5 Ways to Upgrade Your Finances and Lifestyle in the Next 10 Months

Human wants are unlimited but the resources to satisfy those wants are limited; hence, most people need to juggle needs, wants, and resources in order to have healthy finances. However, the Internet is awash with conflicting pieces of personal finance advice – one guru will champion savings and delayed gratification and another expert will advise you to live in the now. Hence, most people in need of personal finance guidance tend to suffer a paralysis that stems from an information overload that makes it impossible to decide on the right course of action. This article provides practical insights that can help you improve your finances in the next 10 months.

1. Earn some more money

Upgrading your lifestyle and finances is very simple, all you need to do is to find ways to earn more money. If your income is higher than your expenses, you'll have an healthy finance – in contrast, you'll always be struggling financially if your expenses are more than your income. Of course, you can choose to reduce your expenses but that could reduce your standard of living and it is doubtful that you'll become a millionaire by walking instead of getting on the bus. Ask for a raise, learn a new skill, change jobs, start a side freelance gig, start your own business, build an app, invest in things you understand—the opportunities to earn more money are simply endless.

2. Start making your gourmet Food

Mealtimes are essential parts of your day that fortifies you with the energy you need to function effectively; yet, you'll be surprised about how much you spend on 'eating out' yearly. One smart way to upgrade your finance and your lifestyle is to stop going grabbing your chow in crappy fast-food spots; learn to cook and start treating yourself to some gourmet lunch. Gourmet food can be interesting, nutritional, and it doesn’t have to be expensive. You can make some extra food at dinner and bring the leftovers along for lunch. Make the gourmet lunch truly luxurious by adding a piece of premium chocolate to the lunch you take to work.

3. Start tracking your net worth monthly

One of the main differences in the finances of wealthy folks and people who are only struggling to get by is the depth of knowledge on personal finances. For most people living from paycheck to paycheck, all they know is that they earn money and they spend money – income and expense. For wealthy people however, they go beyond tracking their income and expenses to paying special attention to their net worth. Your net worth is the difference between what you own (assets) and what you owe (liabilities). To upgrade your lifestyle and finances, you'll need to start thinking in terms to net worth so that you can have empirical data to track your financial growth.

4. Learn how to use other people's money

If you really want to upgrade your finances, you'll need to learn how to use other people's money to further your financial goals –without getting burned. Many new age personal finance experts are pushing the nonsensical idea that loans are bad because some folks got into financial troubles with bad debts. That's just like saying cars are bad because nearly 1.3 million people die in road crashes each year. Loans simply provide you with a lump sum to meet financial needs today while you return the borrowed funds to the owners in installments over a drawn out period.

5. Avoid the trap of lifestyle inflation

In upgrading your lifestyle and your finances, you'll run the risk of lifestyle inflation. Lifestyle inflation is the reality that everybody has a tendency to spend more money if they actually have more money to spend. Hence, when you make more money or save more money, you may notice an increase in your expenses because you 10-year old Toyota suddenly starts looking old and you want to keep up with Joneses. However, lifestyle inflation will keep you trapped in the rat race of living from paycheck to paycheck, albeit at a higher standard of living.