Building wealth is a lifetime commitment. The money habits you make today will affect your wealth status
It’s not necessarily the profit or salary you make, but it’s how you treat your money that builds long term wealth. Develop these habits today to reap the financial rewards in the future:
- Pay yourself first: You don’t need a lot of money to start investing. Invest a portion of your money, pay off debt then spend what you have left. Link your accounts from your savings account to the investment and credit accounts you have. Debit orders make life easy as they enable you to use the money you are only left with. Take investment packages that make it hard for you to access your money if you feel you are not disciplined with your cash.
- Make saving your habit: You should save at least 20% of your income and increase your saving amount every year to build your wealth. If you are a business owner, open an emergency savings account for days when customers don’t pay on time. Employees and bills are not interested in fiancial hiccups of the business but want the money they worked for.
- Draw up a budget and stick to it: This is the oldest and most efficient method of tracking where your money goes and what you can cut back on to have extra money.
- Eliminate debt: It’s not easy and (sometimes impossible) living without debt, but never use credit cards or debt to fund your lifestyle. Always live within your means and use a big portion of your salary to pay off any debt you have (if you can afford to).
- Cut on the small stuff: Most people are not aware how much they could save simply by bringing home cooked meals to work. If breakfast and lunch costs you close to R100 a day at work, it could amount to R2000 a month. Try to cut off unnecessary expenses and add extra cash to your savings.
- Have multiple streams of income: With the rocketing cost living, surviving on one salary deems to be a nightmare. Use your skills to find another hustle that you can do on the side.
How are you building your wealth?