First of all, wealth differs from wealth in that a wealthy person has enough of the resources that he has. This is maintaining the required standard of living for yourself and your family, and the ability to stay afloat in all kinds of crises - federal or personal. In other words, you don't have to buy football clubs and spend months on vacation on your own yacht to be wealthy.
Consistency is not a matter of the moment. It will take years to build up a sufficient financial cushion to stay on our feet economically. Unwillingness to radically change the attitude towards personal savings and family accounting is a path to failure on the path to becoming a wealthy person.
Where to begin?
Very often people who have a large number of loans and other debts like to repeat: "If I pay off the loan, then I will start saving savings." This approach is wrong. Many will be surprised to learn that quite wealthy people also have a mortgage, and a good share of the income goes to repay it.
The path to wealth begins with the understanding that, first of all, money should be paid to oneself. Receiving a salary, first of all, you need to replenish your savings, and secondly - loans, regular payments for utilities, payment for education for children and food.
There is a universal formula for a wealthy person. It consists in the following - if 25% of the total monthly income can be safely set aside for savings for the quality of life, then such a regime leads to solvency.
In practice, not everyone can come to such a formula. Often the volume of monthly payments eats up all income, including credit card limits.
To understand exactly the nature of expenses, you need to record all the expenses of the family for a month, tracking unnecessary expenses with manic precision. Maybe the cake on Friday was too much, and instead of three trips to the cinema, you can limit yourself to one.
A similar approach applies to larger items of expenditure. For example, an expensive car with high fuel consumption can be replaced by an economy class car. The path to wealth lies through the realization that you need to be wealthy, not seem.
Increased income
If, even after reducing expenses, 25% is not collected for replenishing a personal deposit, you should think about increasing your monthly income. There are several ways:
- find a better paying job;
- open a deposit, buy mutual funds - in other words, find an investment way to increase income;
- leave your job and go into business, this method of increasing profits, of course, has a high degree of risk, therefore, requires a particularly careful analysis;
- find a part-time job.
