt to survive the next month.

Warren Buffet had a simple rule for budgeting, and he’s one of the richest men on earth:

“If you can’t afford it, don’t buy it!”

Budgeting and overlooking your expenses will give you a critical overview of your finances.

It’s vital to do the math on your expenses:

• How much do I earn?
• And how much am I spending?

Yet it’s so simple; most people tend to think it’s beneath them to do the math, which is why the majority of people get into debt or end up broke once in their life.

It’s not a coincidence that budgeting is a habit of the wealthy.

You won’t find a billionaire on this planet who hasn’t at least done this at the beginning of their career or is not aware of his cash flow.

Sure, other people are probably overlooking it for them now, but the process is the same.

The Takeaways:

• Track your expenses with a budget book or a housekeeping app.

If you want to get ahead fast, it’s vital to know how much money comes in and how much leaves your pocket. Most people refuse to do that, yet most people aren’t rich.

• Never spend more money than you earn.

Make that your principle. Even if it’s for a very promising investment, it doesn’t justify the risk of getting illiquid.

• If you take out consumer credit, you’re taking a step backward instead of forward on your road to wealth and abundance.

Increasing income will enable you to enjoy life

The time I lost my focus on earning more money than I spent was a dark time in my life.

I had just moved out of my parent’s basement, was young and naive, and didn’t want to miss out on the cool things my friends were doing.

But this behavior got me into debt.

If I had not spent more than I earned, it wouldn’t have become so critical. Soon, every month, my bank account numbers were red, although I worked hard at my full-time job. Not too great for one’s self-esteem.

When I finally learned my lesson and took responsibility for increasing my income instead of tensely saving every cent possible, my life changed from feeling stuck to feeling pro-active.

Once of a sudden, I felt powerful again after all these years of over-consumption and committed myself ever since never to spend even one more dollar than I would earn.

How I did it and how you can too:

Additionally to studying at university and earning a scholarship, I started a second job delivering food with my bike, sold stuff I no longer needed at home, and started this Medium blog here.

While I shifted my focus on earning more, I quit unnecessary expenses, like memberships I no longer used.

Expenses down, income up.

All of these things didn’t make me rich instantly, but shortly after, I received my first paychecks, and it meant the world to me.

Can you imagine how I felt when I received my first 50$ from blogging online?

I felt like Hercules when I received a 1000$ paycheck from that second job. My confidence soared.

And the most important part: I was liquid again.

Liquidity is an essential element when paying back debt.

Finally, I was able to pay my rent without fear. It enabled me to pay for all my necessary expenses and lay money aside for future investments while paying off my debt.

When my income increased, I could again afford things, like going on a vacation, traveling, and all the beautiful things I was missing out on when I was broke.

Be aware of the “experts”

There are countless financial advisers and content out there telling you different things about money.

• One says: Follow the Law of Attraction, and money will follow you.
• The next is saying: Stocks, stocks, and again stocks, are the only tool to become wealthy.
• Another one has distribution and sales experience and preaches that no one can become financially independent without joining a network marketing company.

I don’t want to say they are not experts, and you shouldn’t listen to them. But there are many black sheep in the herd, and their expertise is overrated.

People need to interpret what they hear and if it benefits them in their particular life situation. What’s the point in learning about how to invest in stocks, if you don’t have the money to invest in stocks? — It’s ridiculous.

The Takeaways:

You need to do the best things for your specific situation, and that’ll bring you ahead.

Good financial advice has become rare, and scam programs are like weeds. If one disappears, the next is already on its way.

Many sell courses on how to get financially abundant, and then these contain the most straightforward tips you can find online with one mouse click. Like the ones, you’re about to read.

Learn from people that know the rules.

When you search for tips on making it financially, make sure that they’re coming from someone who knows the game's rules.

You wouldn’t get personal training hours with an obese person, would you?

First of all, check if that person is transparent about what they claim to be an expert in and search their profile on social media.

• Are they showing their results?
• Does it seem like they leased their sports car to pretend to be rich when they aren’t?
• Is their free content valuable?
• Can I profit from them if I pay them to coach me or buy one of their digital products?

It would be best if you learned from people who are in the game, earn a lot, and understand their playground. Only if that’s the case can they add value to your life and teach you to do the same.

Bottom Line

When we’re getting along well, we tend to neglect our finances because everything’s fine in our lives.

But once we lack money or take it for too granted to care about it, the tide quickly turns.

That’s why it’s essential never to let that happen. You can’t neglect money and need to build a running system for yourself with certain principles, so neither you lose nor waste it.