1. Pay Yourself First
Some of your hard-earned income should go to your local shopping store, or barber first. Make the decision that you are going to take control of your finances.
You should allocate some of your income to learning first. To learn more about your job, and business, to gain new knowledge about your industry. You can buy some books that are written by industry experts.
If you want to learn about personal finance you can read Rich Dad Poor Dad, if you want to master stock market investing you can read The Intelligent Investor, if you want to build a strong mindset you can read Think & Grow Rich.
2. Create an Emergency Fund
Today the world is full of uncertainties. In 2020 no one expects the Covid pandemic, lockdown, or an economic crash.
In the last couple of years, some countries experienced wars, environmental issues, social unrest, etc. No matter what the situation is right now we always must prepare for a worst-case scenario. For that, you have to keep 6-12 months of expenses.
You must be ready to face any economic situation. Even in a bad environment then you can survive.
3. Invest your Savings
Once you create an emergency fund you should try to invest your savings wisely.
You can invest your money in different asset classes. You can buy stocks, treasury bills, bonds, gold, cryptocurrency, lands, etc. No matter what the asset class your investment should beat the inflation in the long run.
The best way to beat inflation is to invest in the S&P 500 index. Even a lot of fund managers with a lot of technology weren’t able to beat the index in the long run.
The only thing you have to do is just allocate some of your monthly savings to the S&P 500 index fund & keep the investment process for the next 30-40 years.
I guarantee that you can retire very comfortably if you do this constantly.
4. Start Your Own Business
With the advancement of the internet starting a business while you have a job is very easy today. The only thing you need to have is the knowledge & the commitment.
You can start a YouTube channel & share your ideas with your audience. You can start a blog & write blog posts. You can start selling items online. You can sell your knowledge online.
With these things, you can generate some extra income & with time someday you can quit your job & live on the income you generate from online things.