Enjoy a Healthy Life by Achieving Financial Freedom
We often worry about the food we put in our bodies along with adhering to an exercise or fitness routine. We do this because we all want to be healthy. Our health is what allows us to enjoy everything we wish to do in life. What we often overlook, however, is the many mental factors out there which can wreak havoc on the overall health of our bodies.
One of the major mental factors we all face is the stress of money and it can have a detrimental effect on our bodies. Research has shown that the more you worry about money, the higher your risk is for serious health complications. Health problems associated with money worries include migraines, heart attacks, ulcers, muscle pain, digestive problems, and one of the most harmful effects, depression.
Thankfully there are numerous things we can do to minimise the stress of money. Just as exercise and choosing healthy foods promotes good health, so to does learning about your finances and really taking an active role in trying to manage them properly so as to remove the stress that can lead to all the mentioned health problems.
Life is short. There are no guarantees that we will be here tomorrow or the next day. Unfortunately, this undeniable fact is often overshadowed by the pervasive nature of money (or the lack thereof) within our lives. Countless individuals spend the majority of their existence mulling over limited funds. As a result, they are not able to fully enjoy the world around them. This is a very real tragedy and yet, numerous remedies exist. How can we earn an extra income in order to develop sustainable wealth and to take advantage of the world around us? Let’s take a look at some sure-fire concepts to keep in mind.
Realising Money for What it Truly Is
Before we go any further, the old saying is definitely true that money does not necessarily equate to happiness. Indeed, there are countless millionaires who are displeased with their existence. Money is rather a means to an end and nothing more. Once we begin to truly appreciate this concept, we can begin to leverage the benefits that liquidity has to offer. So, let’s move on.
Saving for More Than a Rainy Day
It has been said that youth is wasted on the young. In other words, we tend to avoid planning ahead for the future at an early age. This can be a big mistake, for failing to take into account important tools such as pension plans and ISAs can leave us in fiscal jeopardy as we begin to age. It is therefore crucial to look into these options sooner as opposed to later. Choosing the best package will enable you to grow a healthy and lucrative nest egg. Let’s also keep in mind that these funds can be accessed in the event of an emergency.
Allow Your Money to Work for You: Online Investing
Inflation rates within the United Kingdom currently stand at three per cent. This represents a five-year high. Not only does this decrease your purchasing power, but the meagre interest provided by a standard bank account hardly covers for such a disparity. As opposed to literally losing hard-earned funds over time, why not place them into a position where they can work for you?
Online investing is one of the most effective methods to accrue an additional source of income over time. As opposed to in the past, you will no longer require the help of a professional wealth manager or financial advisor. Streamlined and intuitive platforms such as CMC Markets have taken much of the guesswork out of the equation. Traders have immediate access to such instruments as:
- Forex trades
- Contracts for difference
- Index-based investments
- Spread bets
Of course, a fair amount of research will be required in order to determine which option(s) are the best for your needs. Still, the online investment community is growing at a breakneck pace.
The Rule of Ten Per Cent
Many financial experts recommend that individuals set aside ten per cent of their monthly earnings into a completely separate account. Not only is this prudent from a fiscal point of view, but you will be amazed to see how quickly such funds can add up. They can thereafter be used at your discretion. Once again, this “buffer” also provides you with a sense of psychological security as opposed to living from pay cycle to pay cycle.
If you happen to fall into a higher tax bracket for 2022, then you should probably consider setting aside more than 10% of your monthly earnings. The amount can vary from situation-to-situation, and only you can determine how much of your earnings is necessary to provide general contentment in regards to your living situation. Anything left after that can be set aside, be it 10% or 50% or anywhere in between.
The Psychology Behind Financial Freedom
Financial independence represents just as much of a mindset as it involves planning ahead. Those who are truly happy with their current situation will not constantly fret about profits, losses and margins. This is a much healthier attitude, as we have shown that worrying about money causes so many health problems.
When we finally depart this earth, we cannot take our money with us. Steve Jobs and John D. Rockefeller both realised this natural law. However, leveraging the benefits of financial freedom is the best way to enjoy our limited days upon this amazing planet.