How to become rich and stay that way! Well, its a fantastic idea! Before we discuss the ways in which you can make yourself some serious money and stay that way for life, take a moment to absorb the shocking statistic that 68% of people in the USA live pay check to pay check, and 26% of people in the States have no emergency savings at all. To learn how to become rich, and avoid these pitfalls, you’ll have to work hard, learn how to manage your money better, and finally, be prepared to take some risks.
How to become rich: SMART Goals
The first step towards securing your financial future is to make SMART goals. A SMART goal is:
- Specific – What is your goal? Is it specific enough or is it too broad? What needs to be done for you to achieve your goal? Why do you want to reach your goal?
- Measurable – How can you measure your progress? How will you know if you’re on track?
- Attainable – Is this a goal that can be achieved?
- Realistic – Can you achieve your goal? Is the goal worth it?
- Time – What’s your time frame for reaching your goal?
Figure out what being rich means to you and turn it into a goal ensuring that meets the SMART standards outlined above.
Budget is Best
How to become rich: Budget your earnings! Did you know that more than 60% of households in the U.S. do not follow a monthly budget? Creating a household budget outlining all the expenses you have coming in and going out of your pocket is a sure-fire way not to overspend. Create your budget every month, either by hand or by using an online template, always being sure to include the following expenditures:
- Home – Mortgage, rent, utility bills, insurance, taxes
- Car – Monthly car payment, gas, insurance, license plate fees, etc.
- Television, cable, Netflix, Hulu, and other entertainment services
- Cell phone & internet
- Food – Groceries, eating out in restaurants
- Entertainment – Movies, social drinking, concerts & theatre, sporting events
- Charitable donations
- Health insurance
- Miscellaneous – Pets, childcare, school trips, birthday gifts, etc.
The key is that you should be making more than you are spending. A budget can also help you realize which things you can cut out, and areas you can put more savings into.
Once you realize why you are in debt or why you keep getting back into debt, you can then figure out how to eliminate it once and for all. The most successful steps you can take to get rid of your debt are:
- Stop adding more debt to your balance. Cancel or freeze your credit cards and think twice before you make any further purchases.
- Decrease your spending and expenses. Search for more affordable options for your utilities and other services and cut back on all treats including eating and drinking outside of your home.
- Work more than one job to make more money so you will have extra income to pay off your debt more quickly.
- Always pay more than the minimum on your debts each month so that you can lower the amount you are paying towards interest.
- Whenever you get an extra few dollars throw that money at your debt. As its additional income you are unlikely to miss it.
Stop Outsourcing to become rich!
There are lots of things that you may pay other people to do for you without giving it a second thought. Save money by undertaking these tasks yourself. Some of the most common things people outsource to others that you could be doing yourself are:
- Cleaning your home
- Mowing your lawn
- Getting your groceries delivered
- Having a professional expert do your taxes
Check On Your Interest
Most people probably don’t even know what interest rate they’re getting on their checking and savings accounts. That’s because it was likely years since you opened the account and you simply forgot what that rate is. Check what rate you are getting and start shopping around for the best rate on the market. Don’t worry about company loyalty, move your money to the account with the highest interest amount on the market.