This is a collaborative post.
In this post, we’re going to talk about how you can live comfortably both now, and in the future. Most people don’t realise that they already have everything they need to live a comfortable life. They don’t need huge houses, fancy cars, and the latest gadgets to ‘be happy’ or feel comfortable. These kinds of things can definitely add to life’s enjoyment, but in some cases, the more things you own, the more you’ll feel bogged down by belongings. Below, we’ll go into more detail about how you can truly live comfortably starting from now:
Don’t Spend More Than You Earn
The first key is not to spend more than you earn. You should be living below your means if you want to live comfortably. You shouldn’t be going over what you earn, and you even shouldn’t be spending exactly what you earn. No truly wealthy or financially comfortable people spend their money paycheck to paycheck.
Find Multiple Income Streams To Build Wealth
Truth bomb: you’ll never get ‘rich’ by swapping time for money at your 9-5 job. Truly wealthy people have multiple income streams that allow them to build wealth, but they have to be prepared to play the long game. You can find numerous ways to make more money, including:
- Passive income – work required but eventually make money while you sleep
- A side hustle – swapping more time but could help you to earn more than at your 9-5
- Rent out a room in your home/rent out your driveway
- Advertise a business on your car
- Investments
Dedicate A Portion Of Your Earnings To Savings/Investments
A portion of your earnings should always go towards savings/investments. You should have an emergency fund for peace of mind – usually 3-6 months of living expenses. Once you have this, you can dedicate your money to investing. Sure, there’s a risk, but if you play the long game you can end up with far more than you invested. Start small and see how you go. Many people like to dedicate 20% of their earnings to this, but you could start with 15%.
Make Sure Your Investments Are Worthwhile
To make sure your investments are worthwhile, do your research, and consider speaking with an expert or financial adviser. Remember that not everything you purchase is an investment, and some things can be more of a liability. Your home, for example; many people will tell you this is an investment, but when you look at how much it costs you, a counter argument could be made. You can ensure that it doesn’t cost you too much over the years by working with Conveyancing supermarket to ensure it’s safe. Be smart about your investments and don’t kid yourself. A car is never an investment!
Track Everything You Spend
Track everything you spend, even the small stuff. You’d be surprised at how it adds up! Come up with a budget, too. This will ensure you have money for everything you need without having to stress or check your balance constantly.
Detach Yourself From ‘Needing’ Stuff
Finally, know that owning more stuff will never bring you true happiness. People think that it will eventually, but all of these feelings are short term. If you can get away from this feeling, you’ll feel far more comfortable!