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3 Bluntly Simple Personal Finance Advice That Work Miracles

The Huffington Post The Huffington Post 3/11/2015 Elena Prokopets

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I have never earned a lot, but I always had the money -- both for essential things and some random spending on things I like. Travels, for instance. Pursuing a location independent lifestyle, hobbies and a lifestyle business, rather than a soul-crushing corporate career.
Now before I move to practicalities, I'd like to make an important disclaimer. This post is targeted at people with mid-income, struggling with optimizing their saving and spending habits, rather than those crumbled under the weight of student loans or crippling credit card debt. I'm sorry, I have never been in your shoes, so I can't give you proper advice.
Right. Now back to the money matters for those who are doing pretty fine, but would love to do it even better!
1. Cut Down On Things You Hate To Pay, Rather Than Those You Like

To sum it up, my idea about financial stability revolves around the concept that instead of merely cutting down dramatically on your expenditures, also learn to earn enough for the lifestyle you'd like to have.
Take advantage of any worthy moneymaking opportunity that comes your way.
Got a spare room or leaving for along vacation? Rent out your place on
Airbnb to cover the bills.
Going on a long trip? Grab a buddy via BlaBlaCar to split the gas bill. Or side hustle with Lyft or Uber to earn some bucks on top.
Got extra savings money? Start investing by setting up a Roth IRA (unless you already have one) or invest in precious metals - a time-proven strategy that never fails.
Are you a cooking maven? Invite guests for your fab dining parties through EatWith.
Last, but not least -- you can always get a side job to help you earn some extra cash and potentially replace your full income. There's plenty of online and offline gigs requiring zero to mild prior training. The freelance world is booming, and it's a high time to take advantage of it!
Starting an online business and automatizing it to the point till it becomes more of a passive income is a no-brainer other. You don't need a lot of money as the numerous case studies from The $100 Startup book prove. You don't need to keep a stock of goods if you choose drop shipping as your strategy. You can automate most of your business operations, outsource the rest, and choose to focus only on tasks that appeal to you with the modern tools and apps.
3. Do Not Buy a House as an Investment

As Ramit Sethi pointed out in his
recent article buying a house is "a dumb, dumb propaganda from the multi-billion-dollar lobby of the National Association of Shitty Realtors Who Lie To Take Your Money."
Let's take a closer look on the idea of "owning a house." The Millennial generation I also happen to be part of does not rush into buying real estate, and I believe there are enough good reasons for that.
If there's one thing the crash of 2008 should have taught us, it is that homeownership is no longer a good investment. Sure, these days things are looking more economically stable, and your neighborhood is pretty nice, but Detroit city center was once an attractive place to live in as well. Economic downturns also mean high chances of loosing your job and getting buried by the mortgage you still need to pay.
Mortgage interest rates are another tricky thing to consider as you win only if your house steadily increases in value over the years. If not, well, you have just paid one and a half to two times the original price. Mortgage interest deductions have an "iffy" future, so I would not count much on those.
If you just want to own a house because you like the idea of having one -- go for it. Just make sure it is the house you can afford to have. If you want to get one for the sake of investment - don't do it.

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