Building wealth over time is a matter of following basic steps and sticking to them with discipline.
Even if you have a small salary, following are easy changes you can make that can help move you further along the road to prosperity.
1. Pay yourself first.
Paying yourself first does not mean you consume all your hard earned income. It means saving a percentage of your earnings first then using what remains on your expenses.
This requires steep sacrifices including foregoing some things/activities that deplete your wealth or are a liability to you. It will help you put more of your wealth toward investments that are right for you.
2. Live Below Your Means.
You must live below your means in order to have funds to save. This will give you financial freedom and free you out of debt to save more money.
And even though, this kind of lifestyle isn't sustainable all the time, always remember that, reckless spending will one day catch up to you.
3. Tackle Retirement Now
For those who are in their twenties or thirties, retirement can seem far away and so saving for it might not seem like a priority.
Don't be fooled that pension will do you a favour upon retirement because in today's world they are becoming very rare.
Retirement savings will ensure that you live comfortably in retirement as well as avoid being a burden to your relatives in old age.
4. Get Out of Debt
There is a price for every debt you take, which comes in the form of interest which you could have saved to build on your wealth.
Even though some debts like student loans are necessary avoiding them with all costs should be your priority number one.
5. Increase on Your Earnings
Below is a screenshot of strategies to use to increase your earnings.
Conclusion
There's one thing that only you can completely control and that is how much you save. Start now and you might be surprised at how little you notice the sacrifice.
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