How Can I Get Rich?

By: Chris Crowe

3 Simple but sure way on how you can get rich. It might sound easy, but mastering these 3 ways is one of the toughest to do. Hint, Hint. To get rich, it is not about how much money you make, it is about how much you save.

How Can I Get Rich

1) Save, Save, Save
Okay this one seems obvious but if it is so obvious, why do most people ignore it? Well, the truth is that life is expensive and problems or emergency situations arise that drain our bank accounts. 

It does not matter how little you decide to put away for the future. For young people, the biggest factor on your side is time. Small amounts of money add up over time, and if you factor in compound interest, the twenty bucks a paycheck you put away can turn into a nice chunk of money. A smart and easy thing to do, if you have direct deposit through your work, is to have some money automatically diverted from your paycheck into a savings account. 

2) Pay off your Credit Card Debt
The interest rate on credit cards can be up to 22%. That means if you carry $100 on a bill over into the next month, you will now owe the credit card company $122. In that situation, you would have lost yourself $22.

No matter how much those credit card commercials claim they can improve your life and make it more enjoyable, the credit card company is not your friend. They want your money. So pay down your debt as soon as you can and before you put money in savings. 

If you are paying 15 percent interest on a bill to a credit card company and at the same time are only earning a 3 percent return on money in your savings account, it makes sense to pay off your debt first. The amount you owe will easily eclipse what you are earning.

If whatever interest you earn is less than the 15 percent I use as an example, then whatever you are earning is not really earnings. Your net profit will still be negative. Get rid of credit card debt so you can start really saving money. 

3) Use your credit card wisely
A credit card is essentially a card that allows you to take a loan out of a fixed amount of money, your credit limit. Do not use your credit card when shopping or going out. These are not essentials and you will tend to overspend when you swipe your card. 

4) Do not spend more than you make.  
This is pretty obvious but many people spend more than what they make. Some even go to the extend of taking personal loans to cover their shortfall. 

  • Make your own coffee ($10) instead of going to Starbucks ($5 per latte x 20 day = $100) or make your own coffee several days a week and reward yourself with that Latte on Friday.
  • Take the Bus or MRT to work

People often feel burdened by their lack of money and feel that they spend it before they have it. Most of us spend everything we have. Just when we have managed to save a little bit of money, we want to buy new clothes, or take a trip somewhere.

How Can I Get Rich
It is not easy, but is well worth it.
Thinking about where your money is going, make a few minor adjustments to help you save and soon enough, you will get rich.

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