8 Financial Steps in building wealth
Growing financially is the desire of every living being but few are able to reach this objective. In building wealth, there are key financial steps that one must follow. This means there must be some sacrifices that one must do to achieve the ultimate aim.
Financial growth does not just happen over night through prayers but through an action and a will to achieve financial breakthrough. In order to achieve this aim, the below eight steps could help in building wealth beyond measure.
1. Desire For Change
In order to become rich you must have that desire to change your current situation. One needs to develop self confidence to achieve financial breakthrough. A study by BBVA research found that confidence affects financial behaviour and success. To build a stable financial status, you need to develop confidence and have that desire to change your financial status. Focus on your ability and what you can monetise from your skills.
Back your desire by saving. Put aside some of the money you make. If it is a salary pay yourself first for personal savings to have something for investment. This will help you to build up a nest to secure your future while creating a safety net for a financial crisis. By saving now, you can have a stress free life without struggling in the future. Having enough funds eliminates almost half of the problems that one can encounter lifelong.
3. Budget your income
Budgeting is very important. If you fail to budget your money it will take a toll on your future. It would help if you don’t spend BEFORE saving; instead, you only spend AFTER saving. Adopt a 50-30-20 rule in order to budget your income.
You have to spend 50 per cent of your salary on important things like rent, electricity, food, taxes among others. 30 per cent should be used for something you want to buy while the 20 per cent should go into savings. It is important to allocate first the 20per cent then spend only what is left after saving.
4. Start to invest
Saving 20 per cent of your income means you can now make any investment you want. This could help increase your finances to secure your future. It could be bank investment or business investment which you could make profit from to secure your future needs. Investment is key in financial breakthrough so all energies and efforts should be geared towards investment.
5. Control your spending
You must have self control over your spending to adjust to things. In doing this, you put off what you want now to perhaps something else. For example, if one can put off switching to a new phone that costs $1,500 and may be utilised the money to start on an index fund with a minimum investment of only $1,000, this can eventually make the money grow.
6. Lessen your monthly expenses
Try to cut down your monthly expenses. Try to figure out the expenses which can be cut out to save money. There are lots who are subscribed to some podcasts which might not be necessary. It is important to cancel some subscriptions and also moderately use some electrical gadgets to save monthly electrical expenses. This can help you to save a lot.
7. Find alternative job
In this 21st century, one cannot stick to just a job and to hope that he or she will make it. You have to schedule your time to find a side job that can help you to make extra money to back your income. Making extra money is essential to help in saving and in investment. Make sure to find something extra that can fit your time.
8. Change your mindset
Money stays in the hands of those who have a money mindset. Set the financial tone in your mind, develop a financial attitude and have that zeal to make financial progress. This zeal and mindset will help you to sail through even in hardship to make the money to enrich yourself.
These when followed can help change your financial status to make you grow rich within the blink of an eye.