2. Don't Rely on Just One Stream of Income - Robert Kiyosaki
While this piece of advice may not be new to you, it still rings true.
According to Robert Kiyosaki, author of best-selling book series Rich Dad, Poor Dad, with over 32 million copies sold worldwide, you should not “rely on your job for income, but instead focus on creating multiple streams of income through investments and business ventures”.
His belief is that improving financial health does not necessarily mean cutting back on your spending and actively saving.
Alternatively, trying out collaborative economic platforms, such as Depop, Craigslist, Etsy, Gumtree, eBay, where you can sell clothes, accessories, home appliances - and really anything - you no longer use is a great way to earn some extra money. Not only that, but it can also help promote greener and more sustainable consumption habits.
Investing is also a great way to generate an additional income, such as buying shares in a company you believe has potential to grow, contributing to investment funds and bonds. However, if you’re not comfortable investing on your own, it might be a good idea to consider hiring a finance professional who can help you along.
Nevertheless, before going ahead and doing so, it’s vital to make sure that you are well informed. The right choices will depend on different factors, like your investor profile, the risk you’re willing to take, as well as the microeconomic expectations.
3. Get Out of Your Debt - Suze Orman
#1 New York Times Bestselling Author on personal finance, with over 25 million copies in circulation, Suze Orman, supports that, “Debt is bondage. You will never, ever, ever have financial freedom if you have debt”.
For that reason, Orman, who has appeared on The Oprah Winfrey Show and The Today Show, as well as a column in O Magazine, believes that “you are asking for trouble if you carry credit card debt right now”, explaining that the “interest rates you are charged are rising” - a statement that couldn’t be more true than it is today.
In the simplest of terms, if you have a lot of debt, it means that you don’t have enough cash flow that will allow you to make savings. Orman’s advice is to try and pay your debt as soon as you can. This will benefit you in the future, preparing you for an adverse situation, such as a decrease in your income, an unforeseen expense or an increase in your interest.
Start off by making a list of things you’re in debt for and their respective amount, to keep you accountable and on track. Then begin to plan your debt payments based on your financial capacity. It’s important to remember however that in some instances debt is necessary and unavoidable. For that, here are some tools and platforms you could make use of to help you navigate and climb out of your debt.
Additionally, before taking out a future loan, you should first ask yourself whether the product or service you want to buy is absolutely necessary or if you could make the purchase at a later time.