“Money can’t buy happiness,” so they say. But if you think about it, money does buy you the things and the life that you want, and that makes you happy. Being rich is something that most of us dream of but only a few really get to achieve. So the big question is: what does it really take to be rich?
Live as if You Are Poor
You hear this advice a lot—live below your means—and it’s because this is one of the easiest ways for you to be rich. Mark Zuckerberg is a perfect example.
For a man worth $82.3 billion and the fourth richest in the world, you won’t see Zuckerberg flaunting his wealth through designer clothes and luxurious cars. Instead, you’ll find him wearing his signature shirt and jeans and he also drives a very affordable car.
Never spend more than you make and if you want to invest in something expensive, save up for it. According to a survey from the Pew Charitable Trusts, 55% of Americans have stated that they either break even or spend more than what they actually make every month. If you want to become rich, live as if you’re very poor.
Get Rid of Bad Debt
We all have debt and some are due to important life investments like a house, car or insurance. But if you’re going to be rich, you cannot afford to have bad debt lying around and taking away what could have been part of your savings or investment funds.
We’re talking about credit cards and high interest loans that will leave you paying most of your income on interest rates and other charges.
Learn how to budget your money so you can pay off any existing bad debt faster. Of course, don’t go back to the same black hole again so you can start building your wealth.
Track Your Expenses
John Travolta once said: “I know where every cent I’ve ever spent has gone.” When you know where your money is going, it’s easier to determine any unnecessary expenses that could be putting a dent to your budget. This will allow you to cancel anything that you’re not using or adjusting budget allocations for things that you don’t necessarily need at the moment.
For instance, if you see that your mobile phone bills have been increasing over the last few months, you’ll start to look into your bills a bit more and cancel any subscriptions that you haven’t used or benefited from.
Finally, make it your goal to be the owner of that roof over your head. A house is one of life’s biggest investments but it’s worth every quid you spend. While it’s not bad to rent, you’re actually spending money for someone to be rich by paying their mortgage.
At the end of the day, you’re only paying for occupancy and when the time comes, you’ll have to leave that house without benefiting from all the money you put into it.
By making it a goal to slowly invest in your own house, you’ll have more security in your finances because you already have a place to go home to and a great investment that you can make money from in the future.