Friday, December 11, 2015

How to Free Yourself from the 'I'm Poor' Mentality

Financial fears prevent you from taking financial risks, accepting new opportunities and making monetary decisions. They interfere with your financial security and freedom and hold you back from achieving financial success throughout your life.

Start Saving Early - You might have to live paycheck-to-paycheck when you start your career. However, you can start saving a small amount of money every month and put it in your savings account.

Come out from the Fear of Debt - While it may seem impossible to resolve all your debts, you can grow a large savings to cover your unexpected expenses and put down more cash while borrowing.

Look for Affordable Housing Options - Go for smaller and affordable housing options so that you have enough funds to cover other expenses. Grow a savings and diversify your investment to afford a house.

Build an Emergency Fund - You can overcome your fear of losing your job by building an emergency fund. You should save 6-8 months of earnings in your emergency fund. You should also keep sufficient funds in your regular checking account.

Protect Your Identity - You should take certain preventive measures to protect your identity. You should not carry your social security card in your pocket. You can opt for debit or credit cards which have secure payment options.

Save for Retirement - You can go for company’s retirement and pension plans as soon as you enter the employment. You can save a few hundred dollars every month which will give you more value in the future.

 Know Your Investment Options - Don’t put all your money into the stock market. You should be aware of all the low and high risk investment options. You should go for an investment option with which you are most comfort.