What are 4 steps you can take to improve your financial situation this year?
While some parts of the world are returning to some form of normal, there are still others that are facing some of the worst aspects of the pandemic. However, it is worth spending some time to look at what you can do now to improve your financial situation. It’s never the wrong time, but let’s face it, having additional income options now is a good idea, right?
This is particularly important if the pandemic dragged you and your bank balance through the wringer. Here are some options that I recommend you consider exploring.
Buy Property
If you’ve followed this blog for any length of time you will know that I love property as an option for growing your wealth. For my Australian readers, you will know the passion we have for property. And right now, property prices around the world are exploding.
It is hard to know why in these difficult times that property is going up so significantly, but I’ve wanted to be someone who fights the trend, so jump on board the fast moving train while you can. Nothing beats getting above average returns early in your investing journey, it makes leapfrogging to the next one even easier.
You have probably heard that renting is dead money, and this is true. The reason it is referred to as ‘dead’ is that you’re not getting anything from it in the long term.
There’s also no financial security with renting either. So, instead, you should focus on buying property as soon as you can to get the benefits of the rising capital growth.
If prices are rising too rapidly to be able to afford a new or established property, you can look at purchasing a fixer-upper. There are so many reality tv shows that can give you ideas of how and what to do, and while getting something a little cheaper you are able to generate great capital growth with a fixer-upper.
Either way you go, property is a great way to grow your wealth and add an additional income stream to your household finances.
Start A Business
Ok, I get it, starting a business in a pandemic might sound like a stupid idea, however, stick with me. I’m not suggesting a brick-and-mortar style business, they are way to risky right now. You only have to walk down any major city street to see how many shop fronts are empty.
The alternative is to join the growing number of people who are starting online businesses.
Tony Robbins calls this the Knowledge Business. More and more people are converting their passion and skill into online businesses. I know people who have converted their passion for corset making, herbal remedies, health, fitness, social media, business growth, game boards, and almost any interest you might into online businesses.
This is a growing industry and one that anybody can take advantage of. And the great news, if you don’t have a passion for anything in particular right now, you can still get involved, by selling other people’s products and getting a commission in return. It’s called affiliate marketing.
If you want to learn more about how to get started in affiliate marketing, click here to access a free course that explains all about it.
Regardless of what type of business you choose, an accountant will be an essential hire. Small business accountants can ensure that your books are always in order and your business finances remain healthy. A good accountant can help you save thousands in wasted costs or overpaying tax by having the right structure for you. So make sure you consider getting a good accountant once you start to grow your business.
Improve Your Financial Situation with Stocks
You could also explore investing in the stock market.
It’s easy to assume that investing in stocks is risky, but it doesn’t have to be. With the right selection criteria and some simple risk management strategies, investing in the stock market can actually be one of the safest places to grow your wealth.
The thing to remember is that you are not playing a game, you are in the market for the long term. By staying for the long term, you get to ride out the ups and downs and benefit from the fact that the market is always growing to new highs in each new growth cycle.
And the great thing about stocks is that you get the benefits of both capital growth and dividend income. You have the option to bank the dividend income, or reinvest it, which really supercharges your capital growth by using the power of compounding.
You can access my stock selection criteria here.
Explore A Secondary Income
Finally, experts agree that to keep your finances healthy, you do need to make sure that you have a secondary income.
The right secondary income will provide you with the extra cushion of cash that you need to pay for unexpected bills and little luxuries.
There are countless secondary income options that could benefit you in the long term. For instance, you might want to think about working as a tutor or perhaps completing some landscaping if you love working with your hands.
If you get this right, then there’s no reason a second income can’t be something that you love and enjoy.
Conclusion
So, there you have 4 steps to improve your financial situation this year. The smartest thing you can do right now is to pick at least one and give it a go.
If you want help selecting the one for you, let’s jump on a call and work out where you are at, where you want to be, and how to get you there simply and effectively. You can claim a no-cost call with me by scheduling a time in my calendar here.
The time to act is now, so let’s get you moving in the right direction from today.