If you look at the statistics, many Americans are horrible when it comes to finances. In this article, I’m going to show you how to properly manage your finances so you don’t end up like the masses.
1. Stay out of debt
As they like to say “The borrower is a slave to the lender”. This is definitely true when it comes to borrowing money. When you take out a loan for a car or for a house, that isn’t your item. It’s the bank’s item until you fully pay off that loan and have full equity in that asset. If you can’t keep up with your payments, the car could be repossessed and the house may be foreclosed on. This is why it’s a very smart decision to always pay cash for these things and never to go into debt. In the end, only go into debt if it something that can provide immediate cash flow like a small business or a rental property.
2. Watch the credit
This ties in with the first step. Credit card debt can be dangerous if you’re not careful. Only make payments on the credit card that you know for a fact you’ll be able to pay at the end of the month. If you can’t you should not be taking out a credit card at all.
3. Increase Income
Income is the most powerful wealth building tool. Focus every day on increasing income whether that be from a side hustle, freelancing, or getting an extra job. In the end, every extra dollar counts.