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What are the different factors that affects your chances of making Money, 7 Factors that affect your Finance



What are the different factors that affects your chances of making Money


There are quite a number of factors effecting your chances of making that Money you have always wanted to make and the biggest one of them all is lack of Understanding, while we could assume that making money is a thing of luck and chance, let's also take a critical look at some wealthy people who have Money and access their ways, thoughts, comments and Quotes if we would ever come across the words chances or luck in their statement relating to money. While I will not totally dispute the fact that some people have gotten into wealth through chances and luck, the rate of these set of people will arguably be small, very little like 1% compared to the average people who will admit that hard work and to some extent timeliness and being prepared for Opportunity solved the puzzle.

Before we proceed, I want to talk more about the term hard work as people have confused being smart with being hardworking. You can be hardworking yet your result or produce would be little, probably because you might be in the wrong niche of Business or you are not doing things right, at times due to negligence and some terrible avoidable mistakes that you have not taken into considerations as being a mistake and further take the steps to fix it. 

                                     Imagine someone who lives in a well advanced society where Innovation has taken almost every aspect of their day to day activities and he travels to a rural city far away from Modern civilization where an awkward design of Wheelbarrow was given to him with some items inside of it, not knowing how to use it, he picks it up and put it on his head and start walking towards his appointed destination. Now let's analyze this scenario, the guy is Civilized, hardworking but at this point not well informed and wasn't smart enough to make enquirers or ask, we agree that at some point he will get to learn that he was doing the good thing the wrong way, but how soon and in some cases would he admit it and make amends.

1. How much your earn, daily, weekly, monthly or yearly

The number one factor that will determine your Financial Stability, Security and Abundance  is the number of sources that your earnings comes from, if you are only earning Money from your Salary, then it means that you might find it difficult to foot your bills and still have some money set aside to save or Invest, if your earning is less than $5 per hour then it's about time you get to increase your source of Revenue in other to earn more from multiple sources. In this Era of Information and the Internet Age, you can get extra income at home while offering an online service through platforms like Fiverr, Upwork, and Freelancer.

2. How wisely you spend your Money after you earn

How wisely you spend after you earn is also a huge factor in determining your Financial security growth and stability. The number one rule of spending is to earn first before you spend and the second rule is to make sure that the next smartphone, hair, or gadget you intend to purchase is a necessity rather than a want, don't be an impulsive spender, always think twice before committing to buy, don't fall a prey to the Advertisement of a company except otherwise. You can use tools like Minisaving and SpendIt to track your Spending habits and also get Financial advise on spending.

3. How much you are Investing out of your Earnings

The third thing you would want to consider as being crucial and important is to see your earnings as another opportunity to re-invest rather than to spend it all, see your earnings as a seed that has the potentials to grow more Fruits and make smart Investment decisions in Stocks, Startups, Multi Level Marketing or a Business of your own. You can also resort to Investing in people, it is one of the greatest thing to do, be a part of someone's School Fees, be a part of someone's Career, Education, Hospital Bills, and don't ever look back.


4. How well you are minimizing your Tax

In so many Countries, most especially in Western Nations, Tax is always a thing that drains people, it is unavoidable and inescapable, one can't escape it due to the advanced system of user Management and record keeping, everyone is assigned a Tax Payers ID and their  salaries and earnings can be tracked to the last cent. In countries like these, all you have to do is not to evade your Tax but to lower it by getting discounted tax rates, most of the times you can achieve this using third party platforms like iTax.

5. How diversified your Investments Portfolios are

We talked about Investing after you earn earlier on and in this factor we will consider why you should diversify your Investment portfolio and have multiple sources of Income, but don't get me wrong, I didn't say you should become a Jack of all trade, there is a Quote that says "you can do anything but not Everything", which means you can't be doing so many things at the same time or else you will only end up with half-baked cake results, try as much as possible to focus on niches of Investments that are closely related and try to build them one at a time and with time you grow it, don't try to do all at once. 

6. How stable your Relationships are, Family-wise & Business-wise

One important thing you need to understand in Life is that your psychological, mental, and emotional state of mind or health will go a long way to hinder, limit or frustrate your chances of making Money or succeeding financially, have you noticed that when you are not in terms with your girlfriend, Spouse, Fiance or your close acquaintance that your state of mind won't be at rest and at times you find it difficult to focus because such state of mind will drain your Energy and leave you weak and helpless. Try as much as possible to maintain a healthy relationship and you will find the motivation, passion and energy to work your way to Financial Freedom.

7. Living within your reach and means 

As much as you can, always sew your coat according to your size, that is more like a parable that say's that one should live within his or her means and not go beyond limits of his or her financial capabilities for any reasons when doing anything, either Investing, Shopping, Supporting or saving, you cannot earn $2,000 and resort to saving everything, you will pay for bills and would take care of feeding till the next pay check or earning inflow.

Summary on 7 factors that affects your Finances and how you can avoid them

 

If you can adhere to at least some of these factors and begin to grow thereby, you are rest assured of becoming Financially Independent and Secured.


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