How to manage your money to become rich? | Money management tips | Save 70% of Income
Last year, 63 percent of Americans were living paycheck to paycheck; this includes not only low-income workers, but also people earning more than $100,000 per year; 18 of those people were still living paycheck to paycheck. Now, some of those are probably the result of bad money habits; but unfortunately, many of us are broke because of circumstances beyond our control.
In my case, it was because both of my parents died long before I graduated college, despite my working multiple minimum wage jobs from the time I was in high school.
From the age of 16 to 17, I graduated with a master’s degree in speech language pathology and a debt of $25,000; not to mention that I graduated during the Great Recession, with no job offers and no one to turn to for assistance. So what did I do? Marry a very wealthy husband, of course. Just kidding, my husband grew up in rural China in extreme poverty.
Because their house only had two rooms, all seven of his family members slept in one bedroom. They grew up in poverty that most people in the United States can’t even imagine.
I have any minimalist budgeting tips that I can share with you and oh boy do I so today I’m going to share with you my top 10 tips for budgeting like a minimalist these are the real actionable steps that took myself and my husband to being able to save 50 to 70 percent of our income every single year to paying off 250 000 worth of debt; including home, both cars, student loans, and so on.
Pay for our wedding and honeymoon with our own money, with no help from our parents, and then follow our dream of moving to Europe and buying a home there, with the ability to furnish our new home with our dream kitchen and beautiful furniture.
And let me you that we paid all cash zero debt and I’m not telling you our story to brag or to show off in any way but rather I’m sharing it in the hopes that you can understand and believe if we could dig ourselves out of poverty and debt and make our dreams a reality. Keep continuing reading all the way until the end because every single tip is even better than the last all right let’s get into my top 10 minimalist budgeting tips
Embrace your weirdness : Money management tips
We have a consumeristic society; that is constantly feeding us messages that we need to be buying the newest and the latest things to feel like we are happy and successful; we’ve internalized these messages about consumerism and spending so much that if you get serious about saving money you might find that you freak the people around you out they might think that you’re too weird too cheap too careful.
Any number of complaints example once I was at the playground with my kids and I was talking with some of the moms while our children played they were from the local school and I knew the moms only vaguely but we’d spoken a couple times and one of the mothers brought up the fact; that she had a big party coming up and she wanted to buy a fancy new dress for the party.
She asked did we have any recommendations for places that she could shop, a lot of the other mothers chimed in and mentioned expensive local stores but I personally love thrift shopping and I mentioned to her that if she didn’t mind taking some time to hunt around a little bit; she could find some absolutely beautiful brand name designer dresses sometimes even with the tags still on those moms looked at me like I had sprouted two heads and the one who asked for the referral actually rolled her eyes at me okay; I guess you don’t like getting 500 dresses for nine dollars they never spoke to me at the park again.
After that my point is you might get pushback from some of the people around you and I’m not just talking random people at the park I mean even your friends and family might think that you’re being too frugal, too cheap to whatever stick to your beliefs and remember what you’re working towards.
Write down your financial goals : Money management tips
What are you trying to achieve with your budgeting and or minimalist lifestyle there’s all sorts of minimalists and just because you’re a minimalist doesn’t mean you’re frugal or vice versa or maybe you’re frugal in one area. But you don’t mind spending money for something else. Take for example Steve jobs who famously considered himself a minimalist wore the same outfit every single day; and at one point had almost no furniture in his home yet.
He also lived in a 14 000 square foot mansion so which is which extreme frugality is all about cutting expenses as much as possible, so that you’re saving as much money as you possibly can on the other hand when you apply minimalism to your finances I think it makes a little bit more personal and fun while you’re focused on the expenses to cut down.
For sure and spending less you’re also directing your time and energy towards creating more time and space for the things that you value in your life I would say that financial minimalists also have a very positive relationship with money. I never look at my life in terms of what I am lacking and I’m not trying to accumulating wealth.
But rather I’m trying to create prosperity and abundance so that I have the freedom and the time to do the things that I value and that bring me and my family joy think of it like a magnet you attract what you focus on; so take some time to think about what you’re trying to achieve with a minimalist lifestyle and with budgeting and journal about it, write it down somewhere or you can do something like I did which is to create a vision board.
Track your money and create a budget : Money management tips
My next tip is that you need to track your money and create a budget considering that we spend so much money in our society. It’s funny that money is such a taboo topic money is such a taboo topic that one in four parents don’t even talk to their kids about money or their financial situation; if you want to take control of your finances you need to start tracking every single penny and create a budget that works for you and if you have never tracked how much money you’re spending I challenge you to track every single dollar, every single penny that you spent for the next 30 days and see where your money is going.
