Many people believe they cannot save any of their income because they have more expenses than income, but the way to changing that belief is determined by your mindset. If you believe that you will put money into your savings account after you pay your bills and expenses, you will usually come up short and have nothing left at the end of paying your bills and expenses. You will go from paycheck to paycheck trying to get ahead but stuck in the same position until your next paycheck arrives.
If you are stuck in a paycheck to paycheck cycle, there are three ways out:
(1) Decrease your expenses;
(2) Increase your income;
(3) Increase your savings.
Decrease Your Expenses:
You can decrease your expenses by tracking your expenditures to determine where your money is going. Then you can eliminate any unnecessary expenditures or find ways to decrease that expenditure. If you want to decrease your expenses, you must take control of your money and manage your finances.
Increase Your Income:
You can increase your income by getting more hours on your current job or getting an additional job or establishing another stream of income.
Increase Your Savings:
Increase the amount of money you put into your savings account. You cannot withdraw money from an empty savings account. But, if you save a portion of your income or earnings, you can withdraw money to help you cover unexpected expenses. Instead of saying you don’t have any money to put into savings, start looking for ways to find money to save.
It is important to set aside a portion of your earnings or income, not only for emergencies, but also for major expenses like cars, appliances, home purchase, and retirement.
Savings is key to financial freedom. If you don’t develop a mindset to save a portion of the money you earn, you will develop a mindset to spend all you earn. If you have money to resolve an emergency situation or to cover a major expense, you will not be stuck in a cycle of debt but rather you will become debt-free and experience financial freedom.
One of the most important keys to financial freedom is believing that you can actually live free from financial worries and stress. If you don’t believe you will ever be able to live a life where you are free to do the things that you want to do, when you want to do them without worrying about the money, it will never happen.
Whatever you believe will manifest itself. When you believe, you have to also put massive radical action towards accomplishing that goal. The best indicator that you actually decided to believe that your life can change in this way is that you are taking positive steps to support that belief. There is a process that will get you to a place that you never thought possible. Tap into the keys of financial freedom identified above and you will be glad you did.
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