It’s difficult to become a financial success. There is no sure route or time-tested plan to follow. Still, it’s possible to realize your dream of building wealth. It’s possible to thrive instead of merely surviving. The trick is to take small steps. Each one builds momentum. You will then see a clear path that you can follow.

Here are three ways you can change your financial life forever.

1. Consult With a Financial Advisor 

Make an appointment with a financial advisor and discuss your financial situation. They will not only help you put your situation into perspective because they are objective, but they will also help you develop goals and plans. Their financial planning services cover a wide range of things, such as how to budget, invest, and plan your estate.

2. Get out of Debt 

There are many ways of getting out of debt.  If you owe a huge lump sum, speak to the creditor to arrange small payments, or if you are being charged interest on the debt, say a credit card debt, then pay a little more than the minimum.

The biggest challenge, of course, is not how to manage debt but where to get the money to pay off debts. You could raise the money by getting a second job, starting a side hustle, developing a passive income stream, selling things you no longer use or reducing your expenses.

If you have several unsecured debts, it can be time-consuming. Not only do you have to figure out how to pay each one of, but you also must make your payments on time.

One solution to this dilemma is debt consolidation.  This is consolidating all your bills into one simple, manageable payment once a month. You could, for example, pay a portion of your personal loans, medical bills, and credit cards each month.

Loan consolidation gives you five advantages: 

  1. You spend less time organizing your financial affairs. 
  2. You reduce the risk of making late payments and incurring late fees. 
  3. You make fewer mistakes in your monthly budgeting; for instance, sending too much to one creditor and too little to another. 
  4. You lower your other expenses each month because creditors may waive interest rates or reduce them in return for regular monthly payments. 
  5. You protect your credit score by completely paying off all your bills each month.

3. Develop a Passive Income Stream

If you don’t have a job, then start there. Get a job that will cover your living expenses. If you do have a job and you are doing the best you can but still struggling to pay your bills because your basic living expenses exceed your income, then consider acquiring passive income.

This is an income that requires little to no effort on your part because your money does all the heavy lifting for you. For instance, you could get into index funds, buy high dividend stocks, launch a YouTube channel, or learn how to do affiliate marketing. 

If you don’t have enough money to invest, then starting an online business is a good way to start. However, creating passive income online is something of a myth. It will take some effort to get things set up, and you may have to put in some effort to keep things going.  

However, after you put in the initial effort, it won’t take up much of your time. For instance, if you write a Kindle book, it will take some effort to write the book, publish it on the Kindle platform, and promote it. However, after that, the book will start producing residual income. 

In conclusion, managing your money better is the first step to becoming a financial success. Once you take the first step, other steps come into view.