Do You Want To Become Rich? You Should Follow These Tips
If you suddenly happen to inherit a six-figure fortune from a distant aunt or land a high-paying job, you could land among the top 1% of earners. But, if that does not happen (which is most likely), you will have to adopt these habits that will make a difference between a life of constant financial stress and one of prosperity.
There are people who talk a lot about what you need to do, yet they do not follow their own advice. Well, the guy we choose to listen to is David Blaylock from LearnVest Planning Services CFP®. He doesn’t simply advise his clients on all the positive things that come out of good money habits, he also practices what he preaches.
For instance, Blaylock says “I do a periodic review of all the subscriptions I have—the ones that hit my credit cards each month. You’d be surprised at how many subscriptions we all have and how many go unused. You could create some significant savings each month just by looking at those things.”
So, take inventory of your recurring services and subscriptions. This can be the first step on your road to better fortune.
When you ask Nancy Butler, a Certified Financial Planner™, she says that if you look at the average amount of cash that you will earn throughout your life, and figure how many years you have already been working, most people will come to a conclusion that they will earn more than a million dollars over their working years. And yet, very few people actually become millionaires. Do you know what makes the difference? How you manage the money that goes through your fingers.
Here are the steps toward wealth that financial planners recommend.
Decide where you want to go
Imagine your goal. You need to know what you want your money to do for you. Once you have a goal to strive towards, you will have better chances to actually get there. Make a five-year plan. In five years I want to save sixth months of income for an emergency fund, or for a down payment on a house, or for a big event.
Make your own rules
Make rules that you will spend by. You can’t spend more than $300 on something that isn’t essential. For example, you can’t spend more than $50 on shoes. You can’t spend more than $15 on an item of baby clothing. You can’t eat out more than once a week. Once you limit yourself, you will see that you are saving up incredible amounts of money.
Change the way you think
When all the taxes are taken, and all the bills are paid, that poor paycheck of yours might seem a bit unfortunate, and the idea of saving for retirement might seem a bit far-fetched. Unfortunately, if you are looking to build wealth, you need to think differently. No more putting off saving for a better time. Start now. Not with a $1000 per month. Try with $50. In time, you will build momentum, and pile up a small fortune.
Sure, you are in your twenties or thirties, and retirement seems to be light years away, so saving up for it is not your first priority. You have an apartment to pay for, a vacation to get ready for, a wedding to attend, so how are you supposed to save up for retirement? The problem is, the later you start saving, the more you will have to save. If you start saving at 30, it’s enough to put $50 per month into a savings account. If you start saving at 40, you will have to put $110 per month onto your account. This is because your money will have less time to grow, and that minimizes the impact of compound interest.
Live like you are secretly rich
Don’t flash the money you have, but live well below your means. OK, so you can afford every trip, every meal, every piece of tech, furniture or clothing you want, but you shouldn’t. Most of the wealth in America is the result of hard work, smart savings, and living below your means. Just find a point where you get everything that you need, where you are happy, and stay there.
You should enjoy your life but also save up for the future!
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