Instead of “tightening their belts” with petty spending, financial experts point out ways to become rich.
Personal finance expert Ramit Sethi says spending less than $ 2 or $ 10 doesn’t get you rich. He suggests important headlines that, if done, you will almost never have to worry about these small expenses.
Automate cash flow
Sethi, like many financial experts, encourages the maximum automation of cash flow. “Automatic deduction of monthly accounts for planned payments such as retirement savings. You learn to live without that amount of money,” he said.
For the rest of your account, you should set up automatic transfer to pay your credit card bills, monthly expenses that can’t be spent with credit cards, and other savings and investments. Amount left to spend.
Agreement on higher salary
Besides cutting spending to an uncomfortable standard, think about improving your income by boldly proposing a pay rise or finding new jobs.
If proposing a pay raise with your boss, prepare three to six months before the annual or quarterly review. Communicate your expectations with your boss, set the goals you need and work hard to achieve it. Sethi also suggested that you prepare a “record” of evidence to support wage increases and negotiations.
He said that the increase in salary proves the value of your contribution to the company. If the company doesn’t offer growth potential, it’s probably time for you to think about finding a new job to increase your income.
Continue to invest
“If you are afraid of investing, it will be difficult to get rich,” said the financial expert.
“When you’re worried about losing money, you’re losing money,” Sethi said. You do not need professional knowledge about stocks or investment markets. When you have paid off your debt and saved up for short-term goals, put your money in brokerage accounts.
Set up savings accounts for specific goals
In addition to regular savings, extra payments are available for specific payment purposes. Whether it’s saving for a wedding, a vacation or a parenting plan … creating separate accounts will keep you motivated and keep track of the process.
Actively repay the debt
The expert also mentioned that it is important to have an automatic repayment and payment plan.
If you have a lot of high-interest loans or loans, try one of these two options: prioritize paying small debts to help you feel relieved, better, or pay the debt with interest. high ahead.
The key is do not spend more than 5 minutes to decide. Just choose a method and implement it.