It is so important to know how much money is coming in & how much money is going out. You can organize your daily, weekly & monthly expenses based on that.
2. Save Money
Save at least 10% of what you earn. You should save at least 10% or more of your income each & every month. In the first few months saving 10% would not be a pleasant experience. You might have to cut down your some of the expenses. But once you get into the track you can easily save.
Saving money is not an easy task or skill to build. You might have to cut down on your favorite expenses. You might have to cancel Friday night parties, you might have to stop having lunch at restaurants, you might have to cancel your week-end trips, you might have to use public transport instead of your vehicle, you might have to cancel your Netflix subscription, you might have to stop buying new clothes for the next few months. This is what you have to pay for a better life in the future.
3. Pay Off Your Debt
Most people use debt to buy houses, vehicles, or home equipment. Sometimes you may have student loans. But you have to pay off your debt first & get rid of it to become wealthy. Debt can be disastrous once you are unable to pay your debt.
To pay your debt & interest you may have to find some extra income source. You can start working weekends, you can start an online business that requires very little capital to start.
4. Invest your Savings
Once you save some money, you can invest them wisely. The first & most important investment is investing in yourself. You can use your savings to buy books, short-term courses to learn about business, online business, investing, trading whatever field you want to master. You can buy the world’s greatest books for just a couple of dollars.
You can invest money in the stock market. The best place to invest your money as a retail investor is to invest in the stock market. The stock market is a place where you can buy some great companies like Apple, Amazon, Google, Facebook, Tesla, and Microsoft shares & after buying you own a small portion of the company. In this way, you can use your money to work for yourself and make money for yourself.
You can start your own online business. You can start a YouTube channel, you can start a blog, you can start online selling. You just need an internet connection, a smartphone & computer.
