Grow Your Wealth – Take Control Of Your Budget
When it comes to your finances if you really want to grow your wealth then you need to take a serious look at your money and decide where it is going to go.
It’s not the amount that counts it’s the plan that counts
If you want to make money you need to create or set aside some capital
Your Capital is any value you set aside to be invested in an enterprise that brings value to the marketplace hoping to make a profit.
This could be Active Capital or Passive Capital.
In my experience most people that I see suffering financially who are broke are not taking control of their income, You need to treat your money when it comes in like it is not yours, and allocate it to the things that are important for your life and finances.
- A percentage for long-term investments and passive income-generating assets
2. A percentage to pay for your education and business things
3. A percentage to treat yourself
4. A percentage for rainy days funds for broken washing machines, car repairs summer holidays.
5. A percentage to pay your bills and your basic living expenses
If you do this then it is not so easy to blow your money buying things you didn’t often want or need in the first place.
You can create bank accounts many are available but one of the ones that I use and like is Revolut you can create a vault for everything under the sun and then when your money comes you can allocate it to different vaults.
Normally if you put your money in the bank and a few unexpected Direct Debits or card payments come out your money is gone. But having a vault for your holiday savings means the only time the money will be used will be when you decide to take it out to pay for your holiday. If you actually do what we are discussing in this blog post.
Your investment vault only gets emptied when you decide to buy an investment it could be Crypto, Shares,Property,Gold or Silver or any other type of investment that you decide to invest in.
Another way you can increase your wealth is to pay down high-paying interest credit cards, which means you won’t be going to work or creating income to feed a credit card company, remember to be rich you need to have more assets and learn not to be everyone else’s asset unnecessarily.
You can start with paying down the highest interest card first and then work your way to the next highest interest loan or card.
You could take out a lower-interest loan to consolidate your credit card high-interest debts
You can also use 0% balance transfer cards to pay off other high-interest cards but if you do this you do not want to use the card to spend more money you need to take the 30% interest you are saving annually to pay off your cards faster.
Or smarter still you can use the savings to put into something which pays good interest then use the 0% borrowed funds and get paid interest on the money and only pay the minimum payment on the 0% card each month, then at the end of the interest-free period take out the money and the interest and use it to pay off the 0% credit card and have a bit of profit from it.
By budgeting your finances you can start taking control of your money instead of being a slave to money you can control where your money is going and make your money work for you.
Some more tips on creating more wealth