Wealth accumulation is a gradual process that is similar to growing a garden through drip irrigation. You will never feel the pain of saving or eliminating unnecessary expenses. You will be comfortable, confident, and luxurious while the droplets accumulate silently in the backdrop. One fine day, your bank balance will make you satisfied by the wealth you have accumulated.
Myths of Making Wealth
Rags-to-Riches: It is time to stop such insane ideas from dominating your mind. Wealth doesn’t flow through casinos, horse racing, and online betting games. They only drain your savings and drive you more insane every Dayanidhi.
Risky-Investments: Risky investments in unknown and insecure trading can run your financial base and drive you to bankruptcy within a short time. You may never be able to recover from such conditions.
Truths of Making Wealth
Savings from your earnings could contribute to wealth accumulation considerably though not significantly. Reducing everyday non-essential expenses can also be helpful in saving. But the truth is you have to increase your sources of income intelligently.
Creative Works: How creative is your mind today? Can you paint, sing, write, play an instrument, compose a lyric, or teach a foreign language? You may have other talents that are untapped. You can utilize such talents for wealth accumulation.
Take some time off every day from your work and devote for talent training. Within the next few weeks, you will be ready to earn. Find the right promoter /consultant in your city or online. You may go solo or build a team. Start performing and start earning. It could become one of the most significant sources of wealth accumulation.
Job Change: Experience and specialization on your professional domain can help you to earn higher than your present income. Find a high paying employer and change your job within the next few weeks. You should also evaluate the risks and calculate the benefits before making a decision.
Extra Job: Taking a part-time job is yet another source of accumulating wealth. You may have to spend more time at the desk or on the field during weekdays. It may also mean sacrificing the weekend and giving up many hobbies and habits. You can accumulate wealth consistently by being persistent.
Small Business: You can start a small business and become an entrepreneur. Contact your bank and enquire for the business loan. Invest in a business in which you are proficient. Or you can get trained in a business that is potential revenue earner. It is a good practice to make your spouse as the partner if you are married. S/he can manage your business when you are busy in your work.
How About Stocks
Stocks and bonds can be rewarding if you invest in the right industry that will continue to grow in spite of market risks. Treasury bond, logistics stocks, and savings certificates are some of the recommended investments. You may consult your stockbroker and assess the other possibilities that are safe and rewarding for long-term investments.
Try any of these methods for two or three months. You have to save all the earnings from such sources without spending. Then you can know how much wealth you can accumulate in the future based on what you have done.
How to Spend More and Save Extra
The title may look like two contrasting ideas that are exactly opposite to each other. But your life is much more than a mathematical equation. You can open up possibilities which may not be visible to your open eyes. So, you need to close your eyes and think. Focus on how you can achieve the twin goals without having to become a millionaire overnight. Here we suggest a few guidelines which may help you to achieve a seemingly impossible goal in simple steps.
Step-1 Increase Your Income
Avenues: Opportunities to earn more are available online in your hometown. For example, stay at home jobs in Texas can bring you plenty of links on the search engine result pages. You can write product reviews, blogs, social media content, copywriting, advertising content, and so many other types of content.
You may also plan for creative designs, graphics, engineering drawings, art and architecture works etc. Nearly all of them are high paying. You may need to spend only a few hours of your free time after your office hours.
Client Selection: You have to select the clients who pay you regularly and on time. Search for reputed companies whose hourly pay rates are higher and stable. You should have a set of design and content templates for sending as initial samples.
Domain Selection: Choose a domain which makes you happy while working. Taking up boring and complex projects can kill your motivation and complicate relations with the clients. You should have special skills and motivation to work consistently.
Step-2 Start Spending
How to Spend: Once your finances have reached a stable state, you can start spending. But you have to make sure every dollar you spend should earn you $ 1.5 in return. What sort of spending are we talking about here?
Spend on buying a higher capacity computer for your design and content work. Spend on buying a digital printer for printing photographs you shoot.
Spend on buying a scanner to scan old engineering drawings from paper. You can edit those using CAD tools and provide better service for your clients. You can also spend to get training on the latest technologies and tools for your part-time /freelance job.
When to Stop: Once you reach the threshold of your business needs, stop spending and start working. You can experience a surge in your earnings within the short span of time.
Step-3 Start Saving
Now, it is time to start saving. Your office work and the extra job may take most of the time during weekdays. It may also take your weekends. Don’t worry. You can start saving in your bank account. Make intelligent investments in stable stocks like logistics, treasury bonds, pension plans, and others. Your consultant can help you to choose the right plan at the right time.
Step-4 Start Spending
Now, it is time to start spending again. You can think of taking a break and visiting Hawaii for a holiday. You can take a spiritual trip to Tibet. Or you can holiday on the Bahamas with your family. Get inspired and return to work. Start from step-1 and grow rich.
