Wealth creation always starts with saving money and then the money you save on an investment or business to generate more income. Making money with the goal of doing business and investing is a very important step in getting rich and many people are poor because they cannot save money and therefore do not have to invest anything even to start part time or work part time. complete. business time.
Benjamin Franklin said: “The road to wealth is as simple as the road to the market. It depends mainly on two words, industry and frugality: that is, don’t avoid time or money, but use the “Without the industry and the triumph, nothing will do, and with it everything.”
Fertility is basically about saving money. It’s about saving a portion of your income in order to invest it. Those who are not frugal will find it difficult to get rich. Waste life and excessive spending will keep you poor. Rich people are good savers, while poor people are over-spent. If the money raised is not appropriated and invested properly to make more money, wealth creation will be hampered.
To most people (myself included), it is very difficult to save because human needs are inexhaustible. It’s easier to spend money, buy things and have fun than save money. That’s why I’m sharing 12 tips with you in this article to save money. These are strategies that I have been practicing for years and many people also use these methods to save money.
How to save more money:
1. Maintain a savings plan: Don’t leave savings at random. You must have a predetermined percentage of your salary or income that you want to save monthly. The most popular savings plan is to save at least 10% of your monthly income.
You can do it better than 10%, but not below 10%.
You may have heard of a one-size-fits-all savings principle: “pay first.” This means that once you make money, you should save before you spend and not the other way around. The rich save first before they spend, while the poor spend before they think about saving, and in most cases there is usually nothing when they have spent.
2. Keep a separate account for your savings. If you manage to save, your money should not be taken into account. Do not keep the expense and savings fund in the same account. You need to save your money in a separate account, where you don’t have to think all the time.
3. Automate your savings: Go to your preferred bank and set up an automatic debit from your payroll or income account to your savings or investment account. Enter your savings into your return account. A mutual fund account is a great place to save your money.
4. Don’t allow your savings to be easily accessible: One of the best and easiest ways to save money over time is to make sure the money you save isn’t available to you.
Like I said, don’t use a regular savings account to save yourself money. It is best to save the money in an account, before settling money before settling the money, fill out a settlement form and wait a few business days before receiving credit.
Saving money in an account where you can withdraw easily with your ATM card is not an effective way to save money. Just have an ATM card for an expense account.
5. Avoid Losing Money – Warren Buffet said, “There are two rules to wealth:
1. Never lose money.
2. Never forget line number 1.
Don’t invest in what you don’t understand. If you don’t know how the business or investment works, don’t put money into it. Don’t lose hard earned money due to bad investments or business. Look carefully before jumping. Don’t be in a hurry. Make all the necessary findings about the authenticity of an investment or business before you decide to work on it. If you lose money, you will not get richer.
6. Control your expenses with a budget: Don’t spend without a budget. If you go shopping or go shopping without a budget, you will find it very difficult to save money. With a budget, your expenses are controlled and it is not difficult to regret buying. With a budget, you can first prioritize your needs and allocate resources to the most important ones.
7. Avoid the urge: There are many things like clothes, accessories, and properties in our homes that we rarely use, but they are only there. The money we used to buy these things would be used to buy or even invest in other more necessary items.
We have this experience because we have bought most things in a driven way without thinking properly and properly about whether or not we need the goods. We obeyed our emotions instead of our thoughts. When we earn and spend money, our emotions are not a reliable guide. Pay more attention to your thoughts instead of your emotions.
8. Pay off debt with the highest interest rate and avoid new debt – you really can’t accumulate wealth if you have a deep debt. I don’t mean business or investment debt. I refer to debt produced only to cover personal or domestic needs.
Debt, especially high-interest debt, is a setback for wealth creation. You need to prioritize the exit of all your debt if you are serious about getting rich. Then make a firm decision to stop borrowing. Firmly resist the temptation to borrow. If your credit card becomes a perpetual debtor, you may decide to stop using one.
9. Start saving early in life: Don’t wait until you’re too old or spend too much before you start saving.
Early savings have many benefits. It helps you develop the attitude of saving early in life before you start earning big income. The reason is that by giving more money to someone who has not developed the attitude of saving, they will waste it almost immediately. More money doesn’t make anyone rich. It’s more money in the hands of a frugal person who produces wealth. If you start saving early, you are more likely to benefit from cash back if you invest in a good profit and loss account.
Teach your children to learn how to save lives. You can even set up an account for each of your children and start putting small funds into a good interest rate account monthly or periodically. Before children reach college or university age, the annual interest on their investment accounts may be sufficient to pay tuition fees through college and university. I saw someone do it.
10. Write down your expenses: You don’t have to make them every day. However, I recommend that you try to record your expenses for a month. This will help you know where your money is going. If you record your expenses for a month, you get a better picture of your employer. You’ll be amazed at how few habits drain your funds and how much you can save by making some adjustments to your spending pattern.
If you keep track of your expenses, you’ll know how much you’re spending on fuel, transportation, phone calls, the internet, nutrition, housing, utilities, groceries, debt, entertainment, and addiction. Once you’ve seen a typical month for your investment, you’ll be able to see trends and problem areas. Once you’ve found the problem areas, you’ll have a better idea of where you can cut and how much. You can then deposit money into your savings account.
11. Stop Addiction: Some addictions such as drugs, heavy drinking, nightclubs, smoking, gambling, etc. can prevent you from saving.
Therefore, you must deal with any addiction that suppresses you. Ask for help. See advice. You can join a support group to help you with your addiction.
12. Don’t wait until you have excess money before you start saving. Start with what little you have. If you keep waiting until you have extra cash before you start saving, wait forever because there is rarely extra cash, and when you arrive, there are many expenses to be expected. You have to start with what you currently have. This is the wisest.
To sum up
Like I said, it’s the basic step to creating wealth, but it’s easy to save money, because we have an income that needs a lot and the money we earn always seems insufficient to save.
Applying the steps I’ve shared above will make saving easier and less intense.
By saving, you can make more money by investing or doing business.
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