When it comes to your finances, view them from the standpoint that they are a business you are operating.
Businesses do three things every year: they make sure they have positive net cash flow, they have working capital, and they plan and budget.
Budgeting and planning every year ensures you are meeting the goals you set for yourself to build your wealth successfully, and that you can pay for both your wants and needs.
The rise of the gig economy has helped people build multiple streams of income.
People choose to take on gig jobs for many different reasons, but it’s a great option to help pay down debt, save more, or earn some extra spending money.
There are pros and cons to a gig job, to include being self-employed with the freedom that entails, to the associated taxes that come with that status.
Using Other People’s Money (OPM) comes in to play in things like a matching 401(k) where an employer is matching their money to yours to put away for your retirement.
There are three leveraging tools in a 401(k): Other People’s Money, pre-tax savings, and tax deferment.
If your employer offers a matching 401(k), you will save more money for retirement in the long term than you would saving money on your own.
Balancing your cash flow is about enjoyment now versus later.
This is a subjective arena, but if you look at an objective case study, you can see that it is possible to either save now or later with the same end result.
There are two caveats to either spending now or later; you have to consider how you would adjust to taking a cut on your spending habits, and you have to think about how your long-term health affects your plan.