You can be Rich.
I have read some books about getting rich and most of them say the same thing just in different style. So, I would like to summarize them here.
First, It is not how much you earn that counts but it is how much you save. Let’s say you earn 12, 000 pesos per month net, the question is how much do you allot for savings, emergency fund, funds for everyday needs and funds for things you want/leisure fund.
Savings, should be the first priority. Usually, what we do is that savings is the least priority. Earnings minus everyday fund = savings, this is the usual set up. But the ideal set up is Earnings – savings= everyday fund. How much savings do we need to save? Atleast 20% of our earnings.
Buy cash, yes it is sosyal to see your credit card waving on the counter but think of the interest. Or if you want to use your credit card be sure that you have the money on hand already and not to be deducted on the next salary. By doing this you could monitor your expenses.
You need an emergency fund. Emergency fund is equivalent to 6 months worth of your salary. Why do you need emergency fund? This is the money you will use in case that your company close and you need to find another job.
Passive income, money that will earn on itself even if you are not working. This is a like putting your money in the bank but even better. This could be investment like mutual fund, treasury bills, business partnership etc.
I just want to add you don’t always need big money to earn big money. Sometimes you only need good idea to earn big.
Don’t be contented to be an employee. Be the boss, be an Entrepreneur in your own little ways. Start small! Think Big!
picture from: library.drexel.edu