A lot of persons and organizations have said in many writings and speeches that salaries cannot make you wealthy. This may prove true, but there is a clause to it. Having a steady and OR or huge salary does not make you wealthy, but managing your salary correctly can make you the wealthiest. Having a side investment or a support scheme that adds to your earnings can never be overemphasized, but how do you start an investment or a new business without capital? This is majorly why the rich get richer, because money is need for capital to start anything that will bring money into your account. However, money or properties do not fall from the skies or grow on trees. It has to be made one way or the other. The one way (speaking legally) is through salaries or wages.
GET OUT OF ALL DEBTS – Getting all your debts settled should be your first priority. If you try to save for your capital and pay debts (especially a non-mortgage debt) at the same time is synonymous to blowing air into a punctured bag. You might need to block the holes first before you start blowing air into it. Hence, you must first make sure you are not paying any debts.
DO NOT OVERSPEND – It will be very wise of you to live within your means. Don’t buy what you don’t need. Spend only what must be spent and avoid every expense that might be avoided. When you spend all you earn, you will never get to that next stage you dream of. Draw out your income after tax and expenses for a month, rule out things that you can live without and plan to save the most of your income instead of getting hooked in a luxurious lifestyle.
START SMALL – No one climbs a ladder from the top. You cannot earn 1000 dollars a month and expect to save 800 dollars of it every month for a start. The truth is that you will easily get discouraged when you can’t handle the pain of having only 20 percent of your income to spend. That kind of savings may sound good but it is unrealistic. Keep a steady budget of saving 10% to 20% monthly. After a while, you will get inspired by how much you’ve saved and dare to save more.
PLAN TO BUILD FOR A LONG TERM – When you build wealth for a short period and clear it all out for spending, it doesn’t really have much effect on your general wealth. As a matter of fact, you will spend it all and be back to square one. Save for a long period and invest in long term businesses, the Return On Investment will wow you.
PROTECT YOUR WEALTH – Insurance is never a bad idea, as long as you have the right insurance. Make sure to protect your wealth by getting insured for periods that you may be ill or unemployed or be going through a trying time. Insurance is key.
Your salary can make you rich, but that’s only if you know how to build wealth with it.