Top 4 Money Mindset Tips for Financial Freedom

For a more prosperous and happy life, it's not how much money you make, but how much money you keep and how your money grows.

Many people do not know that the concept of money also reflects their own life.  A right outlook of money will lead to a happy and prosperous life.  On the contrary, if you have the wrong mindset about money, your finances can become increasingly difficult. Here are Top 4 Money Mindset Tips for Financial Freedom.

1- Save first, Spend later

After receiving salary, save 5-10% of income before spending.  If you're worried about not being able to control your shopping urges, deposit them as a monthly savings. Losing this meager money amount won't make your life quality worse.  On the contrary, this money mindset tip will help you get rid of worry and feel the joy when your savings increase over time.

As you get used to spending less money, slowly increase this ratio to 20%-30% or even more.  There are people who have successfully reduced fixed costs to 10% and 30% as flexible costs, the rest is savings.

2- Classification of expenses and budget

If you often spend money unintentionally then below are useful money mindset tips for you.

- Expense classification:

You should categorize your expenses into 3 levels: The first level is really necessary cost as money amount for food, transportation, house rent, phone. The second level is necessary but not obligatory cost as money amount for things that enhance life quality but are fine if without them such as coffee, clothes,.. And the third level is desire cost as money amount for things that are higher than current income, need to save money to buy such as traveling abroad, luxury bags, branded watches,..

The first level is the basic cost of life which cannot be cut, but you can save the second and use the last spending as a reward every time you achieve something.

- Make Budget first, spend later: 

After analyzing your expenses for 2-3 months, you already know how much you spend each month on each type of expense.  At this point, make a budget according to the category. Budgeting also reminds you of how much money you have left to spend for the month.

3- Delay satisfaction and Stay away from temptation

Buy things only when you are sure you need them. Your happiness shouldn't just come from wanting to own something.

4- Investing 

There are two levels of investment, one is  asset investment, the other is investing in yourself.  The most fascinating thing in economics is "compound interest".  Interest can greatly enhance people's satisfaction with life and is also a potential source of income.  In addition to savings, learn about other investment channels and choose the most suitable investment method.

Asset investment can increase income, but investing in yourself can increase principal.  You can enhance your core competencies in the workplace including communication skills, relationships, foreign languages ​​or complementary skills.  These are necessary for any job position and profession, differing only in frequency of use.  Also, don't forget that owning certificates can also bring higher income.

Top 4 Money Mindset Tips for Financial Freedom

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