It is very common to think about earning more money to accumulate more wealth and buy more. This is a mistake that we must correct in order to achieve the financial stability that we long for.
To achieve this goal, let's start by clarifying something important: increasing profits is not generating wealth. They are similar concepts but generating wealth includes being able to save and invest .
For example, if you earn € / $ 1000 or more per month because you have an extra for commissions or you simply work more hours, this amount is to increase your earnings. But, despite this, you cannot make ends meet because the money is not enough, so you are not richer because you are not generating wealth.
We have this problem only because we are not financially educated to eliminate the habits of poverty that affect regardless of the profits obtained.
Financial education refers to the proper management of your money. Something as simple as: generate different sources of income , divide your bank accounts and invest in your mind.
Generating different sources of income is the extra or variable that we earn more in those hours worked in the same company or double salary for working in a different one. This monthly bonus should be transferred or deposited in a bank account other than the usual one, in order to convert it into wealth through savings or investment plans.
Investing in yourself is the best way to line your pockets and achieve financial stability. Changing your mind and habits of poverty allows you to improve the focus and perspectives in your life projects because earning more money is not being richer.
In the days that we live, finding a way to save or switch to a stable, well-paying job is like thinking about winning the lottery without even buying a tenth.
But I can tell you that this, like everything in life, is about knowing how to manage finances while maintaining absolute control of every penny you spend or invest in your personal economy.
The first strategy is to make all purchases with the credit card and establish a comfortable fixed payment fee, according to the expected income to be received and the limit granted on your card.
Second, do not plan all purchases for a specific date such as Christmas or the Three Wise Men. Ideally, take advantage of discounts and promotions throughout the year that allow you to pay for the same product at the lowest possible price, so practice financial patience .
Following this line, the third strategy is to control impulses and consumption. Advertising is synonymous with consumption that causes you to spend more money. Therefore, evaluate the quality-price and above all your true shopping tastes, prioritizing what you really need. Making a list always helps you focus on this strategy.
Fourth, do not buy when you feel sad or negative because you are going to spend more to feel abundant in those moments. Use those emotions to your advantage selling what you no longer like or don't fit. This will help you recover part of the invested cost and clear your ideas positively.
Last but not least, strategy five is to maintain a low level of debt and with the best interest rate. Using your income to pay borrowed money is more expensive than spending your entire salary on purchases the same day you receive it. If you learn to control your finances in the face of the crisis you will not have to borrow and pay extra in interest.