Cut Expenses : Money management tips
I always track and budget our money for the past 12 years which brings me to my next tip which is to cut expenses especially in the big three I’m not talking about fancy sport leagues or posh schools here the big three are the three categories in which most people spend the bulk of their income and these include housing food and transportation.
People tend to start cutting their expenses from smaller categories like clothing or entertainment but often you’re going to find that you get more bang for your buck if you trim the fat from those big three areas first this is where minimalism really can help you shine when you start decluttering you might find that you don’t have as much stuff.
When you don’t have as much stuff maybe you don’t need such a big house if you don’t need such a big house you can downsize and that means a smaller mortgage payment if you live in the city maybe you decide you don’t need that car and you can take a bicycle everywhere as for us we sold both of our cars when we moved overseas and we do have one car here I did not get a car from myself and we almost always walk or take public transportation except for longer distances.
I found that being able to cut the food budget made a huge difference in our monthly bottom line; we save so much money every single month. Because I’m able to take the simplest cheapest healthiest ingredients and turn it into multiple meals and healthy snacks for my family; in fact I have to say I kind of regret how good I’ve gotten at cooking. Because now my husband never wants to go out to eat because he says my food is just as good as the restaurant food.
Think about free and cheap : Money management tips
Before you go out and buy something new take a moment to consider is this something that you could get totally free when it comes to toys. My kids don’t want fancy bath toys what they want is an empty ketchup and soap bottle to squirt at each other in the bathtub; I’ve taken things that I literally found in the trash and turn them into beautiful home.
Décor pieces and luckily with the internet there’s entire online groups that are dedicated to trading free things in order to save money and; live sustainably look for local buy nothing groups and you can give and exchange free goods.
But minimalism as we know isn’t just about finding the cheapest thing you also want to find something. That you’re going to be happy with and that adds value to your life even if you’re not able to find what you want totally free; that still doesn’t mean that you need to pay absolute top dollar for it. Many times you’re able to comparison shop around and you can find similar options for a fraction of the cost.
Time is Money : Money management tips
“Look around; all that clutter used to be money; all that money used to be time,” says one of my favorite quotes. When you consider purchasing something, consider how many hours you would have to work to be able to afford that item; when you consider your money in terms of the time it takes, perhaps the expensive items you’re considering purchasing no longer seem as appealing.
Increase your Income : Money management tips
Anyone with common sense understands that you can only cut so much from your budget before there’s nothing left to cut. So, what do you do if you’ve cut everything you possibly can and you’re still in the red at the end of the month? We need food, shelter, and clothes unless we’re nudists, I guess, then you need to increase your income. Back when I was in college, I did that by taking on a second or third job, but now
To generate extra income, you don’t always have to leave the comfort of your own home; in fact, my minimalism journey began when I began decluttering the 30 years of clutter that I’d been hoarding following my parents’ deaths and I began selling it off online, which I would post in between my kids’ nap times when I was a stay-at-home mom, and I was easily making a thousand dollars a month or more.
Keep in mind that I mentioned that I made $15,000 selling our scrap through online, and I recently went back and totaled everything from the time I started until the time we moved, and I made $50,000 selling our clutter online.
Keep in mind that this includes an entire household with 30 years of scrap and two cars; however, all of that unwanted stuff was converted into money. Essentially, if you need to make a little extra cash, your own closet is a great place to start other common side hustles. Walking dogs, driving for Uber, reselling thrift, flipping stuff for money, or even starting a blog or a YouTube channel are all options.
Automate your savings : Money management tips
The next tip is to automate your savings and payments. How many times have you opened an envelope or logged into your bank account to find some hidden fee tacked on because you forgot to pay a bill on time or you received an overdraft charge? If you look at what the average savings account yields, even if you have a thousand dollars in there with 0.1 percent ape; you’re still only making 10 cents for that 1000 by the end of the year, which doesn’t seem fair.
Is it true that they give so little and yet take so much if you make sure you always have enough money in your bank account to pay your bills on time and automate your bill payments? Then you’re less likely to miss a payment and incur a late fee; all you have to do is log in once a week or once a month to ensure everything is going as planned.
It’s also a good idea to pay yourself first, see what I did there? If you find it difficult to save money when you have it in your hand or see it in your checking account, try putting the amount you want to save immediately into your savings account and then living off the remainder. After that, instead of saving what’s left over after spending, you spend what’s left over after saving. It sounds crazy, but it’s a great way to make saving a habit.
Educate yourself : Money management tips
And my final piece of advice is to keep learning about money and budgeting. I could literally sit here and talk to you about it for days. I’ll just leave you with one final point: continue to educate yourself about personal finance, budgeting, saving money, and making money; there is so much personal finance knowledge at our fingertips. There are entire YouTube channels and websites dedicated to providing free budgeting advice. There are also numerous five-star rated personal finance books. That you can get from amazon or your local library that you can continue to educate yourself.
