How to Grow Rich on a Meager Income

How does one become rich on a meager income?  It was once said that a man [or woman, for that matter] who works for somebody else, will never, themselves, become rich]. And, if you do happen to work for somebody else, on a meager income, then the best way to grow rich, is to let the money work for you – rather than the other way round.

But this is easier said than done.  Indeed, how many of us allow our money to take control – instead of being in control ourselves?  This is, in fact, the quickest way of getting ourselves into debt. There must be a new frame of mind, new thought processes must take over if you are ever to turn what little you bring in, into something more substantial.

So, what you must do is decide on how you can make your money work for you. Well you must first look at the differences between the rich and the not-so-rich.  For instance, did you know that if you are a low-earner, you ‘pay’ interests?  Whereas, if you are a high earner you ‘earn’ interest.  Do you see the subtle difference there? The rich earn interest by the day, while you have to pay whatever interest you have accrued on your credit card/s or catalogues.

In fact, if you use your money in the right way, it can become the ultimate tool to help you bring in even higher earnings.  One of the most obvious ways in which you can make your money work for you is to budget. How much are you spending each day?  How much income are you bringing in? What is the net total at the end of the week or month that you are left with in your hand?  What things can you save on, and what are the things that you really do not need?

If you are spending money on items that you know you will not use regularly, than why spend it?  You might as well give your money away, because that is good money down the drain. However, if you are spending money on the things that you do need, that is a different story. Spending money on the things you need will help you gain money in the long run.

Cut down on any electrical appliances that are wasting energy [especially those appliances that are broken in some way]. You will find that faulty electrical appliances we eat up your electricity more than those that are in perfect working order.  Thus, you will then be spending more on your electricity bill.

Purchase for yourself a wireless electronic monitor. Connect this to your electricity meter. This will measure how much electricity is being used up in your home. The large LCD [Liquid Crystal Display] will show you, in monetary terms, and also in wattage, where you could be saving on electricity.  Purchasing a wireless electronic monitor will save you a tidy sum of money in the long run.

Cut down on all the unnecessary things you do not need. In other words, cut out the waste. Why do you need two, or three credit cards where one will do?  Why do you need two or three cars? Why do you need a big car that eats up fuel, has high insurance premium – and which you pay a higher road tax? Get yourself a smaller vehicle, one that is economy size. One in which you are not paying so much in insurance, or fuel.

Better still, get yourself a bicycle. much better for your health, and money. In fact just watch the savings you will make if you decide to travel by pushbike, rather than a car. No insurance to pay, no road tax either.  You can park virtually anywhere you wish.  investing in a pushbike now, could save you a hell of a lot of money in the future.

Growing your own fruit and vegetables in your garden, allotment, or backyard., shopping in your small local stores; looking out for bargains wherever you can find them. There are literally numerous ways in which you can make your money work for you.  There are so many ways to make your money work for you that, in fact, once you have sorted out, and paid off all of your debts, then it is time to begin to save.

But, you will save in a different way. The word here  is ‘aggressively’.  Begin to save more aggressively than what you have previously done before. Perhaps you have not had the chance to save at all, what with one bill on top of another?  But, now is the time to begin again.  You  are now out of debt and debt free. so there should be no excuse.

For the first time, you are looking for ways in which to invest your time in order to make money, rather than spending it. Open up a new bank account, and into this account put in as much money as you possibly can. Do not touch this account – other than to place money into it.  What you are looking for here, is for your money to begin to earn interest for you – rather than you, having to pay interest.

Putting  large sums of money into an account every week, or at the end of every month, would mean that your money will soon grow. The interest you earn on your large savings, will soon outstrip the net wages you are earning]. Putting yourself into the frame of mind of saving aggressively, will help you in the long run in building up your finances.

Once your finances begin to earn interest for you, then need to think about investing your money for even bigger returns.  Study the market, because investing money is the first step on the financial ladder to building wealth.  When you invest, what you are doing is allowing your money to grow and prosper.

 Instead of leaving your money in the bank, investing your money increases your chances even more, of gaining more larger returns. But stocks and shares is a game of chance, so you must always beware of this before you venture. Yet, knowing your market can yield dividends for you

Remember, you must always make your money work for you – rather than the other way round. Obviously, it would be better to invest, once you have got yourself out of debt. Once you have achieved this aim, then the next aim should be to either place your money in a high interest account [where it will earn for you], or investing your money.

If it is your first time in investing, then the best course of action you can take is to get yourself a financial planner who will help you to achieve the goals you want. When investing, it is always better to invest more than one share in stocks.  Never place all of your money on just one thing. That would be a bad error of judgement. You would have to be extremely lucky indeed if you made any money at all doing it that way. Instead, invest your money in at least seven or eight stocks.

You can do this by using mutual funds. By using mutual funds the risk is a lot lower than it would normally be. Mutual funds is good for those who are thinking about investing for the first time. Because your shares would be spread out among seven or eight stocks, the risk would be far lower.because if one stock failed, another would be sure to grow. Learn how to study the market, and how to make stocks and shares work for you. 

Below this article are links that you can click. They will give you all the information you need to know about savings,and stocks and shares.  I hope all who read this article find it of use in your attempt to make your money grow, and work for you.

A Beginners Guide to the Stock Market

Banking and saving

Free Financial Advice