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Useful steps for savings and investing wisely

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The first step to getting rich is being able to save! Depending on your capacity and even with $ 10 per month this is a choice, this article is brought to you by refermate.com an online platform that focus on providing coupon code to save money.

Saving is a state of mind

You might think that a sum as low as $ 10 a month is ridiculous, but there are three things to consider:

First, these small sums add up and you still end up saving $ 600 in 5 years or $ 1,200 in 10 years. This is enough to replace certain everyday objects which have a lifespan or an obsolescence (telephone, computer, household appliances) and which always break down at the worst moment, Murphy’s law obliges!

Second, be aware that being thrifty is a state of mind. If you don’t save even $ 10 a month, it’s not because you don’t have that money. This is because you are not making the conscious effort to put it aside. You will see that once you get into this habit it will be automatic and you will be able to save larger amounts of money.

Finally, there is a mechanism peculiar to human nature that when money is available, it often ends up being spent! Not necessarily badly spent or wasted, but spent anyway, and for things that we often could have done without.

The three types of savings you need to get rich

So here is the first thing to do to avoid this:

Set aside 10% of your monthly income in emergency savings,

Set aside 10% of your monthly income in long-term savings,

Set aside 10% to donate (associations, charities).

In other words, you must learn to live on 70% of your income.

The relief savings will help you in the event of a hard blow, the other will allow you to live later. The money for charity will allow you to make regular donations.

It is not so much the rate of return on the savings account that counts (from 2.5% to 5% to have risk-free support) but above all to start right away and continue regularly.

Pay yourself first, a key concept for getting rich

So pay yourself first when your monthly cash flow arrives. Help yourself first and then see what is left for your creditors. It’s a way of looking at things that will change your perspective on your budget and the way you are going to manage your money.

When it comes time to pay your rent, you don’t say to yourself this month I can’t pay the landlord because I have to give my cousin a present who is getting married”. You have built these kinds of items into your family budget and you adjust your spending to the money you have left after paying your creditors. If your laptop fails you in June, that’s no reason not to pay your taxes. You will be doing well with your smartphone until July. You just need to do the same with your savings so you don’t have an apology at the end of the month.

Over time and your situation improves, you can even live on 60% of your income, and devote 10% to building up savings to invest or to carry out a project that is important to you.

Don’t waste money

Again, it may seem easy, but think about it.

You’ve gone the extra mile to earn your money and the extra effort to be successful in saving. It would be a shame to make a bad investment now and lose money looking to get rich.

Invest to get rich yes, but not just any old fashion way

Don’t bloat. There is a difference between investing in the stock market and playing in the stock market. I see the stock market as a real pillar of investment. It can provide regular income and pays much better than a savings account. But you don’t choose which stocks to buy like you tick numbers on the lotto grid. Its not a profitable strategy (its not a strategy at all, even).

If you want to invest in the stock market to make the money you’ve set aside work, educate yourself and educate yourself first. There are plenty of approaches, more or less risky and more or less time-consuming. The idea here is precisely not to take ill-considered risks. Don’t bet your money, it’s so easy to lose it. Stick to areas where you have control and go for solid, profitable techniques.

From television to the internet platform, Greg switched his journey in digital media with California Herald. After serving as a journalist for popular news channels he currently contributes his experience for California Herald by writing latest and trending Politics news.

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