The catalyst to the writing of this article has been a friend, who having read my previous articles, and after a talk we had about the subject of money, she beseeched me to write something relative to that.
The most crucial problem regarding money lies in two situations. First of all, money are considered a taboo, and secondly, most of the people don’t know how to properly manage their financial.
Indeed, it is an intricate matter for which whole volumes have been written. While I could elaborate on it thoroughly, my purpose is to state it as simply as I can by presenting the strategy that I followed and managed to become financially independent from a very young age.
Here are 9 tips that I strongly advise you to apply:
1. Create a financial planning
Weird as it may sound to some that they could make more money by just making a plan for their finances, it is the first and most basic step.
Create a simple archive (excel is recommended) in which you will input all of the earnings and the expenses for the next year. Therefore, you will have a picture about where you spend your money on. What is more, by the end of the year you will have the necessary information to create a detailed planning for the next year.
2. Create a reserve account
Within your budget create one more expense ꟷ a reserve account. In other words, money which are collected in a separate bank account and are meant for investments.
You cannot touch that money for any reason except for investments that will bring you more money.
Start investing your money –the reserves– in foolproof solutions, after you consult someone who is an expert on the subject.
These solutions could be a bond or an international stock market product or property from which you will have income (not your own home). Set a goal to have an average annual payoff over 5%.
3. Do not create self-promotion expenditure
You don’t necessarily need a new car, or a bigger house. The ones spending more than they could or should, and who do not invest their money, will always get into financial trouble.
First you create the “machines” to produce money for you and then you have the ability to buy whatever you wish for. This is a distinctive attribute between the rich and the poor, using those terms in their broad sense. Indeed, the rich invest their money in order to make more, whereas the poor satisfy by priority ambitions that are relevant with material things or personal needs not of primary importance.
4. Decide that money are not bad
Many people have the view that money bring unhappiness. If you share such considerations, then you have obviously decided not to make money. Decide that it’s not bad at all to make lots of money. On the contrary, money can be the means to fulfill many of your goals, as well as to give you the power to help.
5. Become the best in doing what you love
Every person has a specific talent, but unfortunately some keep it as a hobby and never make a living out of it.
Discover your talent; many books can help you on that. In this way you increase the possibilities to become the best in what you’re doing. As a result, it won’t be late until money come your way.
6. Increase your trustability
The concept of money goes hand in hand with the concept of trust. The more you are trusted, the more money you will make.
Trust is gained by doing what you have promised or agreed upon doing. However, if possible, do even more than that. Only in that manner trust is built.
7. Boost your ethics level
Unfortunately, a number of people still believe that in order to make money you have to steal or engage in illegal activities. This is ultimately false.
Become the best you can be, help as many as you can without expecting anything in return, do not do anything that you wouldn’t like to be done to you. By operating in such a basis you earn the respect and the esteem of your fellow people, and then they respond to that.
8. Take risks
Without any risk, with the safety of the couch, nobody made enough money. Don’t be afraid to fail; take a look around you: most of the people who have financial freedom have at least once failed.
So take the risk and do not let anyone stop you. A saying that I was always applying and never let me down was that the one who dares, wins.
To conclude, money are not something unattainable. It is a fact that no school teaches such king of stuff and for this reason ignorance or confusion have flooded in the scene. Fortunately, some very successful people have described in their autobiographies how they made it. Personally, I read their stories, I copy anything that suits me, and I adapt it to my own situations.
I sincerely suggest that you do the same.
As Napoleon Hill mentions in his book Think and Grow Rich, “Remember: You can attain anything you wish for, as long as this doesn’t exceed the universal laws, the laws of God and the rights of your fellow people.”
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