Do you want to be Rich in life?
If no, go away and try else where, this is not for you.
If yes then read on below for richer details, though. Pardon the pun.
1. Know what you spend.
How much did you spend on food last week? What do you pay on your housing (rent, repairs, utilities, tax, etc) every year? Without knowing how you’re spending money, you can’t begin to make any money. To sort this, you must track it and to do this get yourself an excel sheet like this here below.
Here, I track each item per day (Yes I know it is in spanish, more advanced later where I cover compounding ideas to make it easier, For now it is enough that you know it covers different items eg food, travel, going out etc). I can then use this to track what I am spending each day and then take action later on with that information.
2. Start with little steps, like your bank.
You shouldn’t be paying any annual fees. You should have a good credit card. And you should know the tricks to save yourself money from the banks. You can start today by calling your bank, checking what interest rate you’re getting or overdraft fees, and changing your account if necessary.
You shouldn’t be paying any annual fees. You should have a good credit card. And you should know the tricks to save yourself money from the banks. You can start today by calling your bank, checking what interest rate you’re getting or overdraft fees, and changing your account if necessary.
3. Your money should earn more money for you.
After you get yourself organised you should soon be getting money into the account each month, thanks to your tracking expenses to make sure less than your income and also better bank account and credit cards. Even when your money is just sitting there, it will earn you interest, even with low interest rates right now that will change in future. What’s even better is that now with an increasing income, more options now open for you. For example investing in stocks. If you invest sensibly in stocks and other areas, you can see excellent and relatively predictable returns over the long term.
After you get yourself organised you should soon be getting money into the account each month, thanks to your tracking expenses to make sure less than your income and also better bank account and credit cards. Even when your money is just sitting there, it will earn you interest, even with low interest rates right now that will change in future. What’s even better is that now with an increasing income, more options now open for you. For example investing in stocks. If you invest sensibly in stocks and other areas, you can see excellent and relatively predictable returns over the long term.
4. Don’t let money ruin your life.
This might seem to contradict what said earlier but it is true. Certain things are worth spending a lot on if they make you happy. I love chocolate every so often, even if they don’t make financial sense. The minute your rules start making you feel miserable, it’s time to re-examine your rules. Remember nobody becomes rich not having a cup of tea in the morning or being unhappy.
This might seem to contradict what said earlier but it is true. Certain things are worth spending a lot on if they make you happy. I love chocolate every so often, even if they don’t make financial sense. The minute your rules start making you feel miserable, it’s time to re-examine your rules. Remember nobody becomes rich not having a cup of tea in the morning or being unhappy.
5. Chill and Don’t be stupid.
Everything I write on this site is centered around aggressive but sensible investing. That means investing for a 10-year outlook (better: 30) and ignoring the news about sell, sell, sell or buy buy buy hot stocks every day. Buying and selling stocks every day also sounds sexy, but it’s actually very dumb due to to the fees charged and also by the time you hear about it, it is too late to get the 'Hottest' new stock.
Everything I write on this site is centered around aggressive but sensible investing. That means investing for a 10-year outlook (better: 30) and ignoring the news about sell, sell, sell or buy buy buy hot stocks every day. Buying and selling stocks every day also sounds sexy, but it’s actually very dumb due to to the fees charged and also by the time you hear about it, it is too late to get the 'Hottest' new stock.
Follow these 5 rules and you will benefit enormously over time. Use them wisely and I will be back to help you lead a rich life.
