The following is a guest post.
While money is not the most important thing in the world, still most people will agree that lack of it can make life really tough. After getting married and having kids things can become more complicated, since your financial needs will grow.
Research says that financial problems are on the top of the list of reasons for divorce. This doesn’t mean that you will get divorced if you have financial problems, but it only means that you should pay attention to that serious problem.
In this post I will tell you about five tips that will improve your financial situation and help you get out of debt.
5 tips that will help you become wealthy
1) Live below your standard: Ask any billionaire you can reach out there how he collected his money and he will tell you that one of the keys to making money is living below your standard. Living below your standard means buying a small car when you can afford to buy a big car. Buying a big car when you can afford to buy a bigger one. And buying an expensive car when you can afford to buy a private jet!
2) Invest: You might be wondering, why would a person live below his own standard? Life won’t be joyful after all. The answer lies in the second point which is investing. When you live below your standard you will have an extra amount of money to invest. When you invest your money correctly you will start to get additional income that will enable you to buy the things you need.
3) Never finance a lifestyle: Debt is ok as long as you put the money in the right price. It’s completely ok to get a loan to start a new business but it’s not right to get a loan to buy a new car. In short, financing your lifestyle should never be done through debt, else you will never get out of the debt cycle. When you finance an investment, you are very likely to get out of debt and even make profits, but when you finance a lifestyle you will only accumulate more debt.
4) Have more than one source of income: Warren Buffett, one of the richest people in the world, said that the best thing you can do for yourself is to have more than one source of income. I know your time is limited so don’t get me wrong. You don’t have to do 2 things at the same time but you just need to make sure that you make any other good investment that can bring you profits in addition to what you do for a living.
5) Start a low risk, high return project: Thanks to the internet, the old risk/return model has become obsolete. Earlier you had to invest a lot to earn a lot. Today you can start a low risk business such as a website, then make lots of money out of it. With an investment that is as low as 250 dollars/year, some people make thousands of dollars each month. It’s the internet age! Why don’t you give it a try?
Farouk Radwan is a full time blogger who makes a living through his personal blog. He is the founder of www.2knowmyself.com a website that helps people understand themselves in a better way.