For many of us, improving our finances is a major goal and has been one of the most popular New Year’s resolutions for decades. Achieving financial freedom is a lifelong journey for most consumers and this will see us starting and stopping habits, trying out different financial tactics, and so on.
But outside of completely overhauling our money habits, there are a few small ways that we can take our personal finances to the next level. Oftentimes, these are not very expensive to take on but can be worth their weight in gold.
One of the first things you can do is diversify the type of assets you’re investing in. It’s easy to make the mistake of simply saving in fiat currency, investing in traditional stocks, and calling it a day. The truth is there are many different assets you can make money from, and some of them are even more accessible than traditional options. Cryptocurrency, NFTs, and others serve as avenues to multiply your income. By investing in different assets, you spread your risk around and make sure that no matter the state of the markets, at least a few of your Investments will continue to turn a profit.
The next thing you want to do is make sure that all your assets are secure. Cryptocurrency especially needs to be kept safe, as transactions across a blockchain cannot be reversed. You should make sure that your crypto assets are stored in a cold wallet that is not connected to the internet. On top of this, the wallet should be secured with a password and recovery phrase that only you know. With all these in place, your wallet will be nearly impenetrable, and your crypto assets will be secure in the long term.
You should also take advantage of various tools that help you save for determined periods of time. Many banking apps, for example, allow you to lock away money for a certain period or set up automatic deductions from your account periodically. The benefit of these is that you don’t need to rely on your own self-control. If you want to save $200 a month, for example, you could set up a direct debit on your account. To take things even further, you could have this deposited into an account you cannot remotely transfer from, don’t have a bank card to, or which is a fixed deposit. Many of us struggle to improve our personal finances due to a lack of self-will but luckily, there are tools that help us with this.
Another way to improve your personal finances is to set up passive sources of income. many of us rely on our day jobs to sustain us, and while this is important as well, creating sources of passive income will put you on the path to financial freedom. There are several ways to go about this, and there is something to meet all tastes. You can start a blog, engage in affiliate marketing, stake crypto tokens, rent out equipment, get involved in real estate, and so on. There is a world of opportunity and if you are able to find something that truly appeals to you, you can generate passive extra income for more investments, holidays, savings, and so on.
Improving your personal finances doesn’t have to cost you a fortune or involve some complicated scheme. Taking advantage of free tools, expanding your portfolio to include crypto, looking into passive income, and other steps will put you on this track. This, in turn, will help you attain greater financial freedom.
