Financial flexibility is a state in which you can afford to spend a few more dollars for your favorite cuisine in a restaurant. You can afford to buy a more comfortable home with heating and cooling systems. You can afford to treat your parents in a specialty hospital. You can afford to send your children to international schools. You can afford to spend two more days of holiday in Hawaii and the Bahamas. Well, you can increase the list to infinity. But how you do it? Here are a few simple tips.
Essential Spending: You need to give top priority for the essential spending to your household items, grocery, utility bills, tuition fee, etc.
Other Priority: Would you prefer to spend more on an annual holiday or having an expensive sofa in your living room? Would you spend more on buying a home or have an extended holiday in Taiwan? We are talking about prioritizing the spending. When you spend on your mortgage loan, it is possible to save on rent and reduce the risk of having to change rental homes frequently. It is also an investment as the future asset.
Asset Accumulation: Accumulate assets for you and your family. Spending on buying moveable and immovable assets is an investment. You may buy appliances, equipment, and tools, car, gold, bonds, shares, and stocks, etc.
Leisurely Spending: You can take a well deserved holiday during Christmas and New Year. You don’t need to spend a fortune. But you can surely make it memorable for you and your family. Plan your holiday so it can refresh your mind and energize your body.
Language Skills: There are plenty of opportunities to earn extra in the present digital era. You can take up a franchise of an established online language school. If you are well versed in foreign languages, it is the best opportunity to earn. Online translations, interpretations, and transliteration are some of the works in demand today. You may also create English subtitles for foreign language films and documentary.
Other Skills: You may open a small business from your home. It could be selling art and artifact. You may choose to sell handicrafts from Asia. You may choose to teach Yoga. You may choose to open an Italian or French restaurant in your city. You may choose to sell artificial jewelry from or you may choose any other part-time job and small business. Your aim is to earn extra money apart from your regular salary.
You may reserve your salary income for household expenses, loans, insurance, tuition-free, and medical expenses, etc. You can also reserve a part of your salary for short-term and emergency funds. But your entire savings from part-time job and small-business should go into long-term saving.
Optimizing the procedures for earning, spending and saving can give you the maximum financial flexibility in your life. You can dare to spend a few more dollars for the cappuccino you drink at your favorite restaurant on your next visit and smile.