Make Money: 10 Key Actions to Change Your Life
If there was a magic formula or tip for making money that always work, there would be many more rich people in the world. Each story is a story when it comes to evaluating financial life.
But the fact is that, some actions are essential for each one of us to not to stay out of money, take good control of money and still be able to save.
About making money
Well, the first point is about making money. Unless you already come from a wealthy family and have an inheritance or you win the lottery or something like that, the money shouldn’t appear in your account out of the blue. That’s why you have to win it, right?
Here are the 10 points you need to focus on:
(1) Earn money with a steady job
Most of the people who can save money take advantage of the fixed income that comes from a job. When you know exactly when you will receive it in the month, it is easier to plan and save, which does not mean that only in this way it is possible to do it. But, obviously, it gets easier.
If you fit the profile of people who like to work for a single company, try to make the most of the revenue you earn, and also invest in what it takes to become a better professional and earn more.
(2) Earn money by doing business or being a freelancer
There is also that profile of a person who does best by doing business or freelancing. In this case, the revenue varies a lot each month, so it is necessary to have even more financial control to keep more in the months when the revenue is more positive, and spend less in the months when it is less.
The ideal solution is to invest in frequent networking and work with different sources of revenue, i.e., multiple customers instead of just one. This way, if you lose one, you’ll be able to catch your breath until you get one that replaces in terms of revenue.
Check out: Tips to earn extra income
(3) Earn money by investing
Making the money work is also about winning. In other words, you work, but you need to know where to put the money so that it grows and does not lose value. In short: you have to learn how to invest.
In this case, always learn what you can invest in, get information about different types of investment, listening to experts, etc.
(4) Living with less than what you earn
A fundamental action that must be taken to life is related to standard of living. The worst hypothesis, in this case, is to spend more than one earns and get into debt. A more reasonable hypothesis is to spend exactly what you earn, without getting into debts. However, for those who want to earn money and invest, it is essential to spend less than they earn.
The best tool to make this work is to lower the standard of living, living with less than your monthly income allows. Many people spend a lot of money on non-sense stuffs and have tremendous fixed expenses. Evaluate if it is really worth keeping the cost of certain things. Or if they are not so necessary, it is the only way that you will be able to save more.
(5) Make money by cutting costs
In addition to the previous point, let’s talk about cutting costs. If you lose part of your revenue today, what would you do? Reduce costs, right? So why not start now to use the money you have left in a smarter way? What expenses would you cut?
(6) Make money by reducing expenses
If you can’t cut costs, why don’t you reduce them? It is worth evaluating all your fixed costs to check which ones could be replaced. Often a phone bill could be 30% less.
Often an online newspaper subscription could reduce the cost of a paper subscription by 30% as well. Swapping the place to have coffee once in a while (opting for a cheaper one) can also help reduce costs. Bottom line is to evaluate what you could do!
(7) Don’t be emotional
Finally, let’s talk about emotional aspects which are the most important. That’s because there’s no point in earning a lot and even getting raises or extra income, if you keep acting emotionally bad.
We know that nobody does certain things because they want to. And it is really very difficult to get out of certain standards, often requiring the help of professionals. But it is important to be aware of what happens!
(8) Buy on impulse
Buying on impulse is one of the action that ruins your pocket the most. There is no point in saving, having goals and plans, if at the slightest sign of emotional discomfort you burn the money saved.
Think about how long it took you to save that money that will be spent in 5 minutes. Best is to leave your credit and debit cards at home, if necessary.
(9) Taking care of self-esteem
It may seem irrelevant to this topic, but there is a purpose of including self-esteem here. Because when we like ourselves and we are happy and right with the paths planned for our life, it is much more difficult to leave the trails and have emotional breakdowns that hurt the finances.
Invest in self-knowledge, take care emotionally and study about it. It’s as important as knowing about investments, savings, and many more.
(10) Beware of toxic people
You should be aware of toxic people around us, because they can also contribute to lack of money at the end of the month, the absence of our emergency reserve and even the fulfillment of our dreams.
Beware of people who suck frequently, asking for money for non-emergency issues, asking for your name and your goodwill for taking loans, asking for things of value that will prevent you from going down the planned path. Use common sense in this case.
This article has been written by Chandra Mehta.
Chandra is a seasoned banker with 35+ years of experience in banking and financial services industry. He’s a retired banker and has served as Chief Manager and Assistant Vice President in State Bank of India/or its subsidiaries.
He has authored many articles on this site (allonmoney.com).