10
ways how a low income can create you wealth
Have
you ever asked yourself how the wealthiest people you see around you acquired
their wealth? I know you might think that they had well off backgrounds or may
be some of them had high income at the beginning. This might therefore make you
keep on condemning yourself just because you have a very low income and you
believe you can only live from hand to mouth. Here are some of the tips that
can make you build up wealth with your low income if well applied.
1.
Live within your means
Living within your
means entails understanding the life that you can afford with your low income.
It also means that you understand your income is low and therefore each and
every cent that you have counts. This means that you can only have or spend on
what you can basically afford. If you cannot afford a mortgage, you can think
on renting a less expensive house. If you cannot afford to buy a new car, do
not think of buying it just because everyone around you is having one. This
calls for understanding of self-such that you cannot be influenced to spend by
others on things you cannot really afford.
2.
Prioritize your needs
Prioritizing your needs means that you analyze how you
spend. You can even write down all your expenses that you have every month.
After you have written down all your expenses, find out those that that must be
met like food, housing, clothing and utility bills. Then you can find out where
expenses can be cut and also find out the expenses that can be foregone since
they are not that important at the time. When needs are arranged in their order
of importance, unnecessary use of money is avoided hence you become a potential
wealthy person in future.
3.
Spend less, save more
It is only a culture of saving that can make you rich one
day. Reason being, the money that you save with your little income can
accumulate and allow you invest in future and become wealthy. You can decide to
take like 20% of your earning to your savings account which means that at the
end of every pay period, your savings account is getting more money. Also, on
your spending that is noted down in your budget, you can decide to reduce
expenses like buying less expensive foods and anywhere else you realize you
have assigned much money. All these cutting down of expenses, will add more
savings to the 20% set aside before.
4.
Change your lifestyle
If you are thinking of becoming wealthy in future, think
about how you are living your life now. You can decide to live a low lifestyle
today but be assured of living a better lifestyle in future. If you were used
to having your lunch at an expensive restaurant, you can think of carrying your
own homemade food at work. If you were using a taxi to work, you can think of
cycling, public transport or even walking to work. This way, your hard earned
income can have a meaning in your life.
5.
Cut purchases on premade things
When you make things for yourself, you can be assured
that you will save a lot of money. There are a lot of things bought from shops
but they can be made at home and save a lot of money. You can therefore
consider making your own foods, detergents, cleaners and a lot more things that
can be made at home.
6.
Make snacks at home
Snacks are other
money consumers in every home. There are people who snack all day. Children
also like carrying snacks to school to have all day. Pre-packaged snacks can
really dig deep in your pocket since the sellers are selling the snack plus its
packaging. It is therefore necessary to consider making the snacks at home
since the packaging and profit cost are cut. A pizza made at home is far much
cheaper that a pizza bought at a food store.
7.
Reduce use of the utility services
Utility bills take a good amount of money from your
monthly income. Since they are necessary, the only way to go is to reduce the
use and save more. Take showers and make sure that all your taps are left
closed to ensure to ensure you cut your water bills. Make sure all the lights
of the rooms you are not using are always turned off. Think of getting rid of
the cable if you can access internet in your phone or even go to public places
like libraries for research where internet is free.
8.
Change your leisure habits
Leisure activities consume a lot of money. It does not
mean that you are having a low income you cannot have your leisure time, but
you can think of how to minimize spending in your leisure activities. If you
were used to going to places that you had to pay to have fun, you can think of
going to public parks where you do not have to pay. You can also decide to watch movies and concerts in public
places other than going to paid movie places.
9.
Keep off debts
Everybody finds themselves with debts at some point in
life. Therefore, if you have a debt that has an increasing interest, pay it off
first to make sure that it does not continue digging deeper in your pockets.
For expenses that you can pay in cash, you can avoid taking them on credit to
avoid debts. You should also have an emergency account that will cater for
emergencies hence you will not have to take debts.
10.
Consider a side hustle
One source of income can sometimes be so much pressed if
there is no other means of getting income. Diversifying your income can really
do you a great benefit. Diversifying is only possible by having a side business
that can give you more income alongside your full time job. Side hustles can be
done in the house during your free time.
Acquiring wealth is a good thing but it does not come
that easily. Therefore, your low income can lead you there if you apply the
above tips and acquire it. One day you will look back and say “it was not an
easy journey” Right?
Article by
Joyce Mwai
Nice
ReplyDeleteWell put
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