Are you looking to stop living paycheck to paycheck? The steps you take today, could have a huge impact on your financial future. You’re not going to get rich by accident. You have to work at it. Unless you win the lottery you’re also not going to get rich overnight. It’s going to take time.
So here are 5 easy steps you can take to making sure you’ll be rich in the future. Remember it’s up to you:
Invest your money, don’t save it
Those in the know, invest their money. The problem with Saving is inflation. Every year, your money is worth a little bit less (around 2-3%). This is known as inflation. Savings bank accounts either pay no interest or very little. They definitely don’t pay more than 3%. This means that you’re actually losing money every year you keep it there.
This is just basic maths, but most people still fall into this trap. The smart people invest their money. Their first goal is to beat inflation. This is pretty easy to do. And their next goal is to grow their net worth.
The easiest way to invest is to buy into a diversified portfolio. An app like Acorns will do this automatically for you. And it’ll make sure you keep investing at regular periods. Millionaires invest – poor people save!
Trading is how I make most of my money. It’s not for everyone – but I believe that most people can learn the basics, and with practice make profits. Make no mistake, trading is hard. There is a big learning curve and requires lots of practice.
But if you do manage to learn trading then you’ll be able to generate income anywhere in the world and you won’t need to rely on someone else to sign your paycheck. It’s one of those jobs that doesn’t rely on anyone else. It’s all on you!
I started to learn about trading through something called Copy Trading. It’s good for beginners. When you start out with any type of trading, don’t risk real money. You can practice trade for free.
Live below your means
If you can’t save money with a low salary, you won’t be able to do it with a high salary. This sounds ridiculous but it’s completely true. You need to learn how to optimize your expenses. If you get your expenses under control now, as your wealth grows, it will continue growing at an exponential rate.
Get into a frugal mindset. Be mindful about how much you spend each day. Each month try and reduce your expenses by switching to cheaper alternatives and cutting out expenses you rarely use. If you’re willing to put in the hard yards now, it’ll make things so much easier later on down the track.
Start a side hustle
One of the biggest mistakes you can make in life is only having one source of income. Too many people find themselves employed one day and without anything the next. And none of them saw it coming! The best place to start is with a side hustle. It could be something as simple as starting a money making blog, delivering food for a delivery app, trading stocks etc etc. The extra money will be useful, but the peace of mind as your side hustle grows will be invaluable.
Buy some Bitcoin
I don’t know if the price of bitcoin is going to hit $100k, but it’s one of those rare investments that has a huge upside potential. By investing a small amount now, you could become much richer later on. Can you afford to lose 1% of your net worth? If so, why not put it into Bitcoin or a similar cryptocurrency. It could pay off big time.