Critics may argue, this sounds crazy, how can people prosper under Covid 19 era. I just want to warn you that global crisis will come and go but humanity will always remain. In no time this information will become vital tool to your financial future
The following are some of the practical methods you can use to save money for your financial prosperity
Why must you save?
One of the most important rules to remember when building wealth is that, it’s not how much you earn, but how much you save!
Here are some of the reasons why it’s essential to save;
- Help you to build wealth
- Protect you and your wealth
- Make provision for your children’s education
- Ensure that you have comfortable retirement
Develop a habit to save regularly
Saving regularly is easier than you may initially think. If you want to be prosperous, you should try to save a small amount of your income each month. Of course, you can save large amounts too if you want, but you don’t actually need to save millions.
In fact, by just saving a little of everything you earn, you could build millions with the help of a secret weapon called compound interest, which allows you to earn more and more every year.
Don’t ever think that small investments are insignificant. Over time, your small savings could grow into astronomical amounts. All you need to improve your life is to make a start and you’ll soon want to cultivate a lifelong habit of saving, because you’ll truly enjoy the results.
If you want to prosper and build wealth, it’s important to ensure that you make smart financial moves.
Making smart financial moves
- Cultivate the desire to grow your wealth and improve your financial situation. Set realistic short-term and long-term savings goals that you can work towards, such as
- starting your own business,
- paying off your home over a shorter period of time,
- buying a new home or saving enough money for your retirement, etcetera.
As you achieve each goal, it will inspire you to set another one.
- Live according to a fixed, monthly budget, which covers all of your obligations. A budget should be used as a guideline to help you to make smart financial decisions. It does not have to be a straightjacket that limits the quality of your life.
- Invest the greater portion of your savings in growth assets, which increase in value (such as a home, a business, listed shares or unit trusts), so that you are protected against inflation and you can achieve high capital growth.
- Wait and save to pay cash for those assets, which quickly lose their value (such as clothing). Assets that increase in value can be bought on credit.
- Don’t constantly move in and out of the stock markets and other investment instruments. Save and invest over the long term for the best returns.
- saving regularly,
- making smart financial moves with your money
A word of warning, these practical steps are no substitute to what you already have, they’re additional