It's important to build a financial foundation for your future. When you do this, you set yourself up to be financially protected no matter what happens in life. There is a sense of stability and freedom that comes along with this type of lifestyle. In order to make sure you build a strong financial foundation for your future, it's important to implement four main keys.
1. Income
You can't build a financial foundation without a reoccuring source of income. Most people get jobs in order to gain income. Whether you work a 9-5 job or you start your own business, it is important to have a stable source of income each month. In fact, if you really want to do your best to make sure you build a strong foundation, have a few sources of income each month. Your regular job might be one source. A part-time job can serve as another source. Find a way to create a passive stream of income. As long as you have a few strong streams of income each month, you're doing a great job with the first step of building a financial future.
2. Budgeting …show more content…
Once you have regular income streams, it's important to budget and allott the income for specific things. A percentage (no more than 1/3) of your income can go to living expenses (rent/mortgage, utilities and insurance). It is good to put at least ten percent into savings. Create line items on the budget for things like food, gas, entertainment, car repairs and other things that come up. You need to create a budget with every paycheck. By the time the budget is created, every penny should have an assignment. If you don't have a proper assignment for your money, it's easy to blow it on random splurges. Budget your money and tell it where to
1. Income
You can't build a financial foundation without a reoccuring source of income. Most people get jobs in order to gain income. Whether you work a 9-5 job or you start your own business, it is important to have a stable source of income each month. In fact, if you really want to do your best to make sure you build a strong foundation, have a few sources of income each month. Your regular job might be one source. A part-time job can serve as another source. Find a way to create a passive stream of income. As long as you have a few strong streams of income each month, you're doing a great job with the first step of building a financial future.
2. Budgeting …show more content…
Once you have regular income streams, it's important to budget and allott the income for specific things. A percentage (no more than 1/3) of your income can go to living expenses (rent/mortgage, utilities and insurance). It is good to put at least ten percent into savings. Create line items on the budget for things like food, gas, entertainment, car repairs and other things that come up. You need to create a budget with every paycheck. By the time the budget is created, every penny should have an assignment. If you don't have a proper assignment for your money, it's easy to blow it on random splurges. Budget your money and tell it where to