- Know your monthly income and expenditures and keep control of them every month.
- Never spend more than you make (if you do, you will never end up with financial difficulties!).
- Always save a portion of what you make (use the bucket system and automate your finances).
- Understand different investment alternatives like stocks, mutual funds, exchange traded funds, bonds etc.
- Know your numbers – how much income you would need to cover your monthly expenditures
- Have a strategy (and execute on it) of investing your money in something which generates a passive income like: Coupon paying bonds, dividend paying equities or in a business which pays dividends etc.
- Always be learning as learners are earners and earners are learners!
If you do save money but don’t make that money work for you (passively) it will take much longer to build wealth (might even be impossible because of inflation). You should therefore make sure you understand the basics of investments and if you don’t, learn from someone who has made it. All wealthy people make sure they have different sources of income, they don’t want to rely on only one, nor should you (also see my suggested readings on this topic).
You might say you don’t earn enough, but then I urge you to read this article and think again: This guy never made more than 14,000 USD per year but amassed a fortune of 70,000,000 USD!! The short answer to how he did it is that he pretended there was an additional income tax of 20%. So even if he didn’t think he could afford it, he saved 20% of his salary every month and invested his money in the stock market..What would you do if the government forced you to pay another 20% tax on your income? You might argue about it but eventually you would pay…. Why not start that payment right now but to yourself?
Money is important to all of us (to different extent) but at the same time I think many of us would be much better off (less stressed) if we had control over our finances and planned according to our long-term goals. Our health is always going to be the most important thing as without that, we have nothing of value. I also genuinely believe that if you serve others and treat them honestly and fair, money will come your way. Personally, I will not make money my top priority as I don’t want to become a slave to money. Money is just a servant that should be used wisely to make things better in life:)
The most important things in life are actually free, would you not agree?!
At least for me, I feel that as long as I have those (ideally under full control), I would be happy in most situations and regardless of what I was doing/wearing etc. For example, with the right friends, the environment doesn’t really matter. With the wrong people, not even the fanciest environment will make up for the company….
Actions to take:
- Go to our Wealth Section and learn the language of money, it will serve you the rest of your life!
- Passive Income is the name of the game!
- Use this super strategy: The “easy” way of becoming a dollar millionaire
- A great way to get started is by having a Side Hustle
So take responsibility and control of your finances and don’t become a slave to money, make money your servant!