💼 How to Get Rich From Scratch: Simple Tips for Success

Material wealth is one of the most important and burning topics. Almost every second person thinks about how to get rich from scratch. It is safe to say that material well- being is achieved in two ways – saving the money received and increasing savings. Each point deserves a separate analysis.

How to reduce expenses

4 rules that indicate how to increase savings without additional sources of income:

Cost control

It's a platitude, but few people in our country keep track of their personal expenses. By recording your expenses, you can eventually discover the hole into which your hard-earned money goes. And it won't necessarily be expenses on food or a child. Over the course of a year, considerable amounts of money are eaten up by, for example, smoking, which, in addition to expenses, is harmful to health.

• Lunches at a cafe with colleagues.
• Coffee bought on the way to work.

Without buying coffee every day for $130, you will end up with ~34,000 rubles per year. Investing this money in stocks or bonds ~10-20% per annum or by investing in a bank at ~6-9% per annum, you can easily calculate how much you will earn in 10 years.

Avoid overpayments for an apartment and a car

Of course, everyone wants to live in a spacious house and drive an expensive car, but the costs of such benefits will increase significantly. For a larger number of square meters and rent you will have to pay more, and the maintenance and service of an expensive foreign car eats up almost half of the family budget, since in addition to spare parts, tires and maintenance at an official dealer, you will have to pay for expensive insurance, and gasoline for such a car is not a cheap pleasure.

Wealth does not come from great wealth, but from modest needs.

Savings account

It is better to keep savings not at home, but in a reliable bank account – this will allow you to save money from inflation and ensure that you receive additional interest on your existing savings. It is worth monitoring the amount of interest, banks have promotions when the interest on a deposit is higher than the standard – it would be a shame to miss such an opportunity.

Simple joys

Contrary to popular belief, not everything valuable and interesting in life costs a lot of money. Before going to the cinema to see a new action movie, it is worth evaluating how much better it is than watching another movie at home or going for a walk in the park. Instead of going to a theater premiere, you can go to the same production, but in a couple of months – will it be any worse?

This does not mean that you should deny yourself the joys of life, but dosed expensive purchases and entertainment will bring much more joy than weekly spending on them. In addition, there are entertainments that are not very expensive – small theaters, not pretentious restaurants. The quality in them, as a rule, is not much different from the usual, and it costs several times less.

Since it is difficult to get rich from scratch by simply saving, below are ways to multiply your savings.

Ways to increase income

Increasing income is sometimes a risky undertaking, the main thing is to remember the measure and not be afraid of losing money. In order to increase capital and not get into trouble, there are a number of tips from people who have achieved success:

Define the goal

To increase savings, it is important to determine in advance what amount will be sufficient and in what time frame it is necessary to achieve this amount. A clear goal concretizes the desire and sets a business mood more than a simple “I want to be rich.”

There are no unattainable goals, there is a high laziness coefficient, a lack of ingenuity and a stock of excuses.

Distribute funds to different projects

There is a famous saying: “Don't keep all your eggs in one basket”

. The more sources of income, the faster the growth of savings, according to financial experts. In addition, diversification of the investment portfolio reduces the risk of losing capital.

“Airbag ”

Financial transactions are risky to one degree or another, so it is important to have a kind of “safety cushion” that will ensure a decent standard of living, even if savings are lost.

Investments

There are various ways to increase your income, but the simplest and most profitable is investing. Where to invest money is up to you, for example, investing in securities can bring in 15-20% per annum, but you should check the reputation of the broker providing such services in advance.

You should not enter the stock market until you can watch your stocks fall by 50% without panicking. To increase your capital, it is advisable to look at both accumulation points and income growth, since getting rich from scratch is only possible by increasing your income while keeping your expenses low. Although this may not look like the luxurious life of millionaires from magazine pictures, this way you can become a wealthy person much easier and with a higher probability.