Simple Tips That Will Help You Build Wealth

Lack of money leads to suffering, but money does not guarantee happiness. Strive for the golden mean. Today we are sharing tips that will increase the amount of money in your wallet.

28 Simple Tips That Will Help You Build Wealth

1. If you convince yourself that you need a thing, do not buy it. One of the main financial mistakes is to buy unnecessary things. We often do this: we buy new clothes, a phone or a computer just to keep up with others and feel fashionable. But most of these things are not really needed. When something is really necessary, you understand it right away. If you have to convince yourself before buying, do not take this thing;
2. Do not buy the first models. When you see a new model of a car, camera or smartphone, do not rush to buy them. Wait for the next version: it will be improved and deprived of problems or shortcomings. You will protect yourself from excess headache;
3. Do not skimp on what makes you happy. Money can buy happiness if you spend it on impressions and things that matter to you. If they delight, inspire and motivate – these are necessary investments in your well-being. Just remember that the pleasure of things goes faster than the impressions. In just two weeks, we get used to new things and stop noticing them. Impressions please you much longer. You can mentally relive them again. In addition, they help us grow and develop new skills;
4. Earn more and spend less. Many people start spending more money after their salaries have been increased. They buy an expensive car, travel more often and eat in a cafe. As a result, they do not become richer but remain at about the same level of affluence. But if you earn more and spend less, you will have free money. You can put it in the account or invest into something. Think about how you could earn more: take additional responsibilities at your current job, find a part-time job, engage in freelance work. Then think about how to spend less. For example, cook at home and go to cafes less often. Spend less on clothes. Sell your car and use public transport. Do not chase the latest trends. Use the remaining funds to pay debts or save up for something;
5. Never get into debt. No matter how rich you are, if you have debts, you are a slave to the banking system. To pay them and maintain the necessary standard of living, you have to work (perhaps at work that you don’t like). Therefore, never borrow. If you are planning to open your own business or creating some kind of project, but you need to get into debt for this – postpone this venture. Start only when you can pay all the expenses yourself. You risk less this way. And yet the lack of funds forces us to seek a creative approach to problems;
6. Learn not to want more than you already have. Being rich does not mean having anything you can imagine. True wealth is when you do not need anything other than what you already have. Even a billionaire can be poor if he or she constantly needs more and more. You can own real estate all over the world, but if your friend has a private spaceship, you will still be jealous. We feel that something is missing when we compare ourselves with people richer than us. Instead, compare yourself to those who are poorer. Then your current lifestyle will seem sufficient to you;
7. Look not for the ideal but good enough. We always strive for the ideal, we want to have all the best. But think, do you really need the best car, the most powerful smartphone or apartment in the most respectable area? Try not to use the phrase “best” for a month. Observe how your attitude to shopping will change and how much money you save;
8. Do not buy many things from one category. Living is much easier if you have one phone, one computer, one pair of casual shoes. In clothes, you can limit yourself to one type of trousers, shirts, socks. You will make fewer decisions, be less nervous, and spend less money. Look at your stuff and think which 10% of them you use 90% of the time? Try to get rid of all unnecessary. Sell, donate or throw away extra items. You will feel relieved, you will be able to devote more attention and energy to important matters;
9. Change your environment to consume less. The environment affects how much we consume. When all around often change gadgets and cars, buy new clothes and have dinner at a restaurant, it will be difficult for you to resist. If you want to spend less, try to change your environment. Naturally, it is not always possible to move to another district or city. But you can change the way of life. Go to shopping centers less often and avoid everything that makes you want to buy something;
10. Fence off advertising. We don’t even notice how advertising changes our idea of a product, making us want it. Avoid it in every way. Do not watch TV, do not read magazines, turn on ad blocker in the browser. Unsubscribe from newsletters. Buy paid versions of apps to turn off ads. Try to isolate yourself from advertising for a month. Then evaluate whether you began to think less about purchases. And check how much you saved during this time;
11. Invest in your development. The most important thing is not to invest in the stock market but in yourself. Books will help you. Most often, a book is a squeeze of the author’s ideas in a few years or even in a lifetime. This is an opportunity to learn about the lessons that the other person has learned and apply them to your advantage. The more you invest in expanding knowledge, searching for new ideas and developing a creative approach, the more you will benefit. If you draw at least one new idea from the book that will inspire you, it means that you have not spent your money in vain;
12. Ensure your own financial stability before helping others. If you have financial difficulties, do not lend it to someone – even a family member. You will worsen your situation and in addition spoil the relationship. You’d better not lend money to friends and family at all. If you want to help them, give them for free. Only this way will you maintain a good relationship. But help them when your own financial situation is stable;
13. Do not invest in stocks. You will not get rich on them. Professional traders often act at random. Even if the value of your shares grows by 30%, the profit from this does not compare with the profit from investing in yourself. Having gained new skills, you will earn more. Think about how such an investment can help you get rich. Maybe you should take some courses, sign up for a seminar, or start your own business;
