8 habits that will help you to be rich with a small salary

Some of the tips are to live as rich “anonymous,” get rid of debts and increase profits.

The difference between life under financial stress and one of prosperity is in the small habits we have about money. Business Insider consulted with specialists Nancy Butler and David Blaylock, who work in the area of financial planning and structured an eight-step plan that will help you to economise and use money wisely.

Know what small changes will direct a prosperous future.


  1. Reverse your thinking

If after paying the bills your net remuneration seems anemic, you need to learn to allocate a portion of that money for your financial objective, which does not happen overnight. That is why it is necessary to adapt the mind gradually. “Many people spend money, pay bills and keep what is left over, and it is quite the opposite: one must first save for financial goals, pay bills and then consider spending the remaining money, “Says Butler to the Business Insider.

One trap that many people fall into is to wait for their finances to be looser to save. The mistake is that the more you earn, the more you spend. Blaylock warns that it is not necessary to save too much, the important thing is to economize. “I’m not asking you to save too much, but maybe a small portion of salary. We can not underestimate the power to start small. ”

  1. Look where you want to go

Financial specialists always suggest to those who are saving for the future, start with a five-year plan with concrete goals. It consists of knowing what you need to achieve your goal within a particular time, which need not necessarily be five years. “Having a goal in mind helps us,” says Blaylock. “If that goal is to save for an emergency fund, for a trip or for education, it does not matter,” he says.

  1. Create your own mental tricks

Like the first item, we should start little by little. Stopping eating frequently in restaurants or limiting monthly spending on unnecessary items may be one of the new rules. Also known as “heuristics,” which is a way to solve a problem, which in this case is the habit of saving money, is an optimal method to develop healthy habits concerning our life. Many decisions we make in a day can help us not to spend money on unnecessary things.

  1. Live as rich “anonymous”

Not all millionaires live in a mansion or drive a Ferrari. By the way, most of them lead a life below the model. According to Thomas J. Stanley, co-author of The Millionaire Next Door: The Surprising Secrets of America’s Wealthy, millionaires do not waste money, they save more than they spend.

The book shows that most of the wealth of the United States comes from hard work and savings. David Sapper and his wife, for example, bill more than $ 500,000 a year with a used-car business. However, they do not afford to spend more than $ 2,500 per month. By allocating 90% of investment income, Sapper says he can retire early. “Find the point where you have what you need, you are happy and comfortable, and stay there,” advises the businessman.

  1. Worry about your retirement now

For people between the ages of 20 and 30, retirement may seem far away so it may not be a priority. Among accounts payable, overheads, savings to finance a rental house, is it still possible to set aside retirement money? The later you stop saving money, the more you will have to meet.

  1. Know when you are entering and leaving

If you are not sure how much you have deposited monthly in your bank account, you will not know how much money you can spend to meet your financial goal. It is necessary to know their expenses to be able to control them, because “knowledge is the first step to lasting change.” If you have trouble giving your paycheck and organizing your economy, there are applications like LearnVest that can help you for free.

  1. Get rid of debts

Certainly, at some point in our life, we have had to deal with debts such as student loans or real estate financing. These are understandable and often necessary. Credit cards, on the other hand, with which high monthly fees are paid, can be avoided.

Paying off debts should be the number one priority. Despite this, for Blaylock, it is worth saving some of the money reserved for debts. Even delaying more to pay the credit card, for example, is proven to guarantee money for the emergency fund. In the event of an unforeseen event, such as a car accident, you will not need to borrow again to repair it.

  1. Increase your earnings

To increase your net worth, you should spend less and put more together. The question is not to have a higher salary, but to know how to invest the money. “Most of the time, earning more does not lead to higher net worth, because lifestyle and expenses increase along with this,” says financial planning consultant Natalie Taylor, Blaylock’s partner.

But for those who do not manage to minimize enough expenses to raise money, there are some ways to increase monthly income without a raise in salary or without winning the lottery. One suggestion is to look for another job, which is preferably related to your personality.

“I have a great friend who is a lawyer and enjoys traveling. However, she is not willing to leave this habit aside, so she works at a flower shop on Saturdays during the wedding season. It is a win-win for everyone, because the flower shop has a trusted employee and, as my friend loves flowers, she does not think of it as work, “says Blaylock.

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Thanks for the tips to increase my saving
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