We ponder a lot when it comes to money and sometimes we wonder how rich people get where they are now. Be like Bill, perhaps.
Well, the future cannot be predicted precisely but there are always ways to have a direction towards it rather than nothing at all. Hence, the points stated below may give you an idea on establishing monetary wealth.
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Balance between saving and earning
There’s a saying that goes “It’s not about how much money you make, it’s about how much you keep”.
And that’s not wrong at all. However, keep in mind, money must be earned before it is saved. Therefore, there is no reason for us to put less emphasis on how much we earn compared to how much we save. For instance, as a fresh graduate working on our first job, we may not earn so much for starters. That’s the point when we start to save what we earn. Saving is vital in structuring our monetary wealth. From that point on, we slowly work our ways to earn more money.
Aside from saving more or waiting to get a promotion at work, we can find ways to diversify how we earn money. We can focus on establishing multiple income streams. Know the difference between saving and earning. Practice smart saving habits. Explore creative ways to earn more money.
It is obvious that one of the ways to earn more money is by investing. However, how long does it take before we start to invest? The best time to start is in our 20s! This is exactly why, the earlier you start, the better. It is where the money that we saved comes to play. But, it needs to be smartly played! Investment as always comes with risks. And keep in mind, investment will bear its fruit in the long run. It requires time and patience.
Stop buying things you cannot afford
Living below our means will eventually help us establish our monetary wealth. If we spend as much as we earn, then we aren’t actually making use of the money we posses. It won’t get us rich! You can be rich and still remain your modest self. Getting a pay raise does’t mean our lifestyle needs to be elevated as well. Remember, it is easier to lose money that to earn or save em’. If getting the acknowledgment that we have succeeded means having a luxurious lifestyle (often, that’s the case), it is actually worth more to be acknowledge for your character or work ethic.
Prioritise saving over spending first
This basically is caused by our impulsive tendencies. For example, to typically get social acknowledgment, to look cool and get attention. Aside from our ego, it is safe to say that credit cards are the prime culprits to this. Credit cards are double-edged. Credit cards tend to lead to the idea of spending conveniently and recklessly. However, in actual fact, it offers an alternative to certain emergency situations. Come to think of it! When we get our monthly paycheck, what do we do first? Pay off our “debts”! Pay the landlord, the credit card company, clear the telephone bills and so on. Well, maybe its time we can set aside a certain amount of our pay to save first and make the debt payments automatic?
Having a goal for our money
Hard earned money! We are made to work so hard for it. Therefore, a way to safeguard our money from making use of it the wrong way, we can start to have a financial goal. We can draw up a financial plan. That way, we can visualise what we want to use the money for. Travel the world, start a business or save it for our kids’ education, perhaps? Anything that is worthwhile. In general, we won’t get to where we want to be or achieve if we don’t know where or how to start.