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Simple Ways To Actually Grow Wealth

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Attention; Please don't forget to like and share with family and friends. Also I will like you to read this article from beginning till end. A comment on what you think about this article will be highly appreciated.

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To grow wealth isn't difficult, and it isn't stressful or at least it doesn't have to be. In this article I am going to introduce to you some simple ways you can actually grow wealth. Here goes;

1. Good and Bad Debt; Yeah there are (2) types of debt of which most wealthy people have figured out long ago.

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Good debts makes you wealthy but, bad debts makes you poor. It's all about the purpose of the debt. For instance; When people get loan from banks, majority spends it on liabilities. But to become wealthy you have to learn to spend loans on assets.

Liabilities takes money away from you like expensive phones, shoes, bags, etc. Which then makes it more difficult to pay back the loan. But;

Assets brings money to you let me give an example; Someone got loan from bank and spent the money in building a House, and then used that House for rent so as the rent payment comes in the person pays off the bank loan, but after paying the loan more money keeps on coming that's an asset.

2. Grow up and start budgeting; There is a saying; "Never spend your money before you have earned by Thomas Jefferson". Having money is just a matter of spending less than you make.

There are lots of complicated formulas for budgeting but the simplest is following the 50/30/20 rule. Which means;

Spend 50% of your income on expenses that don't vary that much or that does not vary at all from month to month like; Housing, etc.

Spend 30% on variable expenses like groceries, gas, etc. which can vary significantly with time. And;

Use 20% of earnings on savings.

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Once you have your data, look for "spending leaks". Spending leaks are places you don't realize you're spending money on. It mostly leaks on food related items.

3. Learn to distinguish between your wants and your needs; Your needs are essential things you must have for survival like food, shelter, etc. While your wants are unessential things you get like; The latest phone & Cars, most expensive dresses, etc.

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Majority of people spend most of their income on wants because, well we all love to buy new things but we just have to learn to control ourselves. But if for any case you just have to get that thing you want then you will have to make some changes in the budget rule from 50/30/20 to 50/20/20/10 where the 10% will be savings for that thing you want.

Additional tip; "Avoid high fees" because, this can draw you back significantly in your aims of attaining wealth.

Summary; in this article 4 different ways to actually grow wealth was discussed which are; good and bad debts, budgeting, knowing what your need and wants are, and Avoiding high fees.

*.*.* What do you think about this article please say in the comment section below and also don't forget to like and share with family and friends.*.*.(Olarinde Awwal)

Source: opera.com
The views expressed in this article are the writer's, they do not reflect the views of Opera News. Read more>>
Top Comments
Awwal02 · 06/25/2020
Nice Thanks for the information
RAWLINGS10 · 06/25/2020
Nice information. know the difference between this terms and actions to take will help guide your finance properly
GodwinMatthew_01 · 06/27/2020
very gud piece
olarindetitilayo · 06/27/2020
Thanks for the info

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