You don’t necessarily want money to be your master but it is hard to argue with the fact that it is a commodity that shapes and influences some of your choices in life, both today and in the future.
The key to taking better control of your financial destiny and plotting a more prosperous path towards a better is to understand some the factors that can make such a fundamental difference.
Here is a look at how your earning potential is a major factor, why it pays to always be savvy with all your purchasing decisions, plus some pointers on the right ways to save for the future.
Concentrate on your career
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One of your biggest financial priorities should be to focus on building your annual income and plotting a career path that allows you to achieve a steady rise in the amount of money you manage to earn each year.
Enhancing your future earnings by concentrating on how you can further your career and improve your earning potential is one of the major factors that helps to determine what sort of financial future you are going to enjoy.
It makes perfect sense that if you can enjoy growth in your annual income this gives you far greater options in terms of generating and building wealth by way of increased savings potential and the chance to invest in assets like property.
Be savvy with your cash
Another important pointer towards a brighter financial tomorrow is how you handle money and whether you are savvy with your shopping habits or could be classed as impulsive.
A wise consumer will take the time to think about any major purchases and review their options before committing their cash. It can also make a huge difference to your bank balance if you do your everyday shopping with more restraint and avoid impulsive purchases.
When you are thinking about major purchases such as buying a car, decide if you are better, in the long run, to buy a model like the Dodge Dart, for example, rather than buying an older model that might turn out be a false economy if you get saddled with some expensive repair and maintenance bills.
Set some savings targets
It is really important to get into a disciplined savings routine as that will seriously shape how well positioned your finances are in the future, including how comfortable your retirement will be.
As a general rule, you should be putting at least 10% of your income away each month in savings and investments, but more if you can afford it.
It is always a good idea to have an emergency fund with at least $500 set aside so that you can cope with an unexpected repair bill without having to resort to expensive loans or borrowing out of your long-term savings.
It helps to have some goals to aim for with the money you are putting away each month. Work out how much you need for things like a college fund for the kids and retirement plans, so that you can work on putting aside enough money to meet those financial targets when the time comes.
Try to cut out financial mistakes and learn from them when things go awry, as this will make you savvier with your money and help you to secure a stronger future for you and your family.
Raj Kumar is a qualified business/finance writer expert in investment, debt, credit cards, Passive income, financial updates. He advises in his blog finance clap.
