How does one access excess income in a declining economy? Short answer: planning, lots and lots of planning. Useful answer: read on.
The term “millennial” is often associated with struggles, like employment, financing and housing, as well as a blame towards the older generation for letting the economy go so far south. Despite the economy not being on the youth’s side, we’ve got to make the most of what we’ve got.
Subscription costs vs one-time costs
Subscription costs are the ones that occur on a stable frequency, like utility bills, Netflix subscriptions, and gym memberships. While most of us are aware of the approximate amount of subscription costs, the picture becomes much clearer when they’re all recorded on a uniform platform that helps keep track of where the money goes every month or so.
Finance-planning apps like Toshl help users understand the parameters of their spending. For example, after recording all of one’s subscription expenses, the app calculates the percentage they count for out of the usual income. While it doesn’t sound like magic, the software really shines when all expense and income details are put in.
The app works its magic to give you an insight on subscription-like costs that otherwise wouldn’t come to your attention, like how much your car actually costs you on annual basis.
One-time costs are pretty much self-explained, however they do act like an effective reality check when you check your record of occurring them on your finance app.
How does knowing how I’m wasting my money going to help me have more of it?
“Once you have established a budget and have clear short-and-long-term goals, one easy way to get in the habit of saving money toward those goals, is to simply automate it. Set up regular and automatic deposits into your investment and savings accounts, either directly from your paycheck or from your checking account,” reported a financial advisor from Merchants Bank.
Among the highest recommended apps to help out with that task is Digit. The crunches all expenses and incomes provided with, then calculates a potential saving margin. Action becomes serious when bank accounts are connected, so the app actually withdraws funds from your paycheck or checking account and places them in saving accounts, rendering hiding money under mattresses an obsolete approach.
What if interest from my debt is too high for me to have any savings?
This part is most-relatable to people dealing with college or university loans, whether during studies or after, as well as those paying off mortgages. For those folks, this blog post includes several tips on how to make the most bang out of your buck. However, there’s an app for every aspect of our lives now, making debts a very obvious issue to address.
The way it works: Much like other financial apps, the app prompts users to enter all their financial parameters, including the details on the loan. The app then devises smart payment plans, depending on the intensity the user chooses for their installments (Avalanche: High payment value, shorter time – Snowball: Low payment value, longer time).
Single-stream income vs multiple-stream income
“Don’t keep all of your eggs in one basket.” While the cliche saying is generally overused, it makes perfect sense for those who desire more than what they have.
You might be a fortunate individual who has a well-paying job (not sure why you’re reading this, if so). However, if you’re not content with the pay you receive, a sheer miracle or multiple-stream income source are your only hopes for a better financial situation.
While people often work for various amounts of time per week, almost every individual has a margin when they’re completely idle. Multiple online platforms aim to utilize said idle time, Upwork often comes on top of the list of those platforms.
The web platform connects employers and people who are willing to do freelancing tasks of diverse natures.
Last but not least, upgrade yourself!
We often struggle to find interest towards acquiring new skills. However, I’ve personally found it easier to expand on a current skill, rather than acquire a new and unrelated one.
For example, if I’m a content creator, why should I stop at just literature? Why not opt for graphic design, photography, or animation as an expansion for my career? The same applies for most careers, like doctors who can expand into activities into online consultation on platforms, such as Kaigo Health.
While significant wealth seems to be a result of either a brilliant idea, connections or a spark of luck – technology has reached a level where every demand is bound to find its supply and there are still plenty of ideas out there.