So your cash flow is tight, but you still want to set yourself up for financial success in the future. If that sounds like you stick around to the end of this blog because today we’re going to go over five things you could do right now to set yourself up for success.

Let’s get started with the five things you could do today to move you ahead financially down the line, whether you’re just getting started or maybe your income isn’t as high as you’d like it to be, these things can make a huge impact on your financial future regardless. 

The first thing you can do is to start saving today, no matter how small the amount. There’s an old proverb that says “The journey of a thousand miles starts with one step,” and that’s the key. Pay yourself first, no matter how small that amount is. That’s right. Start saving and start saving on a consistent basis. These days we have so many subscriptions and auto-pays and everything else in our checkbook every single month and it seems like there’s always more. Pay yourself first. No matter how small the amount. 

This brings us to number two: never drain the tank. Keep this in mind. You’ll never see the interest you don’t earn. Once you put that money aside for savings for your future self, don’t drain the tank. Don’t use it to go on vacation. And don’t use it to go buy your car. Now, we’re not saying don’t use that money. What we’re saying is to use your money in a way that you’re able to always continuously earn compound interest on the money. So it’s always working for you, but you’re using other people’s money to make your money more efficiently. It’s the key fact. Leverage will move your head. Never drain your tank. 

The third thing you can do to move forward and set up your future self is to live within your means. For many of us, that might mean that we need to set a budget and stay within that budget

Number four: keep your savings liquid, and free from taxes, losses, and government regulations. Conventional wisdom teaches us to save our money in places where it’s inaccessible, places like qualified retirement accounts like IRAs, simples, SEPs 401k’s or 403b’s. Where we have to pay a penalty if we access before age 59 and a half and at all times we have to pay taxes, and it’s taxable as income when we access that money or non-qualified accounts where the growth is taxed every single year on that account. And we all know you can’t accumulate wealth in a taxable environment. 

Rule number five is probably the most important. Not all debt is bad, especially when you own your debt. You see, when you own your debt, you’re in control of the terms and conditions of that debt, meaning that you can set up the interest rate. You can set up the payment plan. You can set up how the money is going to be used. The bottom line is you’re in control. But think of it this way. Before you pay that loan, you control the value of that payment. 

Let’s say it’s $450. So, this month, you control $450. The next day, when you make a payment to a credit card or on a car loan, you no longer control that loan. The lender controls that $450. Now, here’s the key. When you control your debt and you own your debt, you get to control the payment before you make the payment and you get to control that same amount of money after you make the payment. That’s complete control. And that’s why we’re sticklers for putting our clients in control of their money. Why? Because when you’re in control of your money, you’re in control of your cash flow and you’re in control of your life. 

Think about it this way. When it comes to owning your debt, it could be likened to having money in your pocket and sliding it over to your right pocket. At all times you have full liquidity, use, and control of that money. The bottom line is this, when it comes to your money, keep it in your pants. 

If you’d like to get started on your financial journey, visit our website at Tier1Capital.com. We have a free web course, the four steps to financial freedom that goes through our process step by step and could show you how to get ahead financially.

And remember, it’s not how much money you make, it’s how much money you keep that really matters.