Having a huge monthly income or profit is difficult to achieve for many people, but there are steps you can do to have six to seven figures per month. Despite the economic downturn that has taken its toll these days, there are opportunities you can tap to achieve such goal. These strategies will fire up your road to financial freedom. By executing them efficiently, you can have more time to enjoy your money with your loved ones soon.
Make a strong commitment
Commitment means an endless desire to become financially free. You have to establish a strong commitment that will never wane despite the challenges in both economic and personal life. Earning less than what you need is not a problem. Your strong commitment will trigger you to find ways to earn more money.
Today, there are different micro jobs you can find online. Don’t rely on a single source of income – your 9-5 job. Try to find more part-time jobs, or gigs, since the Internet has provided people more ways to earn.
Your commitment is the burning flame deep inside you. Don’t let yourself get stuck. There are choices like automating your finances which self-made millionaire David Bach has proposed. Automating your finances suggests that you need to invest your hard-earned money to automatic investment accounts, savings accounts, as well as creditors. This way, you’re gradually building your wealth in an effortless manner.
Divide your income into three brackets
The three brackets consist of fund for regular expenses, safety money, and fund for long-term wealth. Set an autopilot system where you’re going to put your money into the three different brackets. Based on my personal practice, I put in a minimum of $3000 going to my safety money account.
Your fund for regular expenses should be clear-cut. You should not go beyond your expenditures. You should be able to determine exactly your needs from wants. You have to be frugal and be practical with your expenses. For example, instead of spending a $5 cost of Starbucks frappe, try to cut such cost and put the amount in safety money savings. A $5 saving on a regular basis can have a huge impact to your net worth over time. In one year, you can save as much as $1,825. For a period of 10 years, that will be a huge pocket savings of $18,250. Imagine how far $5 of Starbucks coffee can go.
Have cheaper investment funds with low fees
Investment in mutual funds, for instance, is a common advice you can get from financial mentors. It’s a great advice, but you have to be clever when applying this strategy.
By investing in mutual funds, your money is working for you. You earn money, and you can invest it again to grow more periodically. You should have a positive mindset and attitude. Once this attitude towards money is honed, you’re a step closer to financial stability.
Investing in the stock market is also one of the viable choices. Despite market volatility, the stock market is still a good option. You only have to choose the right stocks with cheaper purchasing cost. Timing is the key factor to become successful in the stock market investment.
Pay off debts
Debts can worsen your financial status if they are always ignored. There are doable strategies on how you’re going to pay off your debts. In my recently published blogs, The Most Effective and Proven Method to Pay off Debt Fast and Paying Debts through Snowball Method, I explained clearly how to pay off debts using the two options.
On the one hand, you can clear your debts through the Ladder Method. The term “fast” is the main keyword in this method, which is done through a simple mathematical formula. The ladder method means paying debt step by step. The first rule is for you to allot a minimum of $500 each month from your monthly budget to clear your debts. On the other hand, Snowball Method allows you to pay debts more efficiently. The main point in Snowball is for you to list down all your debt accounts. Then, you have to allot a particular amount for each debt category month after month.
Paying off debts in a gradual yet sure manner means gaining control of your life again.
Go for the traditional real estate investment
A traditional real estate investment is one of the strong assets you can have. Real estate is a robust market and industry. Purchasing condo units and leasing them to others for a period of time will give you more income, instead of getting two or more side jobs. You’re also allowing generous amount of money flow every month.
Investing in real estate assets, however, is not good for everyone. There are investors who failed tremendously and did not make any money. Many people think of the stock market as a complex mathematical problem. You have to understand the technicalities of this investment for you to gain more money. This involves being careful with choosing the companies you’ll put your money to and making sure that you know how to get back your capital plus the intended profits
You have to manage your expectations because, just like other investments and forms of business, the success in stock market investment doesn’t happen overnight. It takes time.