1 Pay yourself first. This means before you go and blow your paycheck on a new pair of shoes or a golf club you don't need, put money aside in an account that you don't touch. Do this every time you get paid and watch your account grow.2 Make a budget. Create a monthly budget that covers all of your basic expenses and leaves a little bit of "fun" money aside. Sticking by your budget and saving at least some money each month is a good way to lay the groundwork for your efforts to get rich.
2007, the average American tax refund was $2,733.[1] That's a lot of money! Can you use that money to pay off debts or create an emergency fund instead of blowing it on something that will lose half its value the second you buy it? If you invest nearly $3,000 wisely, it could be worth ten times that much in as many years.
6
Break up with your credit card. Did you know that people who use credit cards for purchases end up spending more money than people who use cash?[2] That's because parting with cash is painful. Using a credit card doesn't carry that much of a sting. If you can, divorce your credit card and see how it feels to pay with cash. You'll probably end up saving a boatload of money.
- If you do maintain a credit card, do things to reduce expenses. Try to pay off the full balance each month and on time. That results in interest-free credit. At the very least, make the monthly minimum payment before the due date to avoid a late fee.
