Each of us strives for security and wealth.
Being financially independent and having sufficient means for a good life is the goal of most of us.
How can we determine whether our future will be comfortable and satisfying?
There are factors that significantly affect our financial well-being.
Financial Planner Bert Whitehead highlighted the top 10 important factors.
So, what does our future material wealth and condition depend on?
1. How much do you earn
A lot depends on how much you earn. Increasing your earnings is the greatest contribution to your financial future.
No other strategy affects your finances more than this one, so the number one item should be the pursuit of more money.
2. How wisely do you spend what you earn
An important factor is how rationally and wisely you spend your earned money.
Are you a savvy shopper and wise consumer thinking before spending money?
Or are you impulsively and recklessly spending everything you have, not counting anything and not counting?
3. How much do you invest
Are you able to save at least 10 percent of everything you earn?
This is not about the money you save to make a big purchase at the end of the year (like a summer cottage or a car), but rather about ongoing savings.
4. How much taxes do you pay to the state
A legal reduction in your tax liability gives you more money without requiring you to lower your standard of living. You don’t have to give up anything.
5. How diverse are your investments
Your financial future also depends on how diverse your investments are.
6. How stable is your relationship?
Material wealth directly depends on how stable your relationship is.
As a rule, the unstable situation in the family or numerous frivolous relationships distract from the planned plan to become rich.
These relationships consume energy and deplete resources for many endeavors, including financial goals.
While a family or a stable relationship is always support and support, even in the most difficult situations.
7. How literate are you in housekeeping
A lot depends on how competent and rational you are as a homeowner, including your finances in the future.
Being lean and literate is essential if you want to get rich in the future.
Live in a house the size you can handle, drive the car that you can afford to pay.
Don't accumulate debt, live within your means.
Remember that a mortgage loan is a kind of debt that you have to repay. Therefore, take a mortgage only after thinking everything over and only if the conditions are really favorable.
8. Are you living within your means
This means the following: never borrow.
9. Avoid bad habits and various addictions
Remember that a person with a variety of unhealthy addictions is more vulnerable and can be targeted by dishonest people.
It is also difficult to invest in your future if, for example, you have problems with gambling, alcohol or drugs.
Conclusion: if you want to become a wealthy person, stay away from bad habits.
10.Income versus investment
This factor is, of course, important, but much less than the previous 9 points.