Money advice priceless tips. Discussed 19 wise money tips to make you rich. But with ironclad willpower. Napoleon Hill wrote: “to become rich consists of doing.” Thus, get the wisdom here and act on it. You will become rich.
1. Money advice – Live below your means
You have heard it. To improve your financial ability spend less than you earn. In other words – live below your means. Spend 70% of your earnings save or invest the balance. Baby – It’s that simple!
How do you live below your means?
a) Budgeting to become rich:
Create a budget and follow it. Without a budget, you can never become rich. Because you have no control over your spending. You like a homeless dog walking aimless, no direction and no purpose in life.
You need to create a plan for your money. Account for every dollar that you have earned. Have you ever heard of the 50/30/20 budget rule?
* Needs get 50% of your income
* Wants get 30% of your monthly income
* Savings get 20% of your monthly income
That is the common budgetary allocation of average people. You don’t want to be average. Do you? If you want to become rich you need to save 50% of your monthly income. That’s what financial shrewd guys do.
b) Automated savings
Have your savings deducted from your paycheck before you touch the money. This way you won’t have the temptation to use the money.
c) Create extra income channels
You shouldn’t depend on one income stream. Two or more are better for a guy who wants to become rich. There many ways of making extra income. You need to be creative.
2. Money advice – Money is only a tool
Money is no different from a car, spoon, or any other tool. We use tools to simplify and complete a certain task. Treat money as a tool and you will achieve a lot of success with it. The money will do whatever you want it to do without complaining. Money is liquid and thus likes to move. It will take you anywhere and everywhere. You need to drive money and never allow money to drive you.
• * “Never lose your money” not under any circumstance
• * Never forget the rule of money
The best thing you can do is make your savings work for you. Thus don’t put your savings in an ordinary savings account. Put your money in accounts that make money for you. You invest instead of saving in a bank account.
Some of these accounts (found in Insurance companies investment portfolio) are;
* Money market fund
* Equity fund
* Balanced fund
In Kenya Britam, Old Mutual, CIC, etc, are good examples.
3. Self-improvement – invest in yourself
The most important thing you can do for yourself is to improve your standards. If you want to become rich invest in the following areas;
• Education to fit in with your peers and community expectations
• * Health – to be able to tackle tasks ahead
• Physical appearance – to look good, sharp and respectable
• Knowledge – to become wise and knowledgeable
• Career – to improve your marketable skills
• Future – save and invest some of your money
• Relationships – you need family and friends support to thrive
4. Money advise – Stop buying the stuff you don’t need
Know how to manage your money. Spend your money on value. Don’t buy stuff for the seek of feeling good. Stuff you buy should improve your financial well-being in the long run. Invest in an asset and avoid liabilities. Long-lasting items tend to have value due to their long-term usage capabilities.
5. Money advice – Don’t loan money to family and friends
The best financial practices dictate that “never lend money to family or friends.” Because the cost of this action is very high. You lose both in the end.
6. Money Advice: Create and rely on more than one income source
Build many income streams because it’s a bad idea to rely on one source.
You need to own things that bring money in but not taking your money away… 7 is the recommended number of income streams one must-have.
7. Money advice – Create a budget
To become rich you need to create a budget to help manage your money. A budget is a financial plan that enables you to control your money. Without a budget, your money will control you.
8. Avoid high-interest debt – bad debt
Don’t take bad loans. Bad loans have high-interest rates. Instead of helping you grow, bad loans drug you down. Credit card debt is an example of a bad loan. Don’t use bad debt.
9. Save and compound your savings
Save money to help get rich. Building a financial empire begins at your money-saving prowess. Save and don’t get your interest earnings out. Compounding your earned interest is the name of the money game.
10. Buy and keep it
Buy valuable assets with an intention to keep for a long time (or many years.) Buy and hold is a good strategy. Things you can buy to hold for long include;
• real estate
11. Learn how to raise money
Learn how to raise money and people will come for help and advice. People need money for projects but they don’t know how to raise project money. You can Charge consultation and finder fees. Ask to become part of the project.
12. Start a small business
People who become billionaires start small-time businesses. They grew their business to corporate giants over the years. You need to start your own business to become rich.
13. Discover hidden investors – undiscovered investors
Come up with a great investment idea. You have no money to invest but your idea is solid, marketable and profitable. Make a list of people who have money. Talk to them and convince them to invest in your idea. People who become billionaires used other people’s money to thrive.
14. Know yourself – self-awareness
• Knowing and respecting your strengths and weaknesses
• Knowing your passions
• Knowing your fears
• Knowing your desires and dreams
• Knowing your thoughts
• Knowing your likes and dislikes
• Knowing your tolerances
• Knowing your limitations
Use this knowledge to make money the easiest way you can design.
15. Give and share your money
To find sweet fulfillment in life you need to show love to others. The best way to achieve this goal is to give and share your money with others. Give and it will come back with interest. Share and you will receive blessings.
16. See yourself as a company
You need to use your money like a profit-making minded company. Treat yourself like a corporate entity that must report profits every year. You are the owner and managing director of this company. How much profit do you want to report at the end of the year? Only you can determine this.
17. Pursue value in everything you do
Everything you do must be value-centered;
• Thing value when you buy
• Think value when you learn
• Think value in your relationships
• Think value when investing
• Think value in your business dealings
• What value are your customers receiving from your service?
• Provide value to those around
• Become valuable and irresistible
Pursue value and you will become rich. People who become rich know the importance of value. People pay for value.
18. Change your mindset about money
Money is good. It can earn you many very good things. Don’t worry about money. Never say that you can’t afford this or that. Your view about buying power should be, “how can I afford this,” and never, I can’t afford this. You can afford anything in this life as long as you want it bad.
19. Value time over money
Time is the most important item in your life. Without time you can’t do anything. The time utilized well will make more money than you can imagine. Money has no value if you have no time to use or make it work for you.
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