The key to financial freedom is making the most out of what you have now. Some people think that they will be more financially independent when their businesses start making more money or get a promotion at work. But the truth is that if you cannot manage the $1,000 in your pocket, then you surely cannot manage the lump sums won at the best Irish casino websites. And they are quite big! So, as you prepare to manage millions of dollars, let’s consider how to get the most out of what you have now. Ready?
Seek Financial Wisdom
When you come across people like Robert Kiyosaki talking about the rat race, passive income, and draining assets, you get to realize just how easy it is to make do with so little. It’s easy to earn millions and still go bankrupt in a heartbeat – many people faced this during the pandemic. And yet, someone earning $1,000 a month could become a millionaire in the same economy. Why is that? Well, it boils down to financial wisdom. Read more books on how to manage your money.
Track Your Spending
Have you heard of spending trackers? These gems work wonders in helping you understand where your money goes. Are you curious about how they work? It’s easy. Come up with the key categories where you spend your money: rent, utilities, eating out, fuel, hiring help, etc. Then each time you spend on these categories, note the amount down. At the end of the first month, you should know where your money goes. For example, you could realize that you spend $300 a month eating out. Can you afford to keep doing this? Is there another category that can do with more money? You may even realize that you have enough money to invest in your dream business – but you have been spending it all on mundane things.
Cut Back Where You Can
When reviewing your monthly budget, it’s easy to feel like you should just cut back on spending by 50% so you can save and invest the rest of the cash. Good idea – but it’s not always feasible. So, use a spending tracker as we suggested above. Then ask yourself which areas could do with less money. For example, you can stop paying for a membership to a club if you barely ever enjoy its amenities. Or cut back on eating out. Find something you can go without but don’t be too extreme. Be realistic about your needs.
Focus on Your Needs
Do you know how people end up using more than they intend per month? Well, they cannot differentiate their needs from their wants. Your needs are non-negotiable – you need a place to sleep, clothes to wear, and food to eat. That’s at the basic level. You also need equipment to run your business, fuel to get your car from point A to point B, etc. But what are wants? These are expenses you can afford to go without – like eating out, new shoes, a vacation, etc. You may want them, but you don’t need them. So, you can segment your budget to read 50% needs, 20% wants, and 30% savings and investments. Your needs won’t take a hit, and you can avoid spending the extra cash on fleeting desires.
One last thing: have a sinking fund. This money caters to periodical needs like car insurance, mortgage payments, etc. That way, you can avoid going over budget when it’s time to pay up. You can stick to the schedule you have created (e.g., 50% needs, 20% wants, and 30% savings and investments) throughout the year. Guess what? The budget tips above also make it easier for you to carve out enough money for casino games. How great is that!