Just because the idea of financial freedom is new and exciting, it doesn’t mean that all the steps involved are just as interesting. What did you expect, that you could skip over the being-generally-sensible part and start picking money off trees instead?
No—you’re going to need to learn (and practice) sound financial management. Hopefully, you already have an idea of what that looks like. But if you’re starting from scratch or you need a quick refresher, here goes.
You can only save money if you’re bringing in less than you spend, and there’s only one way to be sure of that: creating and sticking to a budget. When you look at the impact of your regular expenditures, you might be surprised at what you see—that $3 cup of coffee ends up costing $60+ a month.Fortunately, in the modern age, budgeting doesn’t have to be time-consuming. To make the process more convenient, consider a personal budgeting app and look for holochain news. See? No excuses.Once you have your incomings and outgoings in check, it’s time to start thinking about debt. Now, paying off debt isn’t always the right decision (it depends on the interest rate), but there’s one kind you should definitely tackle: credit card debt. Those rates should be illegal, so make it a priority to clear anything you’ve built up so far, and switch on your automatic payments in the future.The next thing to think about is insurance. It might mean more upfront expense, but it pays (literally) to have a good policy. Even if you’re not prepared to fork out on life or income protection insurance, consider healthcare at the very least. Look after your money, but look after yourself too.
Finally, practice financial savviness where possible. Look for the bank accounts with the best yields, shop around for your insurance policies, negotiate the price of your monthly bills, consider a card that offers cashback—you get the idea.It’s up to you how far you take things, but make sure you lay a good foundation before you start thinking about investing.
Once you’re sure that you’re no longer no longer being too casual with your finances, you can move from protecting what you have to growing it. This is where things get way more interesting—and where the link to financial freedom becomes apparent.Now you’ve saved some money, don’t just stash it away in your savings account and let inflation eat away at its value. Invest! Many people wrongly assume that investing is super risky and not for “ordinary folk,” but this simply isn’t true. If you invest in a good index fund, mutual fund, or ETF (like the S&P 500) and you leave your money in there for at least five years, failing to get a return would be unprecedented.But make sure that you choose a tax-incentive vehicle. In the US, putting your money in a Roth IRA rather than a standard investment account ensures you won’t be taxed on your withdrawals when retirement comes around, and most other countries have an equivalent option. If you’re interested in diversifying your investments further, consider alternative assets like commodities or cryptocurrencies and borrow against bitcoin. These are much riskier than funds though, so only allocate a small percentage of your total net worth (or, as some would say, an amount you’re happy to lose).Plus, if you buy qtum coin, BNB, BTC, or ETH, you can make your money work for you even further. Lend crypto to borrowers on MyConstant crypto lending platform and earn up to 7% APY. Whatever investing strategy you choose, you can look forward to something called compound interest investments. This is where the magic happens. Your initial investment earns interest, then that interest earns more interest, and so on. So, if you invest $1000 a month for the next 25 years and the annual interest rate is 10% (the average for the S&P 500), you can expect almost $1.3 million by the end. Do you still think financial independence is impossible?
By now you should realize that financial freedom is within your grasp. But you can’t expect to open your bank account one day and realize that your savings have finally hit your goal—you need to be proactive in your approach.
Whatever point you’re at in your journey, we have something for you at MyConstant. If you’re just looking for somewhere safe to store your savings and earn a little interest, you can deposit your US dollars with us and earn 4% APY. Plus, it’s compounded and paid every second, so you’ll get the satisfaction of seeing your money grow continuously. Or, if you’re prepared to take on some risk, you can learn more how to lend money online with us to borrowers and earn up to 7% APR. This means you’ll be lending directly to people and businesses (who have put down collateral to make your investment safer).When you invest with us, you’ll also get:
Why not create your free account today and find out for yourself if we’re right for you?