It’s good that you follow financial principles because when you do so, it will increase your chances of being successful financially.
When you observe the lives of most people that have failed financially, you will notice that they don’t follow the right financial principles we will be discussing shortly.
I’ve listed some financial principles below and I feel that if you follow them, you are on your way to financial success.
Save part of your income
It’s a good idea to save part of your income monthly if you work or regularly if you do business.
If you can do this from time to time you will cultivate the saving habit.
So my advice is that you save part of your income even if it’s convenient for you or not. You can do 10%, 20% or 30%
Make monthly budget
When I say you need to make a monthly, I don’t mean you should make the budget complex. You can make it simple for yourself to understand.
You just need a breakdown of how you will spend your money for the month. Write the things you intend to spend your money on.
Diversify your source of income
One of the ways you can increase your streams of income is by doing business. That means if you are working you will start a business alongside your job. Of which it isn’t easy.
But let’s say you are a business owner that means you can have more than one business so that you can have different streams of income.
It’s usually not easy when trying to run several businesses at the same time, it’s going to take a lot of effort on your own part but it is doable.
You can also look at the option of investing your funds with financial institutions so that your money can work for you and yield returns.
Don’t spend more than you earn
One financial principle you have to follow is not spending more than you earn. Try to practice this principle and make it a habit
Spending more that you earn can be so cool at the initial stage but it might have a negative effect on your finances later because spending more than your earn means you do not have savings or you are living on loan
Avoid debt
Try to avoid debt as much as you can because debt is like a cycle, once you get into it you will find it hard to come out of it.
I know taking loans seems to be the easiest option when you need extra funds to run your business but my advice is that you try to source for funds from other sources and taking loans should be a last resort.
Work hard
There is no substitute for working hard, when you work hard you will see the result.
A lot of people talk about working SMART and not working hard but I do not think it’s possible to work SMART without working hard.
Whatever work you find yourself doing, make sure you put your best into it.
Seek financial advice
It is important you seek financial advice when you want to make financial investments else you should be ready to lose your funds and suffer heart breaks
If you don’t like taking advice then be ready to lose money also.
And when taking financial advice, do not take it from a quack that’s not grounded in financial matters because you will still lose your funds possibly more funds this time.
So you should take advice from a professional
Conclusion
On a final note, my advice is that you take your financial life seriously by planning and following the financial principles we’ve discussed.
Although it’s just one aspect of your life but it’s an important one that you should take seriously.