One
of the biggest differences between the wealthy and the not-as-wealthy
is that the wealthy people earn interests and everyone else pays
interests. It is important to realise that money is a tool that can help
you to achieve your goals. In order for you to reach true financial
independence you need to have your money begin to work for you--not you
for it. Here are three things you can do to start making your money work
for you.
• Budget
The most important way to
change the way you handle your money is to budget. When you are
budgeting you are making your money do what you want it to. By assigning
each dollar to a category you are controlling where your money goes and
what it does. This will help you to begin to reach your financial
goals.
• Get Out of Debt
Do you know how much money you
are paying in interest each month? How much of your monthly budget is
being eaten up by student loans, car payments and credit card bills? If
you could take all of that money and put it into retirement, it is
amazing at how quickly you could save for your retirement and other
things that you want. Debt often becomes a burden and limits the choices
that you can make. One of the best things you can do with your money is
to get out of debt and stay out of debt!
•Save Your Money
Once you have freed up all
that extra money from paying off your debt you need to begin saving
aggressively. There will be a point when the money you have will earn
more than you do in a month. This takes quite a bit of money, and in
order for this to happen you need put a large amount away each month.
Once you have a six month emergency fund saved, you will need to begin
investing your money. This is how you can grow your wealth most
effectively. Additionally, saving money can help you be prepared to
handle the ups and downs that will happen throughout your life.
Culled from About.com
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