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Nine Money Mistakes To Avoid And Build Wealth Wisely With Time




There are people who God blesses with wealth in their youthful years who still end up very poor at old age. At the same time, there are people who have very little income who end up being more wealthy than those who earn a lot more than them. In this article, I will teach you how to look at your earnings like a stream of water pouring into a bucket and your spending like streams of water pouring out of it and in the process show you how to grow wealth from the little you earn.

The first thing you must ensure is that what leaves your bucket each day should be less than what gets in. Here are 9 ways to build wealth from the little you earn:




Build A Source Of Daily Income

 You may be earning a good monthly salary. But you need to do more if you want to build wealth. Use that little cash to invest in at least one project that will give you some daily earnings. You can even choose to employ someone to sell vegetables or fruits for you. But make sure you have something that brings in some little money that you can count as income each day. Something should trickle into your bucket each day even if it is 50 shillings.

 Do not Spend More than you make

 If you earn 30 thousand shillings per month then your daily income is 1000 shillings. This means you are not supposed to spend more than 1000 shillings per day. If you have to spend more than that money ensure it is a need and not a want. What you need to do is to invest more of that money into projects that will increase your daily income. Thus you need to save as much as you can and invest in valid projects. If you earn 30 thousand shillings in a month and thus 1 thousand in a day you have to save at least 200 in a day.


This means that you remain with 800 shillings. But then you also need to save at least 20% for an emergency which comes to about 200 shillings. If you are a Christian you need to give 100 shillings for tithes. You remain with only 500 shillings.Thus if you make a thousand shillings in a day you can budget for 500 as the money you can spend.

The emergency funds can help when you need something urgently or when your pockets runs dry. Sometimes your friend might be in dire need and that is where you take cash from to help them.

In short, you are not supposed to spend more than half your income and you are supposed to invest 20%. As you save and invest more your daily income will begin rising and your ability to spend will grow also. Until then, spent only within your league.




Avoid Interest Money

 Do not be a person who enjoys borrowing money that requires interest to be paid on top. It is one way to increase the number of holes leaking money from your bucket. You should try as much as possible to increase revenue streams without opening more holes to make the bucket leak below. It is thus better to start slow than to borrow huge sums of money to start a business on loan. You do not want to be filling the bucket while someone else drinks from the bottom and eats your sweat as you work hard.

 Spend Only What You Already Have

 Someone may promise you money or you may get a gig where you make some extra cash and a person promises to pay you. Do not budget with that money until you see it. You might promise people or take something on credit only to be shocked when you fail to receive the money as expected. This may cause you to dig into your savings or your business money to pay off the debts. You do not want to do this because it might cost you bitterly.

Do not Say You Will Save Later

 Separate the money that you are allowed to use from what you are not allowed to use immediately you receive it. Do not tell yourself that you will do it later because the more you wait the harder it will be to separate it as the money finds more use and continues to reduce.


Research

You need ideas of growth more than you need money. If you have to grow wealth you need to invest your time in finding out new moves that you can take to increase your daily income. This will keep you ready for any opportunity that presents itself. You might be surprised to find out that having a good idea can give you both the capital and the business. All you need to do is to convince someone who is willing to invest that your researched ideas will work.

 Plant your Seeds

 The only money you need to keep in your savings is the emergency funds. The rest are for investing. Plant the seed for you to increase your daily income.

 Do Not Count On Your Debts

 If you lend someone money or anything in your business count it as a loss. If he pays back then you count yourself lucky. This mentality will make sure you lend out money prudently. And when you lend you won't lend too much that can cripple your business.


Avoid Shocks

Friends can turn into enemies. Therefore, no matter how good your friendship is, do not append your signature as a guarantor for a friend easily. You must be truly willing to part with the money at stake if he fails to pay the loan. This is because they can fail you or behave in a way that leaves you in a problem where you have to pay for money that you never used.



 Keep Money At The Right Places

Do not keep all your money at one place where you can access all of it quickly. Keep some money in accounts that you will not be able to access easily. Do not even take ATM cards for these accounts so that withdrawing money from them can be as difficult as possible. Also, walk around with only little amounts of cash that you need for your day's needs.


Paying More Where You Can Pay Less

One habit that is making you poor is going for expensive things where you could get cheaper alternatives. The same bottle of soda one buys for 50 Kenyan shillings is sold at 350 shillings somewhere else. If you pay more it means the holes in your bucket are bigger. You therefore lose more money where others lose less.

The trick is to increase the daily streams that pour money into your bucket. Secondly, you have to reduce spending streams that pour out money so that your accounts keep growing.


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