The first steps to financial independence
Every experienced man will remember his first steps on the path to financial independence. Now they seem crap compared to the difficulties I had to face after. However, in those moments when you just graduated from University, got a job as a trainee in some small-town firm and started earning their first money, they seemed to be Herculean. It was difficult, but not because you are surrounded by hardship and instability, and because you used to live at the expense of others. Parents have paid the fees, your clothes and your food. On top of that gave a lot of money for «walk». Some, of course, worked from childhood, then about financial independence they know better than ours. However, that doesn’t hurt them to read our tips that will help to overcome this strict line between carefree students and real ability.
Your initial level is always inextricably linked with the meager salary. Already instituted. Even a diploma doesn’t guarantee you a warm place. We love financial advice, and therefore decided to Supplement them with new material.
So, our goal is to quit borrowing money for household needs friends (to pay) and stop to ask their grandmothers, mothers and grandparents. Not an easy task, but we can help.
1. Analyze income and expenses
This is what we often said, but will not be superfluous to repeat: start writing finally, the income and expenses! Let’s have to control your spending and not do stupid things. And control is impossible without an analysis, right? For example, every day you buy a coffee in a cafe near the office and you feel like a Cup of coffee costs nothing at all. But if you had recorded the cost of this Cup of coffee per month, you probably would prefer to buy bean coffee in the shop, understanding that so you will save a lot of money.
2. Rental housing
It is unlikely you will be able to get your own apartment at the start, so you should pay careful attention to rental housing, because it eats up a significant portion of their income. In General terms, you need to calculate your total income and take the amount received is not more than 30%. The money you can spend on rent or even a mortgage. But not anymore! Stay in this price range, otherwise a quiet life you can not see.
3. Think about the roommate
Everyone wants to have their own den that is cozy and comfortable, and its 100%. But the allocated amount (30% of income) may not be enough even to rent some cheap Studio. There must be a way: just find a roommate or cohabitant. This decision will save your money, and will allow you to choose a better house. It is clear that living with a stranger – solution nonideal. But it is certainly better than nothing. Honestly, you can live and in order to defer part of the amount for the purchase of their own homes.
4. Control your diet
Food is always a necessity and one of the main items of expenditure. But you can always save it. First and foremost, forget the restaurants and cafes. You might think that to buy Breakfast in the cafe is cheaper and better than to cook, but this is a false judgment. The fact that it is cheaper never will be. You’ll pay extra for coffee, dessert, and the portions are small compared to what you can do by yourself. The account will eventually be more than you think. So, if you want to break free from the shackles of debt, screw the restaurants, they are not your friends. We also recommend that you always, always, always bring lunch to work. Remember, an empty stomach the wallet, not a friend. And finally, on food: try to make a shopping list in advance, at least a week. And, of course, beware of impulsive purchases at the grocery.
5. Treat what you have
When you get your first paycheck, you can carry the roof. You begin to spend it on what you missed before: you buy all sorts of new technological gizmos, spend on expensive alcohol, cigars, pay for a gym membership and on the fifth day stay with leaky pockets. Moreover, all this must be accounted for, as even you should understand that you really need and what is a fad, not justified by common sense.
For example, you don’t need a car in the city of eternal traffic jams, especially if it’s a car loan, for which you pay several years. In the extreme case, buy a used car, or fix the old one. The same applies to phones and tablets. If you need a quality phone at work (where you can install viber, telegram and other joys of modern communication), then buy something reliable, based on reviews and my own experience. But don’t spend money on the next-generation iPhone, when the old «brick» works fine, and extra features you don’t need. This needs to be done to ensure that in the future you could make a more important purchase, friend.
6. Attend free events
The rest may be different. You can spend 5000 on a luxury wooden concert of your favorite singer, you can watch this concert absolutely free, for example, on any open area in the city Day. I am, of course, exaggerating. But the point is clear, right? Look for free entertainment that you will be interesting. You can visit exhibitions, art galleries (there is a penny), lectures or poker tournaments. All this is available to everyone, and to participate do not need to be a tycoon.
Savings, at first glance, it might seem a living hell, which deprives you of the joy of life. But in fact, it is necessary to change only a few habits to have the opportunity to create a financial cushion that you can be sure that’ll come in handy. Pass through it all. The money saved you could end up investing in something that will help to overcome these financial difficulties. Sooner or later you’ll remember this time, as a matter of course.