Let’s accept the truth, everyone wants to be rich, and trust me it’s not wrong. It is ok if you want to earn more money. Running behind the money and not caring about other things is not. But that is not something that we are going to talk about today. We are going to tell you those 5 habits that will be helpful in earning and saving more money. And when I say rich people I do not mean those Tata’s and Birla’s, well they can come under this category obviously, all I am saying is all those people who are living a satisfactory life and saving satisfactory money can come under this category.
1. Establishing saving goals: Saving is the key to being rich. Establishing saving goals from the first pay cheque that you earn is really important. Not necessarily you will achieve your goal on day one, but with the consistent effort, you will reach there super soon. In the beginning, you can set an 80-20 % ratio. That means you will be able to spend 80% of your earnings on your basic and personal needs, and 20% of your earnings have to go into your bank account for savings. After a year or so... Or depending upon your work status you have to set a goal to make it 60-40% ratio. Which means you have to utilize 60% of your money for spendings and 40% have to go into saving account. In this way, you will be able to save more, and then complete your other goals.
2. A big “No” to lifestyle jumps: It’s a human tendency that whenever we start earning more, we tend to spend more. Whenever the salary increases we think of changing our car or TV or think of buying something expensive, thinking that it will increase our prestige. This is the biggest mistake that we do. Successful rich people always avoid big lifestyle jump. It is not necessary to shift to 3BHK from 2BHK just because your income has increased. Most of the successful people advise that the additional income that has been increased, Whatever % it may be (for ex: 10,30,50%) should directly go into your saving account, and not in your expenses.
3. Investment Automation: We need to learn one thing to be financially successful that we must invest our money in an appropriate place. And it should be automated. For example: If we are investing our money into a mutual fund, our money directly vanishes from our account on a particular day of a month. When it happens manually, there are chances of spending that money for a different purpose, but when it is automated, we can not do anything about it and strictly that money goes for saving. In this way, you will get habitual of saving a particular amount per month.
4. They live frugal life: As a financial expert and YouTuber, Saloni Shrivastava very well explained in her video that financially successful people live frugal life. Now, what is a Frugal life? It is a life that is not filled with excess or more than necessary. Where you only have the things that you actually genuinely need. For example, you need not have a shoe rack filled with lots of pairs of shoes. You have 2 or 3 pairs of shoes which you use multi purposely. At the same time, it doesn’t mean that you constantly worry about money, it means that you invest your money wisely in the things that give you long term value. For example, investing in a good quality camera or Laptop can be considered correct in frugal life.
5. Choose your company wisely: This habit you will find common in many financially successful people. They choose their friends wisely. Imagine you are spending time regularly with a group of people who tend to party every now and then or who visit extra expensive places frequently or who go out for a meal every now and then, you will never ever be able to save a good amount of money. It is ok to do all the things occasionally or once in a while, but spending your valuable money on things like these can definitely stop you from achieving your financial goals.