There are no get rich quick schemes that are going to work. Nor are you very likely to strike it rich based on pure luck. The simple difference between successful people and struggling people is the mindset and how they apply it to cope with their individual circumstances. Providing you’re not facing a crisis that drastically limits your scope of actions, you can start treating money like a successful person and start making money like a successful person.
Thrifty living doesn’t have to mean a frugal lifestyle
First, don’t make the mistake that you can only save money by denying yourself every pleasure in life. Yes, you should avoid habits like using credit cards for lifestyle purchases and impulse buying. But you can make big savings simply by being more watchful for deals and watching where you’re wasting money. Don’t try and cut out every single expense that adds a bit of happiness or relaxation to your life. You’re trying to create a long-term sustainable lifestyle for yourself.
It needs protection
If you’re making money right now, you’re in the position to save, invest, and plan. But you don’t know if that will always be the case. Learn to delay your gratification and instead of making big purchases early, make sure some of your money is going aside to protecting your money. This means getting into agreements like unemployment insurance that make sure that losing your job or your ability to work temporarily is a hassle, but it’s not a huge crisis.
It should work for itself
Your career might be the number one source of income in your life, but making it the only one also makes you vulnerable. As mentioned above, you can protect yourself from that vulnerability, but the truth is that most rich people don’t get rich by working all their life. They invest. Investment properties, lending to businesses, setting up a portfolio of stocks and bonds. The more you diversify your investments, the safer your money is. The more money you put into investment, the more work that your money is going to be doing in your stead. You can start investing even with small amounts. Any progress made is worth it.
It needs work every day
The biggest mistake in getting money smart is taking your time to do it. Every week you procrastinate, that’s potential investment income or protection that you’re missing. You need to make it a habit that you never break to “pay yourself first”. That means setting money aside for long term goals like setting up an emergency fund, getting insurance, putting a deposit down on a home or creating an investment fund first. Before you pay your bills or buy yourself a single cup of coffee. The more you fail to pay yourself first, the further back you set yourself on those goals.
You have to nail the frame of mind you want and commit to it. It’s about setting goals and making habits. When you start doing that, you start seeing real results.