When we think about personal betterment, and striving to become the best version of ourselves that we can possibly be, it would be quite safe to say that money isn’t a priority for most. And while it’s certainly true that money isn’t the sole measurement of success, and won’t always give you personal satisfaction, depending on what your goals are, it can be an integral part of building up a successful business strategy, or just giving you general peace of mind in your day-to-day life.
In many cases, particularly with regard to entrepreneurs and small business owners, having a secure financial base can give you the freedom to innovate and build, with confidence and without the worry of struggling to provide for your existing commitments in the process.
Do you want to build up your finances, perhaps to bolster and construct an investment portfolio looking forward, or maybe even to secure yourself in preparation for eventual retirement? Whatever the case may be, if you’re in need of some inspiration, take a look at this short guide, with a few different tips (from small to big) on how to build a better financial self in 2020.
Address your current financial situation
Before you go out and start making drastic changes to your spending that you perhaps don’t need to, or investing more money than you can afford into an ill-advised long-term strategy, you should start by going back to basics, and addressing the current state of your finances. Round up and make a note of all of your outgoing payments each week, from your gas and electric bills all the way to your recurring Netflix subscription. Make adjustments where possible, such as switching suppliers and stripping back on certain plans that you aren’t making the most of, and cut the cord altogether on things that you don’t use, or have forgotten about completely (something that isn’t uncommon, and that many companies actually rely upon when it comes to recurring monthly payments).
After you’ve done this, not only should you have a little bit of extra money to play around with, perhaps saving or investing it for the future, but you should also have a better understanding and control of your finances. This will allow you to make better decisions going forward on what might take you to the next level with your money.
Save and Invest your money
Aside from giving you a solid foundation in which you can go out and live your life on, saving can also give you the foot in the door that you might need to get started in investment, putting that money back to work on your behalf and making more in the process. Whether this is something that you pursue actively, looking closely at volatile markets such as stocks and shares etc, or something that you put a little bit of extra cash into as a passive strategy while working, there are a range of different forms that investment can take, but with lowering rates on savings accounts at the moment, it’s certainly something worth considering if you want to be proactive with your money.
Tip – Want to learn about investment markets, how they work, and which areas/investment types are the best to look into at the moment? Why not take advantage of the myriad of online resources available to you for free, or listen to some different investment podcasts? RWinvest, alongside their website’s advice and guides, offer a series of up-to-date podcasts on the property investment market, giving insight and tips on what to look out for when investing in a buy-to-let apartment or home.
Plotting out a path for your business
As a closing piece of advice if you’re someone that wants to secure their finances in order to be able to sustain a business, then you should plot out a long-term plan and goal, with incremental steps on how you’re going to get there. This will help you to make sense of your long-term vision being achievable, and it will also give you an inclination as to how much it will cost you. Remember, when making money from your business, it’s important to remember not to get carried away, as you will still need to inject some of the profit into continued success.