4.75%
1 Year Treasury Rate is at 4.75%, compared to 4.72% the previous market day and 0.27% last year.
This is higher than the long term average of 2.86%. Stats
New filings were in line with consensus expectations, rising slightly to 211,000 in the week
ended December 3. This is up from the prior week’s revised total of …
Spending Less to Invest More
The process of generating wealth, which can be achieved with even minimal income,
requires commitment to basic measures. The measures that can lead to the generation
of wealth, if properly implemented are highlighted below.
It seems pretty obvious that budgeting should be one of the top measures implemented
to spend less and invest more.
As cliche’ as budgeting may seem, it still serves as an established means of spending
less of one’s income and investing more of the income.
For budgeting to be effective, a budget has to be functional and include all kinds
of expenditure, from the emergency expenses to the regular expenses.
Penalties for exceeding the budget should also be stated and implemented
appropriately. An effective budget should be a proper reflection of one’s financial
habits and should aim towards cutting unnecessary expenses.
Allocating funds to separate accounts
Having separate accounts, especially savings account, where different categories
of funds can be kept is another measure that can be implemented to ensure the most
minimal spending.
The allocation of funds to different accounts works better when measures for
ensuring that the allocated funds for a specific purpose are not used for other
purposes.
For example, an account where regular savings are kept should not have a debit
card to ensure against undue withdrawals.
Restricting luxury expenditure
It has been well established that living below one’s means is a clear-cut method
of building wealth.
In achieving less expenditure and more investments, it is thus important to implement
practical methods of restricting undue spending.
One of such methods that can be implemented is the taxing of such undue expenses.
Taxing these expenses increases the cost of undue expenses thus restricting one
from engaging in them.
For example, for every family vacation, for example, a certain amount must be
put into the savings account, to balance up that expense.
Thus, whenever one thinks of a family vacation, they would consider the cost of the
vacation as well as the saving equivalent and plan properly towards such expenditure.
Investing
As much as it is important to save, it is more important to invest savings. A saying
goes thus, “No one ever get wealthy from leaving money in a savings account”.
The mindset of continuous and long-term investments is a necessary mindset for
developing wealth. While investing, it is important to implement certain
important measures such as balancing one’s saving portfolio with long and
short-term investments.
It is also important to focus on low-risk investment options and seek appropriate
financial advice as necessary.
Reducing debt
A common feature of the different types of loans is the interest they attract. As
a result, reducing debt is an effective measure for ensuring less expenses, saving
more and investing more.
Debt reduction measures should be applied across all forms of debts, from credit
card debts to college loan debts.
A certain proportion of one’s regular income should thus be set aside for servicing
debt and ensuring a healthy credit profile.
Ultimately, financial freedom can be attained when one adopts measures of appropriating
income to achieve the most minimal spending and best saving.PLEASURE READING SOME KINDLE FREE BOOKS YEAR 2023
