From coronavirus to economic contraction, frugality should be on everyone's mind. A frugal person is someone who likes to live and lead a simple life with the quality of being economical with money or food. S/he does not believe in living beyond his or her means. Practicing frugality has its own set of benefits and advantages. A frugal person prefers to live and enjoy an environmentally friendly life, who has more time to spend on himself or herself and priorities straight. He or she does not demand perfectionism in any aspect of his life, which enables him or her to lead a happy, peaceful, content, and satisfactory life.
Benjamin Franklin, a renowned personality, who was a founding father of the United States and along with that a great writer, politician, scientist, and inventor, also wrote some tips on frugality. The following are his ways of frugality:
Benjamin Franklin was not "against" wealth and the luxuries of life. His only question for the people who used to live a life full of luxuries was how they afforded a life of luxuries without harming others. Now you must ask, how were they harming others?
He believed that the actions of such people were hurting others. His whole idea was around the fact that he wanted people to show some generosity. He preached that one should never waste anything and always do well with others and oneself. His ways of frugality revolved around doing charity to help others. Especially in the times of COVID-19, and economic contraction, it is time to help others and be generous.
BE EXTREMELY FRUGAL, TILL YOU HAVE PAID WHAT YOU OWE
Here Benjamin says that one should never give the power to anyone to have control over you or your liberty. Whenever you ask someone for money or when you owe someone, no matter how less or big the amount is, that person has control over your freedom. So Benjamin believed that no matter how thriftily a person has to live his or her life, even if he has to eat a slice of bread for dinner, he should, till he has paid the person back. Benjamin's ways of frugality revolve around a much-known fact, which is, debt will always ruin a person. One should enjoy life and its fruits peacefully and with no stress and embrace everything that comes with living a debt free frugal life. If it isn't necessary, do not take debt on
HAVE PATIENCE, DON'T BE GREEDY
Benjamin believed that if one has decided to invest in a business or start a new business, then he or she should work extremely hard, both mentally and physically, to make it successful. He should spend hours and days trying to make it flourish no matter how slow or impossible the process they may seem. He says to be hardworking and have patience, both in life and in general. Do not grope at every opportunity that might seem to be beneficial or more fruitful.
Hopefully, these humble tips from poor Richard will help you navigate 2020!
The majority of the startups we are aware of today are trying the best to have an idea on the amount of time they can keep the lights on before their businesses finally run out of cash.
The thing is, either a startup runs directly into a cash crunch at a point in time, or they are interested in accelerating their growth. However, there are times whereby startup founders may want to make use of their personal finance to keep the business floating.
Funding With Your Personal Finance
There are lots of entrepreneurs and even small business owners that have embarked in self-funding their startup with their personal finances for a significant time frame.
Sometimes, they do this until their funding opportunities that are outside become much more realistic.
Nonetheless, if you do believe in the vision you have and you have refused to take failure as an alternative, you should surely feel very comfortable investing your personal finances in your own business.
When making use of your personal finance, you will have to be very smart in this game and highly frugal. Also, making use of your personal finance can work in your favor sometime later.
This can work in your favor as your story can be strengthened when the time comes to seek extra funding for your business from investors that are outside.
Like we mentioned earlier, no one believes in your business as much as you do and if you are skeptical about using your personal finance on it, then that is a red flag. Well, unless you have other quick access to funding the business with a cheap capital cost.
Other Strategies For Funding Your Business
Some of the startups we can find today pieced together their funding from diverse sources. While no single source is better than the other, everything relies on your runway, access to resources, living expense, and even capital cost.
It does not matter if you are a startup that is searching for initial seed capital or you are already operating a small business and need money to grow, you have to be flexible and keep accurate financial numbers.
Some of the ways to fund your business without the use of your personal finance include:
Although there are risks linked with funding your startup with business cards, you can always explore it depending on the amount of money you need, how quickly it is needed, and your credit score. However, before you do that, you need to be sure that your startup will be profitable so you wouldn't be losing out on 15-25% APR of a credit card.
Crowdfunding will enable you to promote the vision you have for your startup products and even take orders plus pre-sale inventory before you begin manufacturing it.
With marketing and planning, crowdfunding may likely take months to raise the money you need successfully.
To Wrap It Up
From friends and family to crowdfunding down to angel investors, there are lots of ways to raise money for your startup. However, if you want to go through the route of personal finance to keep 100% of your company, it is not so bad either.
Try coworking today to save money so more of it can go to your startup.
Top Personal Finance Blogs of 2019
If you enjoy reading about personal finance and enjoy staying on top of your finance game, there are lots of personal finance blogs at your disposal today on the internet.
These blogs will aid in providing fresh motivation and deep inspiration that you will need to grow your wealth effectively. Ranging from technical guidelines to individual stories of how bloggers managed to handle their financial problems, there are so many financial perspectives that you can access when you follow up on the top personal finance blogs you can find.
