Effective Money Strategies
Are you reaching your financial goals? Do you even have financial goals? Regardless of your current financial situation, there are several money strategies to use that can make you rich. There are no guarantees in life, but you can greatly increase the odds in your favor. Intelligent decisions, great ideas, and consistent behavior are all you need.
“All riches have their origin in mind. Wealth is in ideas — not money.” — Robert Collier
Money Strategies That Create Wealth
- Have multiple streams of income. One of the most important aspects of becoming wealthy is the avoidance of financial disasters, such as losing a job. It can take years to replace the savings you might spend in just a couple of months. The more income sources you have, the more financial security you’ll enjoy. You’ll also earn more.
- Live within your means. No one can outspend their income indefinitely. If they do, bankruptcy is the typical result. Regardless of your income, spend less than you earn.
- “It’s not how much money you make, but how much money you keep, how hard it works for you, and how many generations you keep it for.” — Robert Kiyosaki
- Invest in yourself. We’re not talking about purchasing a sports car. Spend money on education and self-improvement. Develop your talents and learn valuable skills. Money spent wisely on self-education and enhancement can provide greater returns than any stock you could ever own.
- “The more you learn, the more you earn.” ― Frank Clark
“An investment in knowledge pays the best dividends.” — Benjamin Franklin
- Set and pursue financial goals. While a few people luck their way into wealth, setting goals is a more reliable plan. Do something to pursue that goal every day. And measure your results regularly.
- Accept responsibility for your financial future. It’s your responsibility to create your own prosperity. After all, no one else is going to do it for you.
- Be patient. Wealth takes time and patience unless you can secure a very high income. You don’t have to do anything spectacular to amass a large fortune, but it won’t happen overnight. Keep your eye on the long-term outcome and be patient.
- Invest consistently. If you’re not saving a portion of your paycheck each month and investing it as well as you can, you’re limiting your ability to build wealth. Build to the point where you save at least 15% of your take-home pay. Learn about investing so that you know how to use those funds wisely.
“Wealth is largely the result of habit.” — John Jacob Astor
- Consider taxes. Taxes have a measurable effect. Whether you’re purchasing a home or thinking about selling a stock, taxes matter. Make investment decisions with an understanding of the tax implications. Make full use of tax-deferred retirement accounts, too.
- Focus on needs and let go of wants. Before making any purchase, ask yourself if you need the item or service. How many purchases have you regretted in the past? Do you really need the latest 4K OLED TV or your own high-end espresso machine? Try to limit your spending to what you need and invest the rest.
- My wealth-building mantra is “admire – don’t acquire”.
- Know when to stay and when to go. Nothing lasts forever. There is a time to exit a job, an investment, or a business. Remaining too long with any of these things will cost you financially sooner or later.
“Money is only a tool. It will take you wherever you wish, but it will not replace you as the driver.” — Ayn Rand
Financially successful people have left many clues for you to follow. Adopting certain behaviors will all but guarantee financial abundance. Choose a few of these strategies and begin applying them to your life. Continue this personal transformation and be persistent and consistent. Building a fortune takes time – get started today.