“If you want something you‘ve never had. You must be willing to do something you‘ve never done.”
The hardest part on your way to financial freedom and wealth will be the first milestone of your money goal. When you have figured out the right strategies it will become easier to make money! Here are some old school rules that are still relevant today.
Do Not Rely On One Source Of Income.
First of all, savings accounts are not made to make you rich. Savings accounts do not have a high enough interest rate to grow and make you wealthy. In fact, savings accounts have an average Annual Percentage Yield (APY) of 0.09%.
As a secondary source of income, many resort to investing. One of the most important things to understand when you are investing is that emotion is your biggest enemy. Fear, greed, frustration and impatience are all emotions that affect our investments. When emotion starts to have a part in how you invest, you will soon find yourself making irrational investments solely based on human emotion.
With that in mind, you next want to diversify your portfolio. Balance your portfolio out with different stocks, bonds, and other investments.
Pay Yourself First.
“Pay yourself first” means that you should pay your own savings and investment accounts first. You are “paying” your future self by saving for your long-term needs and expenses. For example, paying yourself can include:
Putting money into your retirement accounts, such as a 401k or Roth IRA
Buying insurance, including life insurance and long-term disability care
Paying into a health savings account
Creating an emergency fund
Paying off debts
When you pay yourself first, you are prioritizing your long-term financial well-being. Rather than focusing only on immediate needs, such as bills or entertainment, you pay your future self by saving before you do any other spending.
Develop a Moneymaking MINDSET.
If you dig deeper into the stories of wealthy people, you’ll notice a pattern:
Rarely will a wealthy person be able to boil down their success to a single miraculous moment. Instead, they’ll cite their mindset as the biggest reason for their prosperity.
A wealth mindset is a set of beliefs, habits, and behaviors that separates the wealthy from the rest. A wealth mindset will guide you to make the most of the money you have.
But it doesn’t come easy. A wealth mindset means spending less, making wise investments, and looking for ways to improve financial standing with minimal risk.
Never Stop LEARNING And Investing In Yourself.
When it comes to money, investing it wisely and consistently is key to growing your wealth. Just sitting on money in a savings account only offers you wasted years of financial freedom or early retirement.
Investing in yourself will pay huge dividends for you throughout your lifetime. Whether that is monetary value or just improving your overall happiness.
Investing in yourself means you are putting time, money, and other resources into better your current life and also your future. Instead of primarily just focusing on material things, you instead look for opportunities and assets that will raise your knowledge that can make huge impacts for you.
The goal is that you are always improving and building a better life for yourself and your family. By investing in yourself first, you can see an impact on your finances, career, hobbies, and just overall happiness.
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