Financial success is something everyone wants, but few know how to achieve it. As vital as long-term financial success is, it is not as difficult to secure as one may think. The following are five tips that are critical to creating a cornerstone of financial success.
Spend Less Than Is Earned
Overspending is the single worst financial mistake a person can make. Long-term financial success relies on the ability to avoid or control debt and save money, and those can only be accomplished when one spends less than they earn. Spending less than one earns also ensures they avoid entering a paycheck-to-paycheck lifestyle.
Create A Budget And Follow It
A budget allows one to see where their money is going and better control the value they get in exchange for their spending. While making a budget is a helpful exercise in itself, the full value of a budget comes from following its financial directives to control spending better. Using a budget as a guide to monthly financial decisions can take the pressure off a consumer and allow them to focus more energy on earning money, rather than how to spend it.
Having funds available to help out during an emergency can keep an individual from going into debt at the worst possible time. In addition to saving an emergency fund worth three to six months of expenses, if one wants long-term financial success, they should also save for retirement. When one begins retirement saving at an early age, they allow more time for their savings to grow.
Avoid Carrying Balances On Credit Cards
Credit cards generally come with hefty interest fees that significantly increase overall spending. While using credit cards and paying them off in full each month can be a strategic financial move, especially when the credit card offers rewards, using credit cards and carrying balances over from month to month increases the total amount spent.
Insurance allows an individual to protect their assets, income, and liabilities. These are essential moves in generating long-term financial success. Whether it is disability coverage, auto insurance, home insurance, or life insurance, a policy designed to protect the insured can secure their finances for years to come.
About The Author
Yuri Vanetik is an Entrepreneur, Private Investor, Coalition Builder, and Philanthropist in Orange County, California. He is the Managing Partner of Vanetik International, LLC, a management consulting firm that offers advisory services and strategic planning to businesses and industries. He is also the Managing Partner of Dominion Asset Management, a technology-driven opportunity real estate fund that invests in undervalued real estate throughout the United States. Yuri Vanetik brings over 20 years of professional experience in a variety of roles and has been featured in notable publications, including the Wall Street Journal, California Business Journal, Forbes, and Bloomberg Law.