Money secrets that successful people won’t tell you

Are you tired of the work you swore to quit countless times? Stuck in a routine and started to envy the big accounts of successful people? Perhaps it is all about unrealized opportunities or unresolved problems in the financial sector. If you are interested in what successful people think about managing career and money, this article is for you. So, hurry up to strengthen your budget with tips from real financial professionals who will help you reveal some simple cash secrets..

1. Keep a budget

Do you have a friend whom you always call to re-pay? If so, then this friend most likely thinks that it really will not hurt you to draw up a budget plan and follow it. Fortunately, this only requires a little.

To get started, find the right application or computer program to organize your finances. In extreme cases, there are always Excel tables. Import data from the last few months from all debit and credit cards there. You will probably be surprised at some of the totals for each category. Look at the results and decide what expenses from each article can be easily cut off. Ideally use this scheme:

• 50% of your salary should go to basic accounts, food, housing and basic necessities;
• 30% for personal expenses;
• 20% to pay off debts and create savings.

2. Save even more

Most of us will not live comfortably and richly in old age, if we rely solely on social benefits. What to do to prevent retirement poverty? Take advantage of retirement savings schemes and offers from your employers. Save 10-15% of your salary for retirement. If you cannot save so much, just start with the amount that seems safe.

3. Reduce debt on loans

Money secrets will not do without it. However, this should not be a secret for you. Financially savvy people see in credit cards only an additional convenience tool, but not the main debit account. If you have high interest rates and still have enough money from paycheck to paycheck, you simply overpay for what others buy without debt. It is better to avoid using credit cards in general, as the absence of a loan creates a financial airbag.

4. Start investing

You think you cannot invest because you do not have money. But what if you do not have money because you are not investing? Passive income is a key factor in the struggle for financial success. It allows you to generate income or increase assets, even when you are not working. Invest in a small business, the stock market, or at least in bank deposits, so that the money works for you.

5. Always consider opportunity cost

The purchases you make always have two prices: the cash value that you pay and what you refuse when you make a purchase. People in the financial sector call the latter “opportunity cost.” For example, you bought shoes, so now you can not afford to contribute to the investment portfolio. Billionaire investor Warren Buffett talks about potential spending, calling them “errors of omission”.

6. Do not be afraid to work with a financial advisor

Even for millionaires who made themselves and whose bank accounts are based only on their own genius, it made sense to turn to financial managers and managers. The first step in developing your financial plan is to meet with a consultant to improve cash flow, expand investment, and simply understand finances.

7. Automate financial security

When the desired salary arrives, it is very tempting to spend it here and now, rather than increase savings. But it’s better to go to the personnel department of your company and ask that a few percent of the monthly income go directly to your savings or investments. The truth is that you are too busy to spend the whole day thinking about creating wealth. You need a system that works during your vacation, i.e. system that is automated.

8. Stop living beyond your means

Warren Buffett still lives in the house he bought for $ 31,500 in 1958, Mark Zuckerberg drives a Volkswagen hatchback, and IKEA founder Ingvar Kamprad often rode the bus to work. Their net profit ranges from 40 to 60 billion dollars, but if money is not the reason for these deprivations, then what is it??

Simple savings and practicality, this is what reveals the whole point about money secrets. Some of the richest people on earth admit that living just below available means is important for financial sustainability. Take Bill Gates, who said: “I can understand why you want millions of dollars, because there is a certain freedom, significant freedom that comes with it. But as soon as you get so much more, I must tell you that the hamburger remains the same. ”.

9. Don’t give up too fast

If you are not born rich, you must work hard and make firm decisions that will lead you to wealth. Any successful person had their own falls, barriers and personal demons. But the desire to succeed and the ability to overcome failures in such people were more than anything else. They are ready to stop at nothing.

10. Save on excessive nutrition

Many love coffee in the morning and Prime afternoon sandwiches for a snack with colleagues. Meanwhile, you spend 500 rubles, which during the month add up to 10,000 rubles.

In a major city at current prices, refusing to buy coffee at Starbucks five days a week will return you around 50,000 a year. Returning home, brew a cup of coffee yourself. It costs much less money and allows you to save.

11. Set clear financial goals

Surely, you have a friend who runs marathons, climbs mountains or almost earned a million before celebrating his 30th birthday. Such people have a clear goal to achieve something and manage their money properly..

It is very difficult to get where you are going without knowing where you want to go. It is also very difficult to save money without setting goals. These goals may include retirement, vacation, housing, child education, etc. Whatever your financial goals, write them down and then make a budget for them. If you get stuck, call your financial advisor..

12. You need an emergency fund

This is a cash reserve. Life has an unpleasant habit of throwing stones in the back in the form of emergency car repairs and unexpected medical bills..

Instead of drowning in new debts, try to make sure that any new expenses can be covered within three to six months. The same applies to maintaining a normal lifestyle when you unexpectedly lost your job..

13. Do not be too cute

Not tough, but successful people did not reach the financial peak, lending money to people. We lend to others because we feel good. It can be hard to say no, but in the end, you have to do what is best for you and your family. However, this does not mean that it is necessary to kill normal human sympathy at the root. You just need to consider your risks and opportunity costs for lending to friends and, if possible, advise friends to use other resources.

14. Give in to fashion less

You probably know your humble friend with the iPhone 5, old jeans and a bulky TV? He silently shakes his head at your iPhone X, Dolce and Gabbana, and Smart TV. When it comes to impulsive and superfluous purchases, trust the inner voice, you always know in your soul when you can really be indulgent to yourself.

Another trick to control your own expenses is to pay in cash. Such advice makes spending much less convenient and gives you a real sense of how much you really go too far with spending. Studies show that people who pay in cash instead of credit or debit cards tend to spend 15-20% less.

15. To summarize

Money secrets ultimately come down to patience and planning, which are the two most important habits of rich people. Consistently managing your finances, saving and investing, you will not be able to get rich right away. But at the same time, the right habits will slowly and steadily replenish your balance.

If you didn’t start using your strengths when you were 18, don’t give up. Start saving, investing and planning right now. The best-selling author, founder of Ramsey Solutions and host of the National financial radio show, Dave Ramsey reminds us all: “Getting rich doesn’t work fast. The mentality of a cooker always wins the mentality of the microwave. ” In other words, you go quieter – you will continue.

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