How to manage your money to become rich? Money management tips
I accept that everyone can possibly get rich however for what reason are the assets discovered distinctly within the possession of a couple. This is one among the inquiries that surfaces frequently yet I feel the acceptable response isn’t unrealistic, the Rich individuals have learnt ,incredible abilities and immortal standards, that they practice every day and this has permitted them to remain rich.
How to manage your money to become rich? This Five Standards
will Change Your Life
These abilities and standards which they need dominated is which isolates them from ordinary individuals it’s the thing that creates them remain enhances, conditions may change, be that because it may STANDARD continue as before here are a few of these standards.
Standard 1 : Rich individuals think plentitude yet destitute individuals think
The rich have a completely extraordinary outlook with regards to the way to usher in cash sacred writing says as a person might suspect in his heart so is he.
How to manage your money to become rich? one thing the rich have had the choice to dominate is their demonstration of reasoning they comprehend that their musings would raise activities and their activities would raise results. they comprehend the principal law of accomplishment which is first inside at that time without.
who you’ve got gotten within are going to be considered the external once you understand that the overwhelming majority are helpless it’s useful for you to make a decision that you simply won’t come that mind way that they need decided to follow.
Standard 2 : Rich individuals see opportunity needy individuals see issues
Envision a teacher who got an appointment to instruct at an auxiliary school and he needed to point out the class, those preparing for his or her end of the year tests he showed all of them through the term.
What’s more after that, they had composed the tests countless them fizzled and needed to rehash the category. The educator could answer this by saying I do not comprehend why these understudies are so dull after everything of my endeavors of coaching they really flopped at,
Now another instructor comes. it sees the measure of disappointment among the understudies and he promptly perceives an opportunity to user in cash while bestowing decidedly into the lives of these understudies. This should be possible either by composing a book on pragmatic, advisers for finishing their tests brilliantly well or he coordinates extra classes for the understudies. How to manage your money to become rich?
Where they have to pay a further token to urge training for his or her tests the contrast between the 2 educators is that one saw a PROBLEM and therefore the other saw an OPPURTUNITY .
Standard 3: Rich individuals permit the premium on their speculation to accumulate
The fact of the matter is no matter how incredible ability or endeavors a couple of things simply require some serious energy, Warren Buffet says building abundance is one among them there’s consistently a period stretch between the time you make ventures, furthermore, when your speculations will yield profits the rich comprehend the law of deferred satisfaction the rich comprehend the standards of progressive accrual and they make it work.
They just take the premium that accumulates from an underlying capital put and set it back to the business to supply more enjoy the underlying benefit.
Standard 4: Rich individuals mind their affiliations while poor people don’t
It is said that your organization will decide your organization rich individuals are cautious and conveyed in making a selected kind of organization around them individuals with domains to them, individuals whose thoughts whenever chipped away at and put resources into will become gold mines.
Indeed, even the sacred writing says he who works with the shrewd are going to be insightful investing energy with rich individuals is imperative on the off chance that you simply need to succeed monetarily.
You’ll be astounded at how your viewpoint changes once you hear individuals discussing the quantity they create during a solitary day I heard the story of Jackie Kennedy however quite while ago spouse of john F Kennedy, at the purpose when she said within the event that I used to be poor I understand how i will be able to affect financially recover I will be able to attend the foremost costly eateries in New York. How to manage your money to become rich?
Without help from anyone else a glass of water and listen in on the discussions of the rich, they are mindful so as to not keep inside their circles, individuals who are nearsighted in their reasoning this is often the way significant your affiliation can be.
Standard 5: Rich individuals usher in their cash work for them while the helpless work for cash
An extremely huge number of people work for cash this is often a results of the sensation that they were surrendered while developing that to become effective you ought to concentrate hard get passing marks go to the best schools. Secure an honest paying position and save until you resign there’s not anything amiss with all of this as long as you’re, satisfied however Robert Kiyosaki says, the issue with this system is that you simply simply just usher in cash as long as you’re employed he said the lone thing of serious worth that you got to trade is some time .
How to manage your money to become rich? In any case, once we trade our time for cash our acquiring potential is restricted on the grounds that you simply can just usher in cash while at your particular employment thus to urge more cash-flow you have to work longer hours, which is genuinely burdening, he says that the rich father revealed to him the poor within the labor work for cash while the rich have cash work for them, they are doing this by deciding the way to contribute.
And afterward placing their take advantage resources like organizations and ventures that produces automated revenue until they reach where they don’t have to work any longer.
They basically spend their cash on resources while the poor spends theirs on liabilities.
— Susanna tips and tricks
What is financial freedom? This is a question that many people ask, but it is not always easy to answer. Financial freedom means different things to different people. For some, it might mean being able to quit their job and travel the world. For others, it might mean being able to provide for their family without having to worry about money.