Looking to get rich? While making money requires hard work, you might be surprised to discover that even the average Joe across the street can achieve financial success without needing to be the CEO of some Fortune 500 company. They understand that it isn’t just about making money, but about managing it well. The problem is that when you’ve got money in the bank – especially more money than you’ve ever had before – there is a temptation to want to spend it, and unfortunately this often leads to spending beyond your means. In order to avoid this, it is important to strike the right balance. In other words, enjoy your money while making sure to spend it wisely. Here are some important tips that financially stable people utilize so that they are able to continue to build wealth and ensure that the money lasts.
10. Pay the bills first
Your monthly expenses such as rent, utilities, and water have to be paid no matter what, so make sure to stay on top of them before you spend money on anything else. Personally, I have automatic payments set up so that I never risk defaulting on my bills.
2. Create a budget
This might seem like an obvious suggestion, and yet so few people actually have the discipline to make a budget and stick to it. But if you do, you’ll see that it works wonders. As a rule, you should aim to spend 50% of your salary on essentials, 30% on fun and leisure, and the remaining 20% should be stored away.
3. Look Out For Sales, But With a Major Caveat…
Back in the 1990s (a very silly time indeed) people used to buy fat-free fudge cookies and eat the entire package because, hey, they don’t contain any fat! What got lost was the fact that they ended up consuming more calories which in turn caused them to gain more weight than they would have by eating normal fudge cookies. This analogy also works with things that are on sale. People might be saving money on particular items, but they’ll buy a lot of things – especially things they don’t need – and as a result will end up spending more than they had planned. So the real strategy is to buy things that are on sale, but follow a strict shopping list.
4. Utilize “No Spending” Days
Choose a couple days a week in which you don’t spend money on anything other than the basics. By consciously controlling your unnecessary spending, you will develop better habits that will lead to more savings.