1. Spend less than you earn. This is often the most overlooked scenario, because many people believe it's a matter of cutting back on your current standard of living -- a strategy that's almost impossible for most people.
2. Make your money work as hard as you do. The real secret of financial success lies in making your money do the work, so you can relax. But that requires accumulating enough investment dollars so that the growth and earnings can free you from the need to punch a time clock.
3. Make sure your money is working for you, instead of against you. Just as your money can work very powerfully for you if you make the right decisions and stick to a plan of regular investing, wrong money decisions put potholes on the road to success. The classic example is credit-card debt.
4. Remember: If you don't see it, you won't spend it! If you take a close look at your paycheck, you'll notice a lot of deductions before you get to the amount you can cash or put in the bank. Money set aside for wealth building should be treated in the same way.
If you don't have a chance for automatic deductions to a company savings plan, then you'll have to create your own automatic savings plan.
5. Create savings and investment goals. Set your own goals. But never set a goal you can't control. Your targets can't depend on your boss giving you a raise; they must be reachable by your own efforts. You might need to invest in yourself by acquiring more education so you can qualify for a job that pays more. You might need to take more risk in your investments, or in your lifestyle by taking on a job that pays commissions instead of a fixed salary.
Gr 8 moela tip$
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