How Can I Save Money on a Low Income Fast?

Posted by kentemad on in Personal Finance
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A report from Credit Suisse in 2013 showed that 13.2 million millionaires existed in the US alone that year. That’s huge number.

So, what are the wealth secrets the 13.2 million millionaires (the number may have increased several folds since 2013) won’t tell you?

Today, we are going to share a list of the secrets that are increasing the number of millionaires in the US. The millionaires probably don’t want you to know these secrets. But we have found them for you.

Spend less than you earn

If you want to join the club of millionaires, always spend less than you earn. This will not only add money to your savings, but will also keep you from bankruptcy. And over the long haul, it would be good for you to go incognito millionaire rather than spend more than you earn, which will land you to the club of the poor and bankrupt.

Waiting without complaining

Chances are you won’t become a millionaire over few days or weeks or months or even years. Remember, patience is virtue. If you continue spending less than you are earning, you should wait and see your wealth grow slowly. And as your wealth accumulates, the odds are that you are set to become a millionaire over the next few years.

Spend a modest life

Millionaires became millionaire because they spent modest lives. If you are a family of three, you should live in a 3-bed 2-bath house, and cut spending drastically on unnecessary and unhealthy food and luxury items. Don’t invest on gadgets that won’t help you accumulate your wealth. And when it comes to your car, avoid big and luxurious ones. Instead spend on a car that is more fuel-efficient and has less maintenance cost.

Pay off your credit cards in full

Pay off your credit cards completely every month. On the path to become a millionaire over the next ten years, you must be shrewd enough to realize that if you don’t have enough cash to pay for something, then you should not buy it because it is above your affordability line. Paying off your credit card every month will also ward off bankruptcy.

Money does not buy happiness, but financial freedom

If you think that money can buy happiness, think again. Ask a millionaire and perhaps he would tell you that being millionaire is not about being happy, but enjoying financial freedom, which is the peace of mind that comes from having no debt strings attached. So, you should focus on achieving financial freedom, rather than thinking of buying happiness with money.

Craft saving and investment plan

Only the few lucky millionaires have reached their goal without a proper saving and investment plan. Come up with a simple, but carefully crafted saving and investment plan. Set you milestones with a work plan and timeline to achieve. Keep your goal big and your objectives SMART (Specific, Measurable, Achievable, Realistic, and Time bound) because financial freedom and success demand broad vision.

Saving to save is not a good idea. Keep aside a modest amount and invest the rest in businesses you can manage along with your existing income source. Make the wise decision to invest in business you can understand enough and have necessary skills to manage.

Cut on utility bills

Your utility bills take a big chunk of your earning. Save money by cutting unnecessary utility costs, including electricity, gas, television, cable and telephone. These savings will gradually accumulate in to an amount enough to invest in a small business.

Sell unnecessary valuable items

Don’t keep unnecessary valuable items at home. Sell them and invest the proceedings in a business. Remember, unnecessary collections would not bring you wealth, but would become a burden that would keep your money trapped. Your money should keep growing, just like a snowball.

Create multiple incomes sources

Create multiple sources of income because keeping all your eggs in one basket comes with high risk. Take calculate risks and invest in multiple businesses. Again, you should have enough time to manage your investments and understand your business.

If you want to become a millionaire, start now. Taking the first step is often harder, but it’s worth it. These secrets will make you wealthy a decade’s time. Avoid people who would try to belittle your ambitions. It is not greed that is driving you to become a millionaire, but financial freedom.

Tagged in: personal finance
Beware of little expenses. A small leak will sink a great ship.


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Guest Monday, 27 May 2024