Five Little Tricks to Becoming Rich
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So you want to become rich. Everyone has the potential to become rich in their lifetime. You simply have to take a few steps to attain your goals of being rich. Being rich is not all about how much money you make. It is about how much money you keep. There are many people who earn thousands of dollars every year, but are deeply in debt. They simply squander their money on things without thinking about saving for the future. In order to become rich and wealthy, you must learn how to keep a good percentage of the money that you earn.
Here are five little things that you can do now in order to start becoming rich.
1. Know How Much You Spend
Without knowing how much you spend, you will never know much you can really put aside to become rich. Find out exactly how much you spend on food, rent, bills, entertainment, and other expenses. Learn how to track your expenses and set a budget by visiting the budgeting section of the site.
2. Eliminate Fees
In order to save more and become rich, you must get rid of the fees. Start with your bank. If you are paying a monthly fee for your checking account, it is time to switch. There are many nationwide banks who offer free checking. If you have a credit card that charges an annual fee, once again, it is time to switch. You should not be paying the credit card companies annual fess in order to borrow their money. You already do that with the interest they charge you. If you credit card charges you an annual fee, call them and ask them to waive the fee. If that does not work, you should switch to credit card that does not charge an annual fee.
3. Let Your Money Earn Interest
If you currently have money saved up, make sure that it is earning interest. If you are going to save some money for a short term, make sure that your money is in a high yield savings account in CD account. Don't save money in your checking account. Your checking account does not accumulate interest, and if it does, it is only a pittance to what a high yield savings account earns. It only makes sense to have your money make money for you when it's just sitting there.
4. Don't Become Cheap
Yes, money is important. But it should not run your life. Every decision that you make should not be based on money alone. Don't become another Scrooge. Being cheap will only make everything hard because every decision that you make will be based on money. Learn to enjoy your money. Being rich does not mean being stingy or cheap, it simply means that you know how much to spend and when to give.
5. Think First
Before you do something with your money, think first. Find out what is the best move for you. What works for one person might not work the same for you. If you are going to invest in the stock market, don't simply buy a stock because your friend bought it or because some reporter on a financial TV show simply told you to buy. Make sure that you research before you make a long term investment. Be smart when managing your money. And remember, if it sounds too good to be true, it's probably not.
These are just 5 little things that you can keep in mind on your way to becoming rich. Remember, being rich is not about how much you make, it's about how much you keep. Learn to keep more of your money and before you know it, you'll be rich!
Posted by jonathan on January 25, 2006 at 12:07 PM