Best Exercises for Financial Flexibility
Financial flexibility is a state in which you can afford to spend a few more dollars for your favorite cuisine in a restaurant. You can afford to buy a more comfortable home with heating and cooling systems. You can afford to treat your parents in a specialty hospital. You can afford to send your children to international schools. You can afford to spend two more days of holiday in Hawaii and the Bahamas. Well, you can increase the list to infinity. But how you do it? Here are a few simple tips.
Essential Spending: You need to give top priority for the essential spending to your household items, grocery, utility bills, tuition fee, etc.
Other Priority: Would you prefer to spend more on an annual holiday or having an expensive sofa in your living room? Would you spend more on buying a home or have an extended holiday in Taiwan? We are talking about prioritizing the spending. When you spend on your mortgage loan, it is possible to save on rent and reduce the risk of having to change rental homes frequently. It is also an investment as the future asset.
Asset Accumulation: Accumulate assets for you and your family. Spending on buying moveable and immovable assets is an investment. You may buy appliances, equipment, and tools, car, gold, bonds, shares, and stocks, etc.
Leisurely Spending: You can take a well deserved holiday during Christmas and New Year. You don’t need to spend a fortune. But you can surely make it memorable for you and your family. Plan your holiday so it can refresh your mind and energize your body.
Language Skills: There are plenty of opportunities to earn extra in the present digital era. You can take up a franchise of an established online language school. If you are well versed in foreign languages, it is the best opportunity to earn. Online translations, interpretations, and transliteration are some of the works in demand today. You may also create English subtitles for foreign language films and documentary.
Other Skills: You may open a small business from your home. It could be selling art and artifact. You may choose to sell handicrafts from Asia. You may choose to teach Yoga. You may choose to open an Italian or French restaurant in your city. You may choose to sell artificial jewelry from or you may choose any other part-time job and small business. Your aim is to earn extra money apart from your regular salary.
You may reserve your salary income for household expenses, loans, insurance, tuition-free, and medical expenses, etc. You can also reserve a part of your salary for short-term and emergency funds. But your entire savings from part-time job and small-business should go into long-term saving.
Optimizing the procedures for earning, spending and saving can give you the maximum financial flexibility in your life. You can dare to spend a few more dollars for the cappuccino you drink at your favorite restaurant on your next visit and smile.
When to Stop Dreaming and Start Building Your Dream Home
You have been dreaming of a home for many years. You have also been saving a significant part of your income. You are still waiting for the right time to start building your home. Today is the time for you to take proactive steps without procrastinating further.
Evaluate Your Savings
You may have done the savings in many forms. Bank accounts, stocks, bonds, and other investments can be useful for making down-payment to your mortgage loan. But you’ll need to convert them into cash assets before taking up the mortgage project. You can consult your stock brokers and find the fastest possible ways to transfer the investments as cash into your bank account.
Credit Rating: It is essential to have a decent credit rating and plan for ways to improve it. The first task is to start paying your bills through credit card. Clear your credit card balances on time. Keeping a low balance can help to increase credit ratings.
Credit Limit: Increasing your credit limit is one way of avoiding negative credit rating. It can also increase your purchasing power and the loan limits for a mortgage.
Reduce Debts: You have to reduce other debts and clear the existing ones as soon as possible. Giving top priority to your home building means you have to forget about other luxuries like an expensive car, jewelry, holiday travels, etc. Initially you may find it to be a tough task, but eventually, you will get conditioned. Then it is possible to have a low debt which is a positive booster for your mortgage.
Plan Your Budget
The budget for the dream home should be within your repayment capacity. Evaluate the basic accommodation you need in your home. If you are a small family, it is better to plan for a two bedroom home.
Buy or Build: You have to choose between buying an apartment and building your home. A real estate consultant can give you the best advice based on your budget. If you own land it is better to build. It gives you scope for extension in the future. You may think of extending your rooms or building additional structures when the finances stabilize.
Buying is more economical than building. You don’t need to deal with the hassles of contractor management, material management, inflation, and other uncontrollable factors. But your home may be restricted in its dimension and facilities. It is better to take a decision after consulting with your family.
Mortgage Loan: You can apply for a mortgage loan after talking to your consultant. He can advise you about the right bank or financial institution to approach. If you are an employee and have a regular source of income, it is possible to approach a federal or state-owned public bank.
Low-interest rate and flexible repayment policies will make your mortgage simpler. Make sure you have insured your home for fire, external elements, and other forms of damages. You can start building your dream home now by taking the proactive measures listed here.
Fashion2 years ago
These ’90s fashion trends are making a comeback in 2017
Entertainment2 years ago
The final 6 ‘Game of Thrones’ episodes might feel like a full season
Fashion2 years ago
According to Dior Couture, this taboo fashion accessory is back
Entertainment2 years ago
The old and New Edition cast comes together to perform
Sports2 years ago
Phillies’ Aaron Altherr makes mind-boggling barehanded play
Business2 years ago
Uber and Lyft are finally available in all of New York State
Entertainment2 years ago
Disney’s live-action Aladdin finally finds its stars
Sports2 years ago
Steph Curry finally got the contract he deserves from the Warriors