Tip No. I: Learn to Manage Your Money/Salary/Spending with Technology
Before you can build wealth, you need to properly manage the money that you already have. Use technology in order to track your spending habits and monitor your financial health as a whole. I use this however, there are tons of tools out there to chose from, like this one. Mint is a financial tool that you can get on your smart phone, tablet or even visit on the web. And the best part? It is 100 % FREE! This can sometimes be the hardest part. Learning how to avoid over-spending. Learning how to say “No” to things that you don’t need (but want). But it is a necessary evil. You have to get disciplined. For instance, do you ever look at how much money you make a month Vs. How much you spend a month? If you are spending more than you make (via credit cards) that is a real problem. You will never be able to save. So let’s say you make $3000 a month and all of your bills (rent/ mortgage, phone) amount to $1900 a month, you will still have $1100 left as “spending” money. Instead of spending this money, why don’t you save it? If you cannot save all, save $700 of it and leave $400 for random things like going out to eat with friends, shopping etc. That is $8,400 that you can save in just 12 months. But without a budget, you could potentially waste all of the money away. Now imagine if you were disciplined enough to save the entire $1100 a month? You would have saved $13,200 over a 12 month period. which would you rather have in your bank account? You may ask yourself why? what’s the point? Well, just like my example above indicates…You can save $1100 a month or look at is as saving 13 grand a year. which motivates you more? which makes you want to reach the goal? The latter right? This is what I do when I am saving money. I calculate how much my end of year amount will be and sometimes I even calculate what my 5 year savings would be. I do it just to get myself hyped up about the goal and It works like a charm. You can even go the opposite route for expenses. Let’s say that you are considering the purchase of a car. Let’s say the car note is $400 a month. That’s $4800 a year. Cars can get expensive. You might think twice about buying the car if it could cost you more than you expected. That $4800 could be saved or used to invest. Looking at things/numbers over a period of one year can help you make wiser decisions about your money.
- Do I really need to explain this one? Out of sight out of mind. When your money is not easily accessible, you’re less likely to try and access it. If your bank is in another part of the city and you have to drive 25 miles to get to it, chances are you will leave it alone. This is a great bank for these purposes. Mo Discipline, Mo Savings, Mo Money. Period. Ha!
- So, now your bank account has swelled up and you are thinking about what to do with your fortune right? well, studies show that home ownership is one of the best ways to grow your personal wealth and stake in the American Dream. Whether you purchase a Condo, a Townhouse or a traditional one-family home, It should work to your benefit. However, make sure you do research about the area you want to buy in. My old Neighborhood, (Williamsburg Brooklyn), is consistently listed as one of the top neighborhoods in New York City! Whooooo Hoooooo! one time for WillyB! I purchased my first home in 2009. Not to over endorse Brooklyn to the point of no return but, Brooklyn’s real estate market has grown substantially. If you purchased a home in 2008, (at the height of the market crash), chances are, you are sitting on some fat equity! If you know me, you know my deep love affair with Brooklyn. I did loads of research before I purchased my place. I look into the demographics of the neighborhood. What the median income was for those that lived there. How long homes sat on the market before they were sold etc. Why? Because I wanted to know what kind of market I was getting into. I wanted my money to work for me.
- If you own your own home, renting it can bring in annual income. and who doesn’t love secondary income?
- If you are trying to make quick secondary income, using your GOD given talents can prove much easier than trying to re-invent the wheel. Do you love to cook? Why not start a catering company? Are you really awesome at transforming women with your makeup skills? Why not become a makeup artist for brides on their wedding day? Do you know how to sing? Advertise so that you can sing at weddings and get paid for it. Are you an artist? offer people original paintings commissioned by you. Are you good with a camera? Start offering your services to people at your church or mosque so that you can build a following. Are you a graphic artist? Show your talents by doing logo and web design for folks who are looking for those services. Starting a business isn’t easy though. I have some tips on that here. But once you start a business and become an entrepreneur, you will find that your goals start to become more attainable as you continue to discipline yourself. Remember to ask yourself, “What am I naturally good at?” and “Can I use this talent to generate income”?
- One of the most important financial decisions you will ever make is Getting Married (more specifically who you get married to and when). By putting off the walk down the aisle for a few years, you can save yourself some frustration (although you can get married if and whenever you want). Before you start thinking about your life partner, you should think about how you can become financially independent all by your lonesome. With good credit, little or no debt, and have your investments in order. Once you have yourself in good standing order, only then can you build a solid foundation with another person. Then neither of you will be a liability to the other. You will actually be assets to one another. Both of your success rates in building wealth with be drastically improved by beginning your journey on a level playing field. Remember, financial trouble continues to be the number-one reason for DIVORCE. Get yourself right before you enter a marital union.
- What I mean is to save your money before it hits your bank account. If the company you work for has a direct deposit program, enroll up to 4 different accounts so that the money from your paycheck goes directly to that account before it hits your hands. you are more likely to reach your savings goals when you can’t see the money. 🙂
- You have got to keep your eye on the prize. Plant a seed of relentlessness. Don’t let anyone or anything distract you from your Year-end goal. remember that you need to start thinking annually not day to day or month to month. Stay Focused on the year-end prize!
- It’s true. Money costs Money. You have to Invest in order to get a Return On Investment (ROI). If I want to have a successful photography business, I need to invest in the latest technology and equipment in order to keep up with what will allow me to provide top notch services. Also, if I want to have millions of dollars in my 401K retirement portfolio as an Engineer, I need to make sure I am contributing at my max so that my company can match it. It takes money to make money folks! so invest wisely!
- I cannot stress this enough. Work Hard. Play Hard. Of course the goal of this post is to show you different ways to grow wealth and keep your personal finances in line. However, you have to have fun as well. Each time that you reach a financial goal or milestone…Celebrate! Enjoy!