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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