30 financial tips to help you get richer

2024 Author: Malcolm Clapton | [email protected]. Last modified: 2023-12-17 03:44

Lack of money leads to suffering, but money does not guarantee happiness either. Strive for the golden mean.

Photographer and blogger Eric Kim shared how his change in attitude towards money helped him achieve financial stability. He grew up in a poor family, often did not know if they would be able to pay the rent or if they would stay on the street at the end of the month. He had to watch relatives and friends quarreling over money.

He now owns his own business and no longer lives paycheck to paycheck. He did not become a millionaire, but he reached the point where he does not need to constantly think about finances. Kim shared tips that he would give to himself at 18. Perhaps they will be useful to you.

Eric Kim

Money is a tool that allows me to do what I love. I do not consider them an end in themselves. Now I don't need any more money. But I continue to work and earn money to help my family and loved ones.

1. If you convince yourself that you need a thing, do not buy it

One of the biggest financial mistakes is buying things unnecessarily. We often do this: buy new clothes, a phone or a computer, just to keep up with others and to feel fashionable. But most of these things are us.

When something is really needed, you know it right away. If you have to convince yourself before buying, do not take this thing.

2. Don't buy the first models

When you see a new model of a car, camera or smartphone, do not rush to buy it. Wait for the next version: it will not have the problems and flaws that the first versions sinned. You will save yourself from unnecessary headaches.

3. Do not skimp on what makes you happy

Money can buy happiness by spending it on experiences and things that matter to you. If they delight, inspire, and motivate, they are a necessary investment in your well-being.

Just remember that the pleasure of things is faster than the experience.

Within two weeks we get used to new things and stop noticing them. Impressions delight much longer. They can be mentally relived. They also help us grow and develop new skills.

4. Earn more and spend less

Many people start spending more after the salary increases. They buy an expensive car, travel more often and eat in a cafe. As a result, they do not become richer, but remain at about the same level of wealth. But if you earn more and spend less, there will be free funds. They can be deposited or invested.

Think about how you could earn more: take on additional responsibilities at your current job, find a part-time job, and get busy. Then think about how to spend less. For example, cook at home and go to the cafe less often. Spend less on clothing. Sell your car and use public transport. Don't chase fashion news. Use the remaining funds to pay off debts or save for something.

5. Never go into debt

No matter how rich you are, if you are in debt, you are a slave to the banking system. You have to work to pay them and maintain the required standard of living. Perhaps at a job that you don't like.

Therefore, never borrow. If you are thinking of starting your own business or creating some kind of project, but for this you need to get into debt - postpone this venture. Start only when you can pay all the costs yourself. This way you risk less. And also the lack of funds forces us to look for a creative approach to problems.

6. Learn not to want more of what you already have

Being rich doesn't mean having everything you can. Real wealth is when you don't need anything other than what you already have.

And a billionaire can be poor if he constantly needs more and more. He may own real estate all over the world, but if his friend has a private spaceship, he will still be jealous.

We feel that we are missing something when we compare ourselves to people who are richer than we are. Instead, compare yourself to those who are poorer. Then your current lifestyle will seem sufficient to you.

7. Look not perfect, but good enough

We always strive for the ideal, we want to have all the best. But think, do you really need the best car, the most powerful smartphone or an apartment in the most respectable area? Maybe what you have now is enough?

Try not to use the phrase "best" for a month. See how your shopping habits change and how much money you save.

8. Don't buy many items from one category

Life is much easier if you have one phone, one computer, one pair of everyday shoes. In clothes, you can limit yourself to one type of trousers, shirts, socks. You will make fewer decisions, be less nervous, and spend less money.

Take a look at your items and think, what 10% of them are you using 90% of the time? Try it. Sell, donate, or throw away your unwanted items. You will feel relieved, will be able to pay more attention and energy to important matters.

9. When choosing a product, focus on a lower price

The brain clings to the first price you see. Then you select a product in comparison with this price. If at first you were offered a camera for 50 thousand, and then - for 30, the second one will seem to you a bargain. Although, perhaps, a camera for 15 thousand would suit you.

To spend less, look for lower value items first. Compared to them, the rest will seem more expensive. As a result, you will stop at an acceptable option and not spend too much.

10. Change your environment to consume less

Our environment influences how much we consume. When everyone around you is changing gadgets and cars often, buying new clothes and dining in a restaurant, it will be difficult for you to resist. If you want to spend less and live more modestly, try changing your environment. Naturally, it is not always possible to move to another area or city. But you can change your lifestyle. Go to shopping centers less often and avoid anything that makes you want to buy something.

11. Block out ads

We do not even notice how advertising changes our idea of some product, making us want it. Avoid it by all means. Don't watch TV, don't read magazines, turn on your browser's ad blocker. Unsubscribe from mailings. Buy paid versions of apps to disable ads.

Try as much as possible for a month. Then assess whether you are thinking less about shopping. And check how much you've saved in that time.

12. Remember: the more money, the more problems

Money is desirable until a certain point. When there are enough of them to pay for housing, save some and not worry, more income will no longer make you happier. As income rises, so does stress. You need to worry about the tax authorities, about unsuccessful investments, about greedy relatives who ask for money and secretly await your death.

The same applies to things. For example, the bigger your house is, the more worries you have: you need to clean a large area, buy more furniture, repair and change the most. Therefore, when considering a purchase, consider these hidden disadvantages of owning a new thing.

13. Invest in your development

The most important thing is to invest not in the stock market, but in yourself. Books will help with this. Most often, a book is a squeeze of the author's ideas over several years or even over a lifetime. This is an opportunity to learn about the lessons the other person has learned and apply them to your advantage.

The more you invest in expanding knowledge, finding new ideas, and developing creativity, the more you reap the benefits.

