In this article, you’ll get 20 free finance advice that will launch you into financial freedom.
Please remember that finance has always been an issue of discussion in our world today, hence let us take time to educate ourselves on it.
Firstly, if you really want to attain financial independent, don’t let the person inside of you do the talking.
You need to equip yourself with the financial capacity to overcome today’s challenging world of money.
For instance, according to Robert Kiyosaki, the amount of goods you could buy for $1000 in 1971 would cost you $6431.46 in 2021.
Hence, what would be the case in 2022, 2023, 2024 and the next few decades to come.
However, that same amount invested since 1971 with 6% compound interest rate would have grown to about $20,000 in 2021.
Also, even if you only earn a 4% rate of return, your $1000 will still grow to around $7,000.
Therefore, take note of the free finance advice am offering you right now to change your financial status.
So, let’s kick off.
Table of Contents
20 Free Finance Advice For 2022:
I know their are lots of “make money online” teachings out there, however have you asked yourself why people don’t get rich even after they make all the money.
The free finance advice am about to share with you now will change the way you see money and improve your financial education.
Also, even if you’re already a good finance person, you still need these information’s.
1. Spend Less Than You Earn (No. 1 Free Finance Advice):
We live in a competitive world of money today.
Most people want to show off to their colleagues and friends that they are wealthy.
Hence, they buy expensive items, live the most expensive life’s at the cost of their financial damage.
The problem today is that most people don’t just spend what they earn, they spend more than they earn.
They take quick loans to pay up for their extravagant life styles.
Hence, they never gain financial independence.
2. Never Depend On One Source Of Income (No. 2 Free Finance Advice):
One source of income might leave you helpless if anything happens to it.
Hence, cultivate the habits of entrepreneurs who seek for multiple streams of income.
Even if you earn in millions, you still need another source of income.
The richest men in our world today have multiple sources of income.
They invest in technology, science, health, production, power generation, agriculture, real estate businesses and many more.
Therefore, if you must escape the rat race according to Robert Kiyosaki, become an entrepreneur.
3. Don’t Compete With The Environment (No. 3 Free Finance Advice):
If you ever want to buy a new car just because your colleague at work or neighbor got a new car then you must take a break on it.
Answer these questions sincerely; Do you really need a new car? Is it convenient to your finances now? If no, just ignore it.
Please don’t get me wrong, a new car isn’t bad, don’t get me wrong.
However, if you doing it to compete with your environment then stop that habit.
Also, avoid borrowing money from families and friends to look rich in your surrounding.
Your financial future is more precious than competitions.
As an extra hint, get things only when you need them and when they will be useful to you.
4. Risk Management Control (No. 4 Free Finance Advice):
Learn about investment and risk management control.
One difference between the rich and the poor is their management control.
Get financial education, understand how business works, learn to take calculated risk.
Risk management control is very important if you must learn how to get your money work for you.
Understand profits and loss, then know when to take profits and cut your losses.
5. Put Money Where Inflation Can’t Kill It (Free Finance Advice No. 5):
Inflation is currently killing the purchasing power of money.
Hence, you need to put your money where it will have a good edge against inflation.
Investing your money is a good way out.
Hence, you can Invest in gold, silver or buy shares in growing companies.
Also, if you understand how cryptocurrencies works, you can capitalize on the change of market price.
6. Learn How To Become An Investor (Free Finance Advice No. 6):
Some people are good in making money but bad in investing.
It’s vital for you to learn how to become a good investor.
The world’s known most successful investor today is Warret.
He is a good investor who has proved his investing skills for decades as a billionaire in dollars.
By all legitimate means, we must push out the word “poor” out of our territories.
Being poor is an acronym for passing over opportunities repeatedly.
7. Create Passive Income:
If you can’t find a way to make money in your sleep, you are going to work until you die.Warren Buffett
Passive income is no doubt the best type of income for millennial millionaire.
The richest people in our world today earn from passive income, hence they can earn money even in their sleep.
Passive income are income derived from rental properties, shares and other businesses that doesn’t require your active engagement.
This is one income class you must strive to earn from.
8. Don’t Waste A Good Mistake, Learn From It:
Don’t make the same mistake twice and repeatedly.
