When was the first time you had the thought of getting rich? For me, it was when I was very young, probably 8 years old. Glued to the TV watching cartoons, I wanted to live the life of Richy Rich. I really liked the idea of having so much money that you could literally swim in it. Anything you wanted, you could get instantly. Who wouldn't want that? Maybe you also envied Richy's life just like I did as a kid.
As kids, a lot of us have the desire to grow up and become rich, but then we grow up and find out that it's actually not that easy. Instead, it's extremely difficult to even make enough money to live a normal and average life. You have so many bills. You have to pay rent, you have to shop for food and pay for petrol. You have to first meet all your needs, but you also want to fulfill your desires. You want to travel, see the world. You want to buy exquisite items, go to fancy cafes and restaurants, have tasty food, and have a good time with your friends.
But with the ever-evolving economy’s growing separation between inflation and wages, it's not easy to keep up with our modern lifestyles. Still, there are some things we can do that would help us become financially healthy, if not fulfill our childhood dreams of being rich.
Here are some things you should be doing:
Make sensible and extensive use of your credit card. Credit is like taking a loan from your future self, which you will have to pay back. A lot of people treat credit as free money and spend without any second thoughts. This results in accumulating debt that adds a lot of financial stress. You should be borrowing credit only as much as the amount of money you already have in your Savings account right now, and can 100% spend within the next 1 month. Whatever expenses you have, pay them through your credit card, and set one date every month to pay off your credit card bill. This way, you will grow your credit score, and will also earn reward points, which can be extremely helpful for you down the line.
Also, if you get caught up in some fraudulent transactions, or if some business is trying to bully you financially, your credit card/bank can fight for you because it's their money that was spent. The company/bank would be more than willing to provide you services and assistance.
Save X% of your monthly income. This could be for any purpose. If you have any financial goal in your life, short term or long term, like going on a trip or buying a house down the line, you need to accumulate the wealth to do that. And you can do that by saving x% of your monthly income towards that financial goal. That X can vary depending on your goals, it can be 5% or 50%, and you would have to factor in your monthly expenses to figure out how much you can afford to save.
You can also create multiple “slots” of X, Y, Z for different financial goals. For example, you can save 5% every month towards your trip, 20% for buying a house, 20% for investing in stocks, or something else, 5% for emergency health needs.
You might also need to figure out if you need to change your lifestyle in any manner to cut down on certain regular monthly costs, like eating out or shopping. It depends on your financial goals and how important they are to you, relative to your present lifestyle.
These are just a couple of tips that you can make use of. If you find these helpful, we could share more in the future. Also if you have some tips, go ahead and share them with everyone on Rizzle.