I randomly write any topic about health here which I find interesting and informative. Wealth topic is also published here so that you will get some ideas on how to earn money too. Health and Money Awareness are my objectives in writing in this blog.

How to Accumulate Wealth Regardless Of Income

How to accumulate Wealth

Do you know where your money is going? You are not alone. A lot of people don’t know where their money is going. They live from paycheck to paycheck. You should know how to accumulate wealth regardless of income.

The best thing to do is to learn about financial matters. We have the word cash flow which means the movement of money from and out of your pocket. The earlier to learn is much better. But even if you are in your 40’s it is still okay than never. Here are three simple steps to learn how to manage your income and accumulate wealth slowly and become rich soon.

1. Identify the in and out of your money. It is called the cash flow wherein you will know what the sources of your income are and how you spent it. You must have an outline or list of your income and the list of your expenses. You should have a list of what you buy and so on. Remember to save 10% of your gross income and invest it in anything where it grows more than the rate of inflation. It might be in a mutual fund or business. As the accumulation or saving is enough you need to invest them in a property like real estate. But you might ask me how to save at least 10% when the salary is not enough. Well, my answer is it’s up to you. It depends on your lifestyle but if you have a simple lifestyle do not change it. You must tighten your belt to achieve it. Focus on creating wealth. Accumulating wealth is a must if you want to retire young and rich.

2. After you identify the problem on what makes you spend too much and what it is then you have to stop it once and for all. If it is drinking coffee in the shop or smoking too much then you have to stop it or moderate what you are spending. If you compute these small expenses daily, it will result in big amount. Eating outside must be minimized. These habits are called latte factor and it must be stopped. Simplify your lifestyle and buy things which are durable and useful. Comparing yourself to others can affect your future financially.

3. Lastly, the best thing to do is to monitor your money or wealth even if it is small. You have to manage it. If you can not manage small amount how much more if it millions. You have to do this every three months. Best of all, have a target. Aim very high.
• To gain financially you must start saving and investing as early as much as possible.
• Cut all big expenses. Don’t buy if you don’t need it. Wants are different from needs.
• Identify the assets from liabilities. Don’t buy liabilities like cell phone, cars or anything if you don’t need them badly.

If you follow these simple guidelines then I am sure you will finish rich. By the way as your income increases you have to pay yourself 10% first. Please share this to your friends and relatives. I hope you will accumulate wealth for your future.

1 reaction:

Lestat said...

very well said my friend..
... thanks for sharing this nutritious wealth tidbits..

best way to practice is keep on saving... saving.. and saving...

:) have a nice day

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