Some of the intriguing blogs on finances you will ever get to find out about are:
Money Under 30
This blog has very insightful information on personal finances and no matter the age; it can come in handy for anyone.
Ranging from advice on loans down to tips for budgeting and everything in between, Money under 30 will help you in keeping up with inspiring content. Its most prominent categories are debt payoff, investing, purchasing homes and cars, your credit score, etc.
Get Rich Slowly
This is my personal favorite! The author of the blog got out of credit card debt and slowly built saving with methods he listed. With this blog, you are at an advantage of building your wealth slowly in time. With just an easy layout, this blog has managed to place quite a high premium on contents of quality that will aid in educating readers.
Interesting topics to be found here include easy tips to make money, maximizing the next yard sale, and so much more.
Most people love this blog because it has to do with a young couple that spends time documenting their path to monetary freedom.
The couple document details on how they are built wealth by living a frugal lifestyle. For those who enjoy looking at lovely pictures and reading personal stories while learning tips on how to manage money, then this blog has you written all over it.
This is yet another personal finance blog that is being operated by a guy who is eager to unleash good content out into the globe.
He will take you through the ins and outs of investing, and he provides commentaries that are insightful for both newbies and experts.
All you need to know is that this personal finance blog focuses majorly on income properties and real estate with serious transparent financials about her very own endeavors.
While the owner delivers advice on finances that are worthwhile, you may not be interested in buying real estate, but she will help in adjusting your overall mindset and increasing your earnings alongside productivity.
With this blog, you will have enough ideas on both tips for saving money and tips for making money. This blog will also be providing free tools that will help to manage your money, including paying off your debt and money investments.
Man Versus Debt
This blog focuses on just one distinct mantra which says: sell your crap, pay off your debt and do what you love. However, you will get to find diverse tricks and tips needed to unload the burden of too much stuff, and it will empower you to save more.
To Sum It Up
If you are confused or lost on how to manage your finances, these blogs will go a long way in helping you figure out how to save and even how to manage your budget.
5 Must Have Life Skills
As you get older, you will realize that life skills are not as clear cut and obvious as they may seem. You will realize that there is truly no handbook for adult life.
It just happens that somehow, you just know that you should have some money coming in, and you should be going for job interviews. There are life skills that are necessary that we were not taught in school
While education tried in giving us the sensibility to see both right and wrong things, understand the world we are occupying and even gave us the confidence to live in a society that keeps throwing difficulties at us.
However, when you take a look at life, you will find out that the majority of the critical learning we have were not gathered in school but by experienced that life threw at us.
Some of the life skills that are necessary for you to have include:
In our digital age, so many of us have lost our communication skills, and we truly need it back. It is a vital aspect of our life that will be used wherever we go.
Most people have no idea what personal finance management is, and that is why people tend to spend on unnecessary things. An intriguing skill we should groom is knowing how to earn better, what budgeting entails and also how to save.
It is a basic life skill because there may come a time when you are all you have got and the belief in yourself, your dreams and aspiration will be what will take you so far when no one else believes in you.
Being flexible is a life skill that is needed in a bid to thrive in our ever-changing ecosystem.
To Sum It Up
Life does not adhere to only what we were taught in school or taught by our families. It is a complex world, and that is why it is vital to at least have two or more of the life skills mentioned here that will help you in your path.
San Francisco can get expensive and with daily spending getting so high, it might be important to keep track of your spending habits. Keeping track of your budget can help you maintain your finances easily. With the help of technology, it has become easier to access personal spending and budget tracking through mobile phone devices too. In the past, Microsoft Money and Quicken were the two programs that were used by people. However, with advancement, more efficient and refined applications have become accessible to all of us. If you want to figure out the best app to track personal spending, here are a few options to pick from:
One application to track personal spending is Dollarbird that will let you add past as well as present expenses to the built-in calendar. It will then calculate the influence of your spending on the total balance that you have. Moreover, it will also categorize the spending based on different things you spend on. The perks of using this application include:
For people who struggle with calculations, Level Money can be really useful. As you enter your total income, it will subtract the number of your expenses and savings to give you the leftover amount for personal spending. You will know how much you have in your account for purchasing stuff each day or month based on the calculation.
Another wonderful application to track personal spending is Mint. This app lets you create your budget based on different categories for each month. You will have graphs that will tell you about how much you are spending. Moreover, it sends warnings as you reach your limit along with helping you keep your credit score on track.
Technology has made it quite easy to reach your credit score goals. If your focus with personal spending is to enhance credit score, Wallaby is a great choice. It makes a list of transactions to identify which card you should pick to make your purchase at certain merchant sites.
Penny is more interesting as it keeps track of your spending habits like a friend. It sends you texts as well as notifications that comment on your spending habits. If you are looking for a light and interesting app to keep things under control, you can give Penny a try.