When it comes to personal finance, there are tips and tricks for everything. There are 5 tips for financial success however that we believe are vital to financial freedom. The first one has to begin with paying off credit card debt, the most toxic form of debt but when overcome creates a clear path towards massive wealth creation opportunities.
Pay off all of your Credit Card Debt
Paying off your credit card debt ranks as our number one financial success tip simply because it is a tool designed to keep you in debt as long as possible. Minimum payments create little to no progress towards paying off your debt while taking out large sums of your earned income. Credit card debt is the number one hurdle towards getting ahead financially. You have to be diligent to not fall into the credit card trap, but if you’ve fallen behind and have accumulated a revolving balance then there is a way to get out. Consider the snowball or avalanche method to pay off your credit card debt. Remember credit cards have compounding interest, meaning you pay interest over the interest already compounded each month. So make it a priority to kick this type of debt out first, make 2022 the year you got out of credit card debt and never got back into it. Pssst, Qoins helps you pay off credit card debt 8x faster with better automation tools. For those with credit card debt exceeding $15k remember that consolidation is a great tool to help you save on monthly payments and interest.
Get Paid What You're Worth and Spend Less Than You Earn
Building wealth is very simple, you have to spend less than you earn. That’s why someone making over $100k can live paycheck to paycheck (1 in 5 do) while someone with half of the earning power can be on track to being a millionaire in retirement with proper financial habits. Getting paid more in the form of career advancement or side hustles is one fight, but spending less is a separate plan that must be deployed. Think of how much you should be earning, is it in line with your skill level and experience? If not consider asking for a raise with a proper justification for your ask. Consider applying for positions that will pay you what you’re worth. If you’re not there yet, focus on becoming a top performer, upskill in your free time, and with some time you can increase your income by 20% or more. But all of these efforts are useless if you’re lifestyle inflates with your income. You don’t need a more expensive apartment, or a better car, you need to build wealth.
Stick to a Budget
Budgeting is not something that is kept in your head, this is the easiest way to overspend and fall short of your financial goals. You need to know where your money is going, and setting up automated withdrawals whenever you get paid is the best way to stay on budget. With Qoins you can auto-save every time you get paid, you can auto-pay debts as well. Setting up bills, credit cards, and investing on autopilot is the best way to follow a budget… without ever thinking about it.