- Personal Finance
5 Steps to a Richer You
We all want to be the next Carlos Slim, Bill Gates or Warren Buffett or Richard Branson so we can live comfortably and do everything we wanted. If you were rich, what would you do? You probably would travel the world. Visit places you’ve never been and stay in expensive hotels. You would buy that sports car you’ve always wanted. A Ferrari or a Porsche perhaps? Now that’s life!
But the reality is getting rich is not easy. The good thing is you can at least start right now so you can have less financial worries in the future.
Here are a few things you should do to become the richer you.
1. Be a cheapskate
Just don’t be one of those extreme cheapskates who use the same string of floss again and again just to save money. That’s just plain gross! But try to find ways on how you can save money by looking for better alternatives to the usual stuff you use or buy. For example, instead of dining out often, try cooking at home more. You’ll save money plus you’ll be eating healthier food.
No Laundry, Saves Money
2. Try envelopmental savings
It’s simple. During a pay day, divide your money into different envelops and mark each one with its intended purpose. For example, set aside money in an envelope marked “utility bills”. You will only use that to pay for your electricity, water, etc. You can set aside a portion of your pay to “entertainment” and use that money to watch a movie. This way, you budget your earnings better and you exactly know where your money is going.
3. Invest, invest, invest
If you don’t know anything about stocks or bonds, then investing in a mutual fund is the safest and easiest way for you to get into trading. Keep in mind that this type of investment is for long-term. Meaning, you should not expect to get your profits in just a few months or even a year.
You can also start your own business. Think of your skills and talents. Is it something you can offer as a service? Financial success through business is all about winning the money game.
4. Stay healthy
Health is wealth as they often say and it’s especially true these days. The cost of getting sick is just too high that it can even get you bankrupt. Just think of the hospital bills, the doctor fees, and the medicines. So it is best that you stay healthy today by living a healthy lifestyle. Eat more fruits and vegetables. Start an exercise program. You don’t have to join a gym, that can cost you hundreds of dollars a month. You can try walking just around your neighborhood or pick up a sport like tennis, basketball or swimming. There are a lot of cheaper ways to become healthy.
5. Pay yourself first
This is by having a savings or an emergency fund. Stick to a specific amount each month and when you get your pay, set that money aside in a savings account and never touch that money unless it’s a matter of life and death situation. This way you will have set aside a retirement fund or for emergencies like if you get sick or get into an accident. It pays to be prepared.
While you many not be able to reach the billion dollar level, you can at least live with zero or less money problems than most people you know. Your financial freedom relies heavily on how well you manage your earnings and if you are monitoring where your money goes.