Tips How To Become Rich
5 smart ways to get rich, meet money
5 Smart Ways to urge Rich, Avoid Wasting Money
if you cannot stop spending, then tries to save
as much as you will spend. It can also help
.
Have you ever asked yourself before buying
luxury cars or expensive mobiles which have come in the new market, do you
really need it or is your nearest neighbor or friend bought it? The fact is,
even the smartest people do stupid things with their money - whether it is
careless spending or small expenses that add up over time. And when they keep
worrying about where their money actually goes, their hard earned money is
spent due to these expenses.
Here let's look at some common methods, people
who waste money and how they are not able to handle their expenses.
Stop instant gratification
You should be aware that money is earned from the money saved. So, stop
giving instant gratification like eating out tonight, buying that new expensive
phone and going on unwanted journey etc. on long weekends. It can be fashionable
to say that 'I travel to live life' or 'if I don't do it, then what does life
mean', to justify unnecessary expenditure. Before spending a single penny asks
you a question - is it really necessary? If the answer is yes then no, then you
should avoid them. Do not panic by looking at your colleague. Just because your
close friends, family or acquaintances are doing something, it doesn't mean
that you too have to spend on it, says Anil ego, founder and CEO of Right
Horizon.
Budget and spend carefully
another way to avoid wasting money is to create a simple budget (before
salary or monthly income) at the beginning of every month. List all the
necessary expenses you will incur. As the month progresses, clear the expenses
one by one. If you remain on the list, you will save some money. This money,
when invested properly, can lead to the creation of wealth. When you save a
little money, avoid spending it. Instead, spend a little part (5-10 per cent) of it
to reward your discipline. Stop associating your happiness with spending;
instead, combine happiness with savings. If you cannot stop spending, then try
to save as much as you will spend. It can also help.
Save money carefully and invest
Rich people save 50 percent money. The remaining 50 percent are
investing where you get good returns. “Do you know if you save a monthly
Netflix charge of Rs 800 per month for thirty years in an investment instrument
and invest which gives 15 percent annually, you can deposit Rs 55 lakh? This is
the way to invest wisely. If you are under 30, invest a major portion of your
savings in equity / stock-linked products. The loan should only be a small part
of your savings. Through mutual funds, you can spread your savings to different
types of funds. Take 5 percent exposure to sleep. Do not invest in real estate
with a duration of 5 to 10 years, and there are better options, says Rego.
Avoid expense
Being rich means you’re free from any debt. Most
rich people do not take any personal loan on their forehead. Any of the
industrialists, who otherwise run debt-ridden companies, are declared
personally insolvent. But a common man takes a loan because he no longer has
money to spend. When you want to spend money and you do not have money, then
you need a loan. Therefore, you borrow your future income and repay that income
with huge interest. If you pay more than you earn, how will you ever get rich?
Loans or expenses remove our income power because in the end they get deposited
in the bank or financial institution account. If you pay 20,000 EMI every month
for 15 years, then you are unable to pay Rs 36 lakh. If you take a loan, you
will never be rich
Pay bills on time
If you are one of those people who do not willingly or unwillingly pay
their credit card and utility bills on time, then you are wasting a lot of
money without knowing it. For example, if you have 2 credit cards and you
forget to deposit the minimum amount due on time, you alone will pay a lot of
money in late fees. Suppose you are paying Rs 1,000 every month as a late
fee.However, if an investment is made every month in a single scheme, which
gives 8% per an num, it can actually bring you about Rs 15 lakh in 30 years.
Thus, it is known without mentioning that not paying our bills on time is one
of the biggest mistakes that we usually make and which should be avoided in
advance!
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