Personal Finance II: How to Improve Personal Financial Health


In my previous post (here), I mentioned the three basic rules to improving the financial health of any individual. Now, I am going to talk about the fourth and fifth basic rules:
  • Fourth: Most of us spend first and then save. But this is just not the way to go about things. If you want to save money, then you have to save first and spend whatever is left after saving. First, you have to spend on yourself i.e., save money for your future requirements then spend on current requirements. 
  • Fifth: Never depend on one source of income. Develop a second source of income regardless of whether you are in service, self employed, or running your own business. You do not know when one source will dry up. You life will be happier and more financially secure as soon as you understand this fifth basic rule and start following it. 

Your second source of income could be:  a part time job online or offline, income from investments, an online or offline retail store, tuitions, yoga or hobby classes, working as a part time real estate broker, blogging, becoming a member of a multi-level marketing company (such as Amway, Avon, Oriflame, RCM, Tupperware), etc. What you take up depends totally on your skills, interest, and experience. So do not wait. Start thinking...!!
One thing you should understand is that income from the second source will not start flowing in the minute you start working. It needs a lot of time, effort, and passion. And I know you have that!

Hope you like this. Let me know your views in the comments section.