14. Do not risk in vain. It is believed that entrepreneurs like to take risks just for the sake of risk, but this is not true. Good businessmen carefully consider their actions and do not allow situations in which they can lose all the capital. If you are planning to start your own business or invest in something, do not forget that you can always fail. Get ready for this and make sure that you don’t lose all your money;
15. Strive not for wealth, but ensure that you do not go broke. If you are a business owner, focus not on how to increase profits, but on how not to go bankrupt. If you are an employee, consider how to stay fit. For example, you can acquire new skills or expand your responsibilities;
16. Mentally exaggerate your spending and understate income. Deceiving yourself is very easy. We often look at the world through pink glasses, overestimate ourselves, and underestimate the problems. Imagine that you are poorer than you are and cut costs. This will help to spend less and gradually accumulate funds;
17. Do not buy the most expensive things. A $500 thing will not make you ten times happier than a $50 thing. It seems that expensive goods bring more happiness, but it does not depend on the amount of money spent. There is a certain amount, after which the pleasure of shopping no longer grows. Find this middle ground and do not spend anymore. Do not forget that pleasures are boring too, especially the joys associated with food, sex, travel and shopping. Over time, they cease to cause strong feelings, no matter how much you pay for them. Therefore, spending on things more and more money simply does not make sense;
18. “Think like a rich, dress like a poor.” This is was Andy Warhol said. Wear basic clothes, drive a regular car, and choose practical things. Those who wear expensive brands usually do not have money and live in debt. They are simply not confident in themselves and want to attract attention due to expensive things;
19. Be rich internally. Remember that you have everything you need. Think less about shopping. Spend more time and effort creating something important.
    Live more modestly than income allows. We get used to new things in two weeks. No matter how expensive they are, they no longer make us happy, because they become ordinary. Try to get used to a more modest lifestyle. Buy a cheaper item, even if you have enough for the expensive one. Buy generics – inexpensive equivalent to original drugs. In the cafe, choose the cheapest coffee or the simplest dish. Over time, this will become a habit;
20. Do not waste money on brands. When you look at a thing, think not about the brand or price but about what it essentially is. Lexus is just an expensive Toyota Camry. Filet mignon is just a part of cow carcasses, and expensive wine is fermented grape juice. The new smartphone is just a piece of metal with a touchscreen. The brand suit is pieces of fabric sewn by some kind of worker with a minimum wage. Constantly reduce the value of such things in your eyes. Then they will become less attractive to you;
21. Do not invest all the money. If 99% of your funds are invested in real estate, you are deprived of financial freedom. In an unforeseen situation, you will not be able to pay off and you will have to borrow. Try to always have free funds that can be quickly withdrawn from your account. This is also useful when you get a favorable opportunity to invest them;
22. Do not buy anything that you cannot pay without loans. We are too optimistic about our capabilities. It seems to us that we can quickly repay the loan. But debts accumulate like a snowball. The more debts you have, the faster you become a slave of the banking system. If you still want to use a credit card to receive bonuses, buy only what you could pay without loans;
23. Do not go cheap when charging fees for their services. You need to value yourself. If you are an entrepreneur or freelancer, take a little more for your services than you think you deserve. You may lose a few customers, but you will get more profit in the long run. Of course, you cannot ask too much when you are just starting. To gain experience, work for free for a while. But then take a fee for services above the average. If you agree to an average payment, you always have to somehow make ends meet;
24. Work on what you love in your free time. Many people want to quit work in the office and do what they love to do: become a photographer, traveler or writer. Do not do this until you have financial stability. Live on income from your main job and do your dream business in your free time. Get up an hour earlier, use the lunch break, do something useful in the evening instead of watching TV shows. When the money from extra work is enough to pay bills, you can leave the boring company. But always have funds ready for unforeseen situations and a backup plan. You may have to live with your parents again or return to your old job;
25. Think about what else you can buy with the money you are about to spend. Usually, we compare only things of the same category. For example, smartphones from different manufacturers. But maybe it’s better to go on an interesting trip instead of a new cool phone? Or invest in your education? Or pay part of the debt?
26. Imagine how you feel about buying this thing after 5-10 years. Be realistic. Any purchase will lose its presentable appearance in 5-10 years. This is especially true for cars. You’d better not chase fashion but look forward to the long term;
27. Do not forget that money has no value on its own. In fact, money is just paper. Even precious metals have nothing special – they are just brilliant stones. Think about why they are important to you. Perhaps they give you a sense of stability or symbolize success. Determine what money means to you. For example, freedom, strength, lack of pain, the ability to do what one wants. Do not take money too seriously. And do not forget about really valuable things: relationships with loved ones, important work, and gratitude;
28. Do not become a slave to money. Money is neither good nor bad – it’s just a tool. We decide what to use them for. Think about how they affect your life. Why do you need money? What joys and anxieties can they bring? How can money help you and others? And can they ruin your life? Provide yourself with everything you need for life. Once you have enough money to do this, spend time and energy on your development. And then do something useful and help others.