6 Financial Secrets Truly Rich Have
Spending money is always easier than saving money, even for the riches. The inflation rate seems higher than saving interest while watching your friend who earns less driving a new Benz. Are you wondering how he made it in your old Chevy? I will share the top 6 secrets which help you to spend freely with extra saving in your account.
1.Take a Note
Know where your money goes. It’s very important to know where your money goes. Take a detailed note of each spend you make for daily consumption, no matter it’s for foods or for stationery. Control your daily consumption, be aware of what are necessary, try to make savings each month after all the required expenditure.
2.Make a Plan
A monthly budget helps to save. Like a company’s chief financial officer, you need to make a monthly budget for your fixed cost. There are some fixed expenses like employees’ salary and office rent the company has to cover every month, so does a family. You have to list the fixed expenditure like mortgage, phone bills, electricity bills and insurance. Spare the money that you have to spend and make a wishing list based on priority, then you will have a perfect budget to prevent you from blind consumption.
3.Set a Target
Setting a saving target is the key. The material world is like a magic forest, absorbing the gold coins from your small purse silently. You will be lost if you don’t have a clear target like the stars above the forest. Set a clear and firm target that you will save a certain percentage of your monthly income. Experts usually suggest 10% of monthly income as regular saving to your bank account. You can also set your own saving target depending on your needs, such as for urgent cash, illness, unemployment, or any other unexpected emergency.
4.Cutting Debt Cost
Your debt is stealing your money. No bank will lend you money for free. They will make money from your debts you are owing to them with different interest rate. Therefore, a cost-effective repayment plan can also help you to save money. The credit card interest is usually much higher than your mortgage rate, so the best way is to repay the debt with highest interest first, more likely, the credit card. The better your repayment plan is, the sooner you will get out of the bud of debt.
5.Increase Your Income
Only saving is not enough. If you only make 2,000 dollars a month, you will never afford a million-dollar house no matter how you are strictly executing your saving plan. So, the top secret is, apparently, to make more money. If you can not earn much money from your current job or business, try to find another way to make more money with your specialties, not necessarily quitting the present one.
6.Make an Investment
Money is the easiest way to make money. As we all know, Easy and quick money comes from capital investment. But there are lots of tricks and risks for capital investment. Bank saving account are pretty safe, but it will not reward you much. So, a rational investment will help you to increase your fortune rapidly.
Maybe it’s hard to become a billionaire but you can live like billionaire with the top 6 financial secrets.