- I Will Teach You to Be Rich
- Ramit Sethi
Everybody likes the idea of a get-rich-quick scheme – whether that is inventing the next must-have gadget or simply hitting it big with a lottery win. The trouble is, these type of plans aren’t really that reliable. But you want to be rich, right?
Here are 11 tips to help you build up your bank (while you wait for that lottery win:)
1. Check Your Budget
Check out your expenses and see where you can cut back. Do you need that expensive cable TV package (do you watch all those channels?). Do you need to buy a coffee every day on the way to work?
Check out what you are spending each week or month and see where you can cut back. The first step to having more money is wasting less!
2. Ignore The Joneses
Keeping up with the Joneses is a quick way to having no money. Ignore the family who seems to have the latest car, go on exotic vacations and wear all the latest styles. The fact is, they are probably running up debts or if not living just one paycheck away from disaster (like most Americans!).
Instead, live below your means. You don’t need to spend every last cent that you earn, and you don’t need to buy the latest of everything either.
3. Pay Less!
Why pay more for something? Wealthy people know that they don’t have to pay full price for everything. In fact, statistics show that households with an average income of $100,000 or more use more money-off coupons than those who earn under $35,000 per year! Don’t forget to search around for bargains or even second-hand items online!
4. Get Free Stuff!
Even better than getting things cheap is getting stuff for free. It’s true that a lot of celebrities get free clothes and so forth as endorsements, but you may be surprised to see how much you can get or do for nothing. Look online to see what is being given away for nothing in your neighborhood or check out what free activities are going on locally. Don’t forget to take advantage of group or family deals too!
5. Reduce & Reuse
Reduce your outgoings by being frugal about how long you are spending in the shower or putting on a sweater rather than turning up your heating. Turn off your heat or air conditioning while you are out – there are plenty of gadgets out there to help you manage this remotely if you want to.
Rather than throwing things out, why not think about how you could reuse them?
Takeaway containers can be washed up and reused, rather than just thrown out, for example. This is not just good news for your budget but is also good for the environment.
Cutting down on waste is not the only way to save a few dollars, as you can even get money back by cashing-in on aluminum cans, cardboard and other trash at scrap yards.
It may not be much, but it all adds up!
6. Get Skilled
Learn a few skills and you could save yourself some money too. If you can learn to do some basic chores around the home then you can save money on getting someone else to do it for you. This goes for everything from checking the oil and water in your car to painting your walls and cooking some food. Look out for advice such as free weekly DIY workshops at your local DIY or home improvement store, or even look online for instructional videos on YouTube!
- J. Paul Getty
7. Be Careful With Credit Cards!
Don’t use your credit card unless you are able to pay the balance off in full each month. While credit cards can be useful to build up your credit rating, don’t be fooled into letting your balance build up. You could easily end up spending hundreds or thousands of dollars in interest if you get into debt. Of course, you can be smart with your card and look out for cash-back rewards to actually boost your money – just pay it off. In full. Every month.
8. Save From The Side Hustle
A lot of people work an extra job so that they can buy a few extra things, but why not save the money from your side hustle instead? Whether you are doing a little freelancing, have a part-time job, or maybe sell a few things online, why not save this extra cash or use it pay off any debts instead of spending it?
Jay Leno once revealed how he saved every dime he earned on The Tonight Show, instead of living off his live appearances – explaining, “You know, when I was a kid, I always had two jobs, and I would bank one, and I’d spend the other. Then when I got ‘The Tonight Show’ I just continued to do that.”
9. Sell Stuff You’re Not Using
While it is one thing to reuse things, it is another to keep unused stuff lying around. Why not turn them into cash by selling them to someone else instead? You could do this online or simply by having an old-school yard sale.
However, it is not just your unwanted things that can turn into money, but you could also hire out a room on Airbnb or rent a parking space or garage. If you’re not using it, why not turn it into income?
- Used Book in Good Condition
- Chuck J. Rylant
10. Buy The Best You Can
This may sound counter-productive. Why buy the best when you could buy something cheaper instead? It all depends what you are buying, but generally speaking if you buy the best quality it will last you for longer. This goes for everything from your car to your clothes – unless you’re the sort to want to replace them every two minutes – in which case check out ‘Ignore The Joneses’ above!
11. Get Rich Quick?
Sorry to have to break this to you, but you may be better off ignoring those get-rich-quick plans altogether! Studies have shown that 16% of wealthy people gamble on sports each week as compared to 52% of poor people. When it comes to gambling, the only real winner is the bookmaker – how else do you think they stay in business?
Rather than gambling your money away, you would be better served placing it in a savings account. It may be slower, but at least it is doing something rather than lining the pockets of someone else!
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- Used Book in Good Condition
- Felix Dennis