If you pick up at least one new idea from the book that inspires you, then you have not wasted your money.

14. Ensure your own financial stability before helping others

If you are having difficulty with money, do not lend it to someone - even a family member. You will worsen your situation and in addition spoil the relationship.

Better not to lend money to friends and family at all. If you want to help, give them free of charge. This is the only way to maintain a good relationship. But help when your own financial situation is stable.

15. Don't invest in stocks

You can't get rich on them. Professional traders often act at random. But it's not only that. Even if the value of your shares rises by 30%, the profit from this does not compare to the profit from. After gaining new skills, after a while you will earn more.

Consider how such an investment will help you get rich. Maybe you should take some courses, sign up for a seminar, or start your own business.

16. Don't risk in vain

It is believed that entrepreneurs like to take risks just for the sake of risk, but this is not the case. Good businessmen think carefully about their actions and do not allow situations in which you can lose all of your capital.

If you are going to start your own business or invest in something, remember that you can always fail. Prepare for this and make sure you don't lose all of your funds.

17. Strive not for wealth, but not to go broke

If you are a business owner, focus not on how to increase your profits, but on how not to go bankrupt. If you are an employee of a company, think about how to stay relevant. For example, you can learn new skills or expand your responsibilities.

18. Mentally exaggerate your spending and underestimate your income

very easy. We often look at the world through rose-colored glasses, overestimate ourselves and underestimate problems. Imagine that you are poorer than you are and cut costs. This will help you spend less and gradually accumulate funds.

19. Don't buy the most expensive items

An item for 1,000 rubles will not make you ten times happier than an item for 100 rubles. It seems that expensive goods bring more happiness, but it does not depend on the amount of money spent. There is a certain amount, after which the pleasure of shopping no longer grows. It is different for everyone. Find this golden mean for yourself and do not spend more.

Don't forget that the pleasures are boring too. Especially the joys of food, sex, travel and shopping. Over time, they become less intense, no matter how much you pay for them. Therefore, there is simply no point in spending more and more money on things.

20. "Think like a rich man, dress like a poor man."

Andy Warhol said so. Wear basic clothes, drive a regular car, and choose things that are practical. Those who wear expensive brands for show often, on the contrary, have no money and live in debt. They are simply not confident in themselves and want to attract attention through expensive items.

Be rich inwardly. Remember that you have everything you need. Think less about shopping. Spend more time and energy creating something important.

21. Live more modestly than income allows

We get used to new things in two weeks. No matter how expensive they are, they no longer make us happy, because they are becoming commonplace. Try to get used to a more modest lifestyle as well.

Buy a cheaper item, even if you have enough for an expensive one. Buy - Inexpensive equivalent to brand name drugs. In a cafe, choose the cheapest coffee or the simplest dish. Over time, this will become a habit.

22. Don't get hung up on brands

When looking at a thing, think not about the brand or the price, but what it really is. Lexus is just an expensive Toyota Camry. Filet mignon is just a fraction of a cow's carcass, and expensive wine is fermented grape juice. The new smartphone is just a piece of metal with a touchscreen. A branded suit is a piece of fabric sewn by some worker with a minimum wage.

Constantly reduce the value of such things in your eyes. Then they will become less attractive to you.

23. Don't spend all your money on investments

If 99% of your funds are invested in real estate, you are deprived of financial freedom. In an unforeseen situation, you will not be able to pay off and will have to borrow. Try to always have free funds that can be quickly withdrawn from the account. This is also useful in case there is a profitable opportunity to invest them.

24. Don't buy anything that you can't pay without loans

We are too optimistic about our capabilities. It seems to us that we can quickly repay the loan. But debt piles up like a snowball. The more there are, the more firmly you fall into slavery to the banking system. If you still want to use your credit card to receive bonuses, buy only what you can pay without loans.

25. Don't be cheap when you charge for your services

Appreciate yourself. If you're an entrepreneur or freelancer, charge a little more for your services than you think you deserve. You may lose a few clients, but in the long run you will get more profit.

Of course, when you are just starting out, you cannot ask too much. To gain experience, work for a while for free. But then charge for services above average. If you settle for an average pay, you always have to somehow make ends meet.

26. Work on what you love in your free time

Many people want to quit their office work and do what their soul lies in: becoming a photographer, traveler or writer. Don't do this until you have financial stability. Live on income from your main job and do your free time.

Get up an hour earlier, use your lunch break, do something useful in the evening instead of watching TV shows. When the money from the extra work is enough to pay the bills, you can leave the annoying company. But always have emergency funds and a contingency plan ready. You may have to live with your parents again or return to your old job.

27. Think about what else you can buy with the money you are going to spend

Usually, when buying, we compare only items of the same category. For example, smartphones from different manufacturers. But maybe instead of a cool new phone, it's better to go on an interesting journey? Or invest in your education? Or pay off part of the debt?

28. Imagine how you will react to the purchase in 5-10 years

See things realistically. Any purchase in 5-10 years will lose its presentable appearance. This is especially true for cars. Better not chase fashion, but count on the long term.

29. Remember that money itself has no value

Fundamentally, money is just paper. Even precious metals are nothing special - they are just shiny stones. Think about why they are important to you. Perhaps they give you a sense of stability or symbolize success. Determine what money means to you. For example, freedom, strength, no pain, the ability to do what you want.

Don't take money too seriously. And don't forget about the really valuable things: relationships with loved ones, important work, gratitude.

30. Don't become a slave to money

Money is neither good nor bad - it's just a tool. We decide for ourselves what to use them for. Think about how they affect your life. Why do you need money? What joy and anxiety can they bring? How can money help you and others? And can they ruin your life?

Provide yourself with everything you need to live. Once you have enough money for this, spend time and energy on your development. Then do something useful and help others.