Instead learn from it and use it as an edge against future occurrences.
Rich people learn from their mistakes, they take responsibilities for their action.
9. Turn problems to opportunities:
In the real sense, problems breed opportunities.
People with good financial education learn to convert problems to wealth creation avenues.
This is why problem solvers in our world today bag all the money.
Hence, one great financial killer in our world today is not being able to recognise opportunities in the midst of problems.
10. Learn To Convert Your Passions To Profit:
What your passion all about, why not find a way to convert it into a money making stream.
Their is always someone who has turned his passion to money.
Artist do, athletics do as well as footballers.
So check yourself and find the passion in you to convert them to profits.
Similarly, if you’re passionate about computers and software, the world needs software developers, get yourself equipped to fit in.
11. Buy The Crash:
According to Robert Kiyosaki, who is one of my best financial authors.
He love crashes because every time a market crashes, a new opportunity to build wealth is born.
When the real estate market crashed in 2007, he was one of the new investors who took advantage of it.
Crashes are good if you know how to utilize them to acquire valuable assets.
Buying the crash is one free finance advice hidden from newbie business investors.
12. Don’t Run Away When You Fail:
Failure is an option here, If things are not failing, you are not innovating.Elon Musk
You’re not the first person who has failed before.
If you ask the most successful men in our world today, they failed and failed until they learnt how to succeed.
Bill Gates the co-founder of Microsoft also failed severally till he learnt how to succeed.
13. Don’t Diversify, Focus Instead:
Some of the weak financial teachings people give today is to diversify their portfolio and invest virtually everywhere.
However, in the real sense, diversifying would be cruel when you don’t have a good ground in business education.
Replace diversification with focus and keep going.
Therefore, pick one goal and push through till it become productive.
14. Set Financial Goals:
Most people know how to set goals but only few knows how to achieve them.
It is possible to waste $100,000 without doing anything reliable with it if you don’t have any financial goal.
Hence, set short and long term goals, break them down in phases, maybe every 3 months.
Now set daily plans to reach them.
15. No Budget:
Spending without a budget is risky.
It promotes bad spending habits and makes people lose money without knowing.
Hence, have a list of the most important things you need.
In economics, it’s called scale of preference.
List out your most important stuffs and spend according to your budget.
16. Delay Financial Gratifications:
Sometimes its better to delay spending on stuffs you can do without.
As a guide, give 3 days interval to access that new wristwatch which cost $2000 to know if you really need it.
Delaying gratifications will help you avoid losing money to less important stuffs.
The bottom line is to delay unnecessary spending to build your financial and asset column.
17. Tax Advantage:
Study tax laws and learn to use them to your advantages.
The wealthiest people today pay relatively little taxes because they earn from passive income as discussed above.
This explains why the rich pay lesser taxes then the poor and middle class? This is because they understand tax laws.
I got some insight about tax advantages from Robert Kiyosaki on Rich Dad Poor Dad.
18. Learn How To Use Debt To Get Rich:
Rich people borrow to build their asset column, whereas poor people borrow to pay bills or buy liabilities.
Well, its important for you to know their are good debts and bad debts according to Robert Kiyosaki.
Good debts build assets, bad debts creates liabilities.
Therefore, know the one to use.
19. Never Buy Liabilities, Buy Assets:
You must understand their is a great difference between assets and liabilities.
To become rich and financially free, you must know the basic differences between them.
An asset is anything that puts money in your pocket.
Similarly, a liabilities is anything that takes money away from your pocket.
20. Don’t Spend Your Savings, Invest Them:
What do I mean by savers don’t get rich.
Most people save money but never use them profitably even after they save for a long time.
Good financial education requires that money saved should be invested to multiply itself.
it’s good to save money if you’ve a project at view to accomplish.
However saving money for a long period of time will not be advisable, else the banks will loan it out to make profits for themselves.
Also, inflation will kill the purchasing power of any saved money as time goes on.
Hence, only save a portion of your money you can gladly do without.
I had rather prefer you invest it.
Here is another alternative to save money without using a bank.
Over To You:
I do hope these free finance advice will help develop good financial attitude.
Financial education is important if we must make the most of our finances.
Taking charge of your personal finance should be your top most delight.
See you at the top.
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