Most people think that the key for their financial success is earning very high salaries, establishing a profitable business or finding some other way to get rich. But there are much simpler and easier ways how to get yourself into a sound financial position.

Becoming financially independent is a nice dream, but for most people is unachievable. It would normally take years of hard work or in many cases only winning a Lotto would get you there. This article is not about how to get rich quick, but about few simple key steps that can make everyone financially successful in their lives.

Living in todays world is not easy. There are so many new things being constantly advertised as something you must get to be cool. As a result most people’s wishes far outweigh their real financial possibilities.

To make things worst one does not have to battle only with his or her own desires, but additional pressure is exerted by their spouses and kids. The easiest solution offered to bridge this discrepancy is to get that cool thing now and pay it later, or in another words get it on Credit.

Once you fall for it, then it’s very hard to get out and it will drag you behind like an iron ball chained to your leg. So, the key number one for your financial success is:

Key #1: Never, never, never accept or get yourself into a credit.

It may sound like an advise from your grand grand father, but that’s actually the ultimate truth. Don’t discount the wisdom of old people. If you get yourself into credit, banks or other creditors will start taking share of your pie for a very long time. And the more credit you take, the bigger part of your pie they eat.

And not just that.

With repayments you are not paying only the interest, but the principal of your loan as well. Accepting a credit will cut into your income and decrease your standard of living for the whole duration of the loan. The longer it is, the more you pay and the worst off you will be.

Therefore, the main, most important key for your financial success is saving the money first and buying things later. Saving will even get you something extra in form of interest you can earn if you keep money in a savings account.

Key #2: Live within your means, don’t try to keep up with the Jones.

Most people are in a dare financial situation because they are trying to portray themselves in a better light than they really are. In another words trying to keep up with their friends, neighbors or colleagues.

Despite it being very hard to overcome this constant urge, try it and the result will be astonishing. If you are a family of 2 adults and 2 kids, try living in a 2 or 3 bedroom home instead of 4 or 5 bedroom mansion.

If you can save on rent or mortgage living in a less posh suburb then by all means do so. You don’t have to move to the ugliest area, but choosing one that is just a little bit further from the city centre can in a long run save you tens and maybe even hundreds of thousands dollars.

Living within your means starts with the house you live in, but it doesn’t end there. So, the other parts of this key for your financial success are things like:

• Limit your dinning out. Restaurants and even fast food chains can proof very expensive way to feed your family.
• Buy things you really need, not the most expensive versions of consumer products. I know that everyone wants to have a brand clothes or the iPhone. But if you could have survived without an iPhone for the last so many years of your life then surely you will keep surviving without it. There are smartphones for 20% of the cost of iPhone. You can browse the internet, check emails or Facebook status with them the same way you can with an iPhone. Your sacrifice to go for a cheaper stuff will save you lots of money.
• Use things to the end of their useful life. You don’t need the latest model of the TV or computer every year or two. If they still work, don’t replace them with newer models and keep using them until they virtually don’t fall apart or up to the point when doing so becomes too impractical. Five years for a computer or 10 years for a TV sounds reasonable.
• If possible, own only one small or medium sized car per family. It is nice to have one car per every adult in family. However, car ownership is very expensive thing. It’s not only the petrol you have to pay, but insurances, maintenance cost, registrations, WOFs, occasional damage, etc. If you have 2 cars, all these costs double, for 3 cars triple and so on. With one car per family you may run higher petrol bills and loose some time for driving people around, but in the end it will pay off.

The list could go on, we won’t be listing all possible examples. At this point you probably should have gotten an idea what these other things may be.

Generally, the main key for your long term financial success is leaving within your means, not overspending and avoiding credit. If you think that it would be a very hard thing to do then you may try it only for a limited period of time.

We are sure that once you get into a routine then over time it gets much easier and the financial benefits associated with it even more strengthen your will and desire to continue.