We all have ambitions that are directly or indirectly attached to how much money we are able to make. This is why facilities for earning money are part of the legacies parents bestow on their children. And why making certain financial decisions becomes a recurring decimal in our lives.  

But except we are particularly wise, it is not easy in a world as competitive as ours to keep your head above the muddy water of the financial world.

Though very possible.

Regardless of what you do or who you are, setting your priorities right and being realistic in the pursuit of your ambitions are key to your success with finance.

The big question is how to get it done.

Well, here is how.

 1.       Be prudent with money  

Financial prudence starts with some level of spending discipline in the areas of earning, spending and saving. You spending should be in line with your earning. And you must save money.

To save money invariably means to spend less. And this has little to do with how huge or meagre your income is; it is basically about resetting your priorities. Spending only when spending is absolutely necessary.

Spending above your earnings is just an open invitation to bankruptcy. And it can easily give room for a self-inflicted financial stress.

Also important is what you spend on. The best spending is the one done to get more money. I mean investment.

Mere saving up money is not wise. You need to invest your money as you climb up the ladder of success, rung after rung.

2.        Get passive/side income

Talking about a side investment, every employee needs one. Though it might be suicidal to ditch your main source of income, yet you must always go about with the knowledge that no amount of paycheque can win you your dream.

What does this mean?

It means you are only buying time to finally say goodbye to salaried jobs for good and set up your own business. Even though borrowing is generally discourage, it is not in this case. You may borrow to start a business.

And if you are able to keep the side business healthy, it can be nurtured into a mainstream business, and can later become your success.

3.        Start your own business

This is a rather tough decision but a most prudent one. You just have to go solo and start your own business. No amount of paycheques can give you the kind of financial independence you need. Meanwhile, with a grand homework, you can get started on a low budget.

It is no longer necessary to have a huge amount of money to start a business. There are many business ideas that can start off little with a projection of gradual future extensions.

You can as well save money on some things.

Getting a virtual office address for instance is not in any way as expensive as renting an office apartment. And it does not need any office furniture or other stuff. Meanwhile it affords you a workspace that is almost better than a physical office does.

Just think of a business idea that your budget can sustain and forge ahead.  

4.        Prepare for your retirement

As an employee, this appears to be easier compared to when you are self-employed. Probably because it is statutory in many countries for employers to pension their employees. But when you work for yourself, the story changes.

Whether you are an employee or employer, know that pension is something very fundamental to your future. Certainly, a time will come when you will not be capable of working any more. Yet you will not stop incurring expenses.

This is a worrisome fact for many.  But once you are sure there is something out there to fall back on after retirement, your psyche is boosted and your wellness reinforced.