9 Smart Money Tips To Help You Quit Your Job

Mint, the highly reviewed finance management site, just posted an interesting article on how you can establish your goals and work toward a day when you have enough money or alternative income to quit. Do visit the link above for full article.

Here's an extract:

Tip 1: Diversify your income sources - In addition to increasing your income, diversification can ensure that if one source of money dries up, you haven’t lost everything. Losing your job won’t mean the end of your income, and you will be in a position to ramp up one of the other sources to replace the lost salary.

Tip 2: Develop passive income streams - Even as you diversify your income sources, you’ll realize that there are only so many hours in the day. The beauty of passive, semi-passive and residual income is that these streams continue to generate money even while you are occupied at your regular job, meaning that you can increase your income exponentially without being limited to how much you can actively accomplish during working hours.

Tip 3: Pay yourself first - Make saving money a priority, and set aside a percentage of your income as savings.

Tip 4: Avoid debt and high interest rates - Huge credit card balances and car loans are two of the biggest pitfalls on the way to wealth.

Tip 5: Live like a millionaire - The Millionaire Next Door, that is. Mimic the frugal habits of self-made millionaires if you wish to join their ranks. They spend less than what they earn, research large purchases, avoid debt and pay cash for their vehicles. The very wealthy tend not to have especially expensive taste.

Tip 6: Invest wisely and regularly - Don’t invest in things you don’t understand, and make sure you diversify your investments to minimize your risk. Set up automatic investment contributions, and participate in any employer-matching plans available to you.

Tip 7: Stay married - Divorce is one of the leading destroyers of wealth in American families. The cost of divorce, legal counsel, child support and alimony add up to severely limit your ability to save money and grow wealth.

Tip 8: Track your finances - A written budget, whether it’s in your notebook or online at Mint.com, keeps you on track and gives you a visual representation of your overall financial picture.

Tip 9: Borrow carefully - Look for the lowest interest rates available, and only take out loans that make sense for your financial situation.

Early retirement or the opportunity to pursue your dream job? The choice is yours. Follow these easy tips and pretty soon the millionaire might not just be next door, he or she might just be living in your house.

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