Hello readers, here are our financial tips for this week:
Live below your means: I used to eat cheap Ramen and Tuna fish to invest the saved money in my business. Now, I have a six-figure business. You must deprive yourself of money early, so you can invest your way to wealth.
Build a machine: An average millionaire has 7-income streams. You can’t become wealthy by your job or business alone. You need to create systems of passive income where you invest $10k in ads and get $100k back.
Good debt vs Bad debt: Good debt is debt that you take on to make more money or achieve meaningful growth in your personal life or finances, like a mortgage or student loan. Bad debt is relatively expensive debt and debt that someone takes on for unnecessary expenses, like credit card debt or high-interest loans.
For instance, if you buy a property on debt and have the rental income higher than your loan payments, that’s a good debt.
Try as much as possible to build more good debts than bad debts.
Save 10% every month: People who don’t have money saved are one disaster away from a debt spiral. They can lose their job or get an accidental medical bill and resort to high-interest debt. Don’t be those people.
Invest money in your self-improvement: People think they are smart to not buy a (valid) course but it’s the dumbest decision. The only place where you must spend freely is self-improvement. Because without it, your income won’t increase.
Planned purchases: You can buy yourself nice things but the real enemy is impulse purchases. You order it only to find out you don’t need it that much. That’s why when you want something, the more planned the better.
Be friends with savings: Don’t throw your money away with people who spend at expensive restaurants or on useless wants.
You need to have friends who have the same economic-values as you do. Remember, when poor people make fun of your money choices, you are on your way to wealth.
Click here to learn the 8 steps to ensure that you spend less than you earn.
Don’t forget to check out for more financial tips next week. If you have any suggestion or question, don’t hesitate to use the comment box below.
