How to Gain Your Financial Freedom

Many people would love to go on vacations or be able to buy the things they need, but that’s not always possible. The truth is that many of the things people buy are not always necessary, thus reducing their budget for vacations or for all the other things that they’d like to have.

If you’re wondering how you can improve this, it’s actually easy. There’s a rule of 50%-30%-20% for managing your budget, while there are also plenty of other things that you can do to increase your income. Let’s take a look at that rule and see what you can do.

50% for Bills

When you count your bills and your money, make sure it doesn’t cost you more than 50% of your whole income. Count everything that you have to pay each month – the utility bills, the mortgage or the rent, the gas bills for your car and the credit. The whole amount should be below the given percentage to make sure you can survive from month to month.

30% for Daily Expenses

When you manage your budget, leave 30% of all your income for food and other expenses. Learn how to cook at home and buy fresh ingredients for your cooking. Don’t buy more than what you need and always pay attention to all those small things – groceries, bread, sweets and other ingredients that you need to have in your home.

20% for Saving

Each month you should save about 20% of your income. The reason is simple – you will have money for a future vacation or for unexpected expenses that can arise in the future. If it’s possible, you could save more money, depending on how much you spend for other things.

A Business

If you want to increase your earnings, you could start a small business. If there’s something that you know how to do perfectly, you can try to earn money out of it. For example, if you know how to make websites, you could make sites for others and charge for your work.

If you’re a woman and you like having beautiful nails, try taking a course for becoming a nail technician and applying gel nails. Some women pay a small fortune for having beautiful gel nails, so you could make good money. You could also do other things, like learning how to create interior designs, how to clean a house or how to run a coffee shop.

Some business ideas require more investment than others, but there’s surely something that you could do for increasing your earnings and still apply the above rule. The best thing, however, is to choose something that you’re good at and it will all come easier for you.