Having money troubles? Been there! Finding it difficult to grow your money? Now, that’s a tricky one. The truth is, life is filled with all sorts of needs and wants.
A gazillion times, we spend all of our money before it even gets in our hands, making it difficult and nearly impossible to grow our earnings. Sometimes, you’re even able to save reasonably, but just about then, you’re hit with an emergency that crashes all of your year’s savings. What then do you do? How do you grow and maintain your financial life? Continue reading to find out!
- Read books written by experts
This is usually the best place to start from. If you have no clue as to what to do to grow your finances, start by reading books written by experts in the field. Several books exist around the topic of getting past debt, taking control of your finances as well as building your investment portfolio. You can save costs by borrowing books from your local library or simply downloading them online.
2. Refuse to be a debtor
Debts will only ruin you! Yeah, you read that right. This is one of the biggest mistakes many of us make today. Some even go as far as accumulating more debts to offset previous ones. I’ll be candid with you- if you have any plans to change what your financial picture looks like in the near future, do all you can to pay off your debts ASAP, and don’t go acquiring more debts. If possible, go on and list all your current debts and work out what the minimum amount repayable should be. Following this, create a debt payment plan that will enable you to pay off the debt as quickly as you can. Going forward, ensure that you take on sound spending habits to avoid running into more debts.
3. Begin early
You won’t become a millionaire overnight. It will take some time to grow your wealth into something substantial. For this reason, I’ll advise that you begin growing your finances as early as you can. This will provide you sufficient time to get to your goals. The sooner you begin making investments, the greater your chances of cashing out big. Consider how much more you’d have if you began investing and saving at 25, rather than 35. Whatever your retirement goals are, you’re much closer to achieving them if you begin early rather than late. This doesn’t suggest that it’s too late for anyone older than 25. Even if you’re starting at 50, it’s better late than never.
4. Be smart about your investments
You must have heard about investment opportunities that offer you double your investment in a couple of months or some ridiculous form of ROI. When you see things like these, run! More often than not, they turn out to be highly unsustainable investment platforms that would crash and crash along with every bit of your money. Put your brain to work before taking on an investment opportunity. If you do not understand an investment, let it go. Don’t go borrowing just to invest, and most importantly, do not invest more than you can put at stake. If you can’t deal with the fluctuations of the stock market, simply invest in conservative modes of investment.
5. Learn to take risks
Without taking risks, you’ll remain in the very same spot. If you plan on growing your money, you have to set your fears aside and start investing in profitable ventures. In fact, failing to take risks is a risk in itself, cos this simple action could cost you everything you’ve ever owned. Saving and investing are two different things. One thing that can happen to those who choose to save rather than invest is that the economy might pull a fast one on them, inflation might occur and they’ll lose the value of their money. While investing on the other hand comes with risks, consistently investing and spreading your money in the fitting percentages across different asset classes will help make the most of your gains and limit your losses. So, understand and work with the mindset that it is important that you take the necessary risks to grow and secure your money, and your future as well.