Whether you are doing good, doing okay, or not doing well with your finances today, you should always put in mind that no one becomes a millionaire overnight. Much of your financial state is a product of how much you earn, how much you spend, and how determined you are to succeed. If you read about famous personalities like Oprah Winfrey and Walt Disney, you will find that they were not born with a silver spoon in their mouths. They had to go through a lot of hardship before attaining their millionaire status. Even if you are at your lowest today, you can choose to rise from it and be financially free. Here are important steps to achieving financial success:
Step 1: Know Where You Stand Today
Knowing your current state of finances, your future income stream, and your necessities will allow you to better understand how you will achieve your financial success. Everyone dreams of having luxury cars, huge mansions, and expensive accessories, but if you don’t know how you will be able to afford them, those will stay dreams.
Step 2: List Them Down on File
On a piece of paper or Excel file, start with your salary or income stream from any business you have. Then, list down all the necessary expenses you have for daily necessities like food, shelter, water, and transportation. Next, list down all the unnecessary items you may be regularly purchasing like makeup, bags and shoes, dinners out, etc. This will allow you to see how much allowance you have for saving and investing your excess money.
Step 3: Re-Evaluate your Current Spending
If you notice that a huge chunk of your money is spent on things you don’t need like bags and shoes, contemplate if you can get rid of that spending habit. There are so many ways to grow your money in investment outlets that help you accumulate interest income rather than a depreciating leather material. Spend only if you really need to. If you frequently dine out with friends or your lover, try and see how you can minimize spending while still being able to socialize. Maybe you can try cooking a nice warm meal at home and invite them over.
Step 4: Make Financial Goals and Stick to them
Goals are just goals until you work on them. List down the ways you think will allow you to save money and accumulate wealth. In this step, you need to strongly think about where you want your finances to be in the years to come. If you are getting married soon or are looking to get a house, then now is definitely the time to start saving! The years may go by without you noticing and you still don’t have anything left for emergency funds or retirement funds. Try to think about your good future by sacrificing on some things today.
Step 5: Always Look for Ways to Grow your Money
As they say, money doesn’t grow on trees—you work for it! If you have a little money in your bank account, try to put it in a Time Deposit account where you will be penalized if you withdraw the money earlier than the maturity date. This incentivizes you to keep the money there rather than spend it on things you don’t need. If you have a substantial amount saved already, you can talk to some investment houses or make your own business so that your money gains more than Time Deposit rates.
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