How to Thrive Financially and Enjoy Hobby Every Day
Everyone wants to be financially independent while doing what they like in their life. For many, it is difficult to combine work, which provides income, with the hobby that doesn’t bring that much money and, possibly, even requires investments. Sometimes, the choice is tough but here is good news. If you learn how to properly manage your finances, you will be able to invite into your life more stuff that you really like.
Here are our tips on how to successfully manage your finances so that you could work less and have more fun.
Develop great money habits
Financial independence mostly implies having great money habits. They are hard to form especially if you are more of a creative type. Yet, learning how to be good with money is a must if you want to succeed financially and lead the lifestyle that you like.
Save up enough to cover six months of living expenses
One of the habits, which may come to be very useful, is having at least six months of living expenses saved up. If you have some kind of emergency, you need something to fall back on. Creating a financial cushion is a great way to ensure your peace of mind. For example, if you lost your job, the process of job search will not be so stressful since you don’t need to worry about paying your bills that much.
Multiply your sources of income continuously
Use any chance to create a steady stream of passive income. Since the sources of earnings sometimes may tend to dry up, it is highly recommended to have a plan B, C and even D.
Monitor your expenses all the time
Understanding and controlling your expenditures is necessary if you are determined to create financial stability and increase your income. Keeping track of your expenses might be a boring and tedious process but knowing what you spend your hard earned cash on will help you immensely in the long run.
Invest part of the surplus
If you’re doing well enough at your job and you manage to have a surplus, use part of it as an investment. Anything that is over your half a year reserve is considered to be surplus. There is no need for these extra funds to fruitlessly sit in your checking account since they can bring additional profit.
Learn to say “no”
It might be tempting to take an extra project especially if the client is very persistent. Yet, you need to be prepared to say no to the pushy clients or to the gigs that are not something of high value to you. Your time is important and overloading yourself may turn out to be disastrous for your reputation in case you won’t manage to deliver all that was promised.
Bonus tip: Enjoy what you do!
While it is necessary to be aware of your financial situation, it is more important to love what you do. You need to find a balance between earning money and doing what you like. Hopefully, our tips will help you successfully combine creating financial stability and having fun along the way.