Savings assure that money will not come out at the most time and will be available even when there is no income.
The source Translation for Mixstuff – Igor Abramov
Saving money can allow a person to wear the clothes of their choice, each time they buy a new item without facing stress, retire early to see the world, build their dream home, and Like this. But the most important thing is that it allows you to keep money when you need it, and to make sure that they can be found even in those times when there will be no money.
- Discard credit card
According to Dallas Mavericks owner, billionaire Mark Cubin, credit cards can “ruin” even the most frugal people. Business Insider reported that credit cards are the worst investment you’ve ever made. “Money I save on interest without debt is better than any income I can get from investing in securities.” In addition to the high interest rates on credit cards, when purchases are made with the help of plastic rectangles, we only automatically spend more than necessary. A study by the Massachusetts Institute of Technology, published in the journal Marketing Letters, states that credit card paying customers spend nearly twice as much as those using old-fashioned cash. In addition, they are willing to pay almost twice for the same product.
- Track your savings
Monitoring success can not only increase motivation, but also help maintain a responsible approach to savings. There is no need to just take our word for it: Microsoft founder Bill Gates on behalf of the Bill and Melinda Gates Foundation shared this advice in their annual address. “Last year, I was repeatedly amazed at how important calculations are to improve a person’s financial condition,” he wrote. “If you set a clear goal and find the right measurement method that will help you move towards that goal, you can make amazing progress.” Whether you use a dedicated expense control app or a simple list on paper, tracking savings makes savings more effective.
- Just live
The person who coined the phrase “save a penny has earned a penny” may be right. Although Warren Buffett, one of the world’s largest investors, has been among the ten wealthiest people on the planet for decades and has a net worth of $ 88 billion, he still uses a flip phone and bought it in 31 of 1957. Gaya lives in the house. thousand dollars. Similarly, oil tycoon T. Boon Pickens prefers to keep only the essentials. “People are always surprised that I don’t even have a wardrobe with a suit on,” Pickens said in an interview with Kiplinger.com. “I buy three suits every five years, and I have ten in total.” that’s all I need. “
- First, invest in your own development
There is no doubt that the right investment is the key to achieving financial freedom early. But, according to Tucker Hughes, who earned his first million at the age of 22, the first and most important investment is an investment in himself. He has written in his blog, “Read at least 30 minutes a day, listen to relevant shows and find a good mentor.” – Knowledge absorbed like air. The search for knowledge should be the most important thing in life. “It guarantees a high return on investment, regardless of financial market trends,” says Hughes. Buffett expressed a similar view in an interview with Forbes: “No one can take away from you inside, and absolutely every person has a capability that they haven’t used yet.”
- start small
When Chris Reining made a fortune of millions on his own, and disillusioned with his usual nine-five IT job, he decided to invest more than half of his income in savings. By the age of 35, he had saved a million dollars, and two years later he just retired. What is his secret? No small unnecessary purchases. “I know, many people say that you shouldn’t think of such trifles as a cup for $ 5, but the more I think about it, the more clearly I understand that Denying such a purchase is the best solution to begin with, ”in an interview with CNBC. Finally, according to him, “small changes will gradually allow cardinal changes to be attained in life.” Staying within our means is one of the ten secrets that will help today’s youth retire early and enjoy independence.
- Set a big goal, and then work in the opposite direction
Although skipping small alternative expenses is a great place to start, millionaires also recommend dreaming up something big when setting goals for yourself. Thirty-year-old millionaire Grant Cardon wrote on his blog, “The biggest financial mistake I made was not huge.” And Brian Lim, CEO of Into the AM and I Heartreaves, offers to develop an action plan that works in the opposite direction than the expected amount. “Set the specific parameters of your financial freedom, which you will take as your ultimate goal,” he said in an interview with Santander Bank. “And then calculate how much you need to earn and save in order to achieve the goal in a reasonable amount of time.”
- Try to earn revenue from many sources
A five-year study of success stories of millionaires who have independently earned their capital has shown that most of them have multiple sources of income, ranging from rental real estate and ending with investing in securities: 65 percent Three had sources of income, 45 percent had four, and 29 percent received funding from five or more sources. The author of the study writes, “The more income streams you can create, the safer your financial situation will be.” Even renowned comedian Jay Leno, who has a personal capital of $ 400 million, had two sources of income from the beginning of his career. “When you lose in one place, you win in another,” he said in an interview with CNBC, adding that “you should always spend less than you earn.”
- Only get things that make you happy
Spend money on your hobby, and leave everything optional. It was a method that helped welfare adviser, Adola Omola, convert his $ 70,000 debt into seven-figure capital in less than three years. In an interview with Business Insider, Omol said, “In short, it means that you only need to spend money for pleasure, which brings you happiness.” She said that any additional costs that do not increase your quality of life should be excluded. However, in his opinion, books and investment should be priorities, you may prefer to save money on travel or education.
- Automate your savings
Regarding millionaire and success strategies Ryan Steven says his main trick is that the money is automatically deducted from your paycheck and deposited in a savings account. “When I was younger, it was $ 25 a week. Now it is about $ 1,000 per week. “I can’t see how the money goes into a savings account until I specifically enter the system,” he said. – Most likely, you will soon notice that part of the money goes there. And as your savings grow, you can use them to invest in securities or to make additional payments on mortgages or other loans.
- Maintain close relationships with successful people
According to millionaires, the amount of your savings may depend on whom you communicate closely with. Steve Zilbod, a millionaire and author of the book “What the Rich Thinks”, recommends surrounding yourself with people who share your financial goals and inspire you to achieve them. “In most cases, your net worth reflects the well-being of your close friends,” he wrote. “Communicating with more successful people can expand your consciousness and boost your income.”