Rich people usually build their fortune in the long term and live below their means.
Portrait of the rich.
They do not necessarily earn a big salary.They spend less money than they earn.They save a lot and make their economies grow.They manage their finances carefully.They seize the investment opportunities or business as they arise.They do not lead necessarily a luxury car.They can live in a modest house.The nine rules to follow
1.Live below your meansLive with less money than you earn. Test by spending as little as possible for a few months: you will discover with what minimum income you can be comfortable.
2.Stop wanting to impress others.Be convinced that being financially independent is more important than to look prosperous.
3.Make a budgetFollow it to the letter every week.For more informationSee page Make your monthly budget.
4.Save systematicallyAttach action to spare in your budget. To do this, subtract your net income a fixed amount you deposit each week or month in investments that let you grow.In addition, for each pay, try to allow 5 to 10% of your net income for your emergency fund. The sooner you start saving, the more it pays off.
For more informationSee How to save.
5.Avoid Debt.You will not pay interest unnecessarily and you stay in control of your finances.
6.Manage your assets carefullyConsult a financial advisor to invest your savings in the right places.For more informationRead the section Invest according to your needs.
7.Protect your income and assets.Protect your income with disability insurance, health insurance and life insurance.Protect your property with home insurance and car insurance.
8.Adopt good habits.Allow extra time to take care of your health, because it is your greatest asset. This will maintain your ability to work.Maintain your physical assets to extend their duration.Use what you already have. Do not buy just for fun.Avoid spending money on services that you could run yourself.For more informationSee drink responsibly.
9.Change your buying habits.Do not go strolling through the shops.Please list your real needs and plan your purchases in advance. Save the money for your purchases instead of borrowing it. You will have time to target and deals you will not pay interest.Buy used auto, furniture, clothing, etc.. Any new object loses value right out of the store: do not assume this loss! To learn more about the money you could make by buying used cars than new ones, see Buying a car.Create a network for sharing with family and friends and cheaply renew your records, books, clothes, etc..Make barter for some services.