Becoming rich is one of those things many of us dream about; waking up with no financial worries, no mortgage, the money to send our kids to college, and so on. Unfortunately, few of us will ever become millionaires.
However, there are some ways you can start saving today so you can afford an early retirement or live comfortably working part time.
Here are 15 ways to save now so you’re rich later.
1Negotiate your bills
Just because a company quotes you a price doesn’t mean it’s the best one they can offer you. Start by contacting the companies with which you have a regular bill, for example:
- Credit card
If you contact them and explain that you have been offered a better deal elsewhere, they may be able to negotiate a better price for you, especially if you are a long-term, loyal customer. If they can’t offer you a better deal, it may be worth switching providers.
2Cancel unnecessary subscriptions
We often get lured into paying monthly subscriptions because we feel it would encourage us to use them. Unfortunately, most of the time that’s not true and it’s just another way to eat away at our bank balance. Think about whether or not you really need the subscriptions mentioned below:
- Gym membership
- Magazine subscriptions
- Amazon Prime.
3Shop retailers who offer rewards
Because retailers want you coming back for more they often offer a variety of rewards such as coupons, discounted offers, and even freebies. Create an email address specifically for these programs and shop according to the deals each retailer offers every week. You can also shop secondhand or with online retailers who offer better prices, like Ebay, Amazon and Craigslist.
4Ignore links that promise fast money
There is little more embarrassing than falling for the online scams that claim you can earn thousands of dollars a month by clicking a link and investing a couple of hundred dollars. Similar to fad diet pills and online gambling, very few ever make a cent, let alone a living.
Becoming rich takes time, patience, and discipline, so instead of investing your hard-earned cash into what adverts call “online deals”, put it in a savings account. You could also learn how to invest in stocks and shares. If you learn the basics, you could slowly generate a moderately good income on the side.
5Stop buying branded products
Fancy marketing is something we all fall for. The beautiful packaging and catchy tagline are probably what lure you in, but here is a secret: The product is no different to your supermarket’s own brand version. Aside from the product not being different, the own brand version will cost a fraction of the price.
6Don’t spend just to keep up with others
Your personal goals are what should matter to you the most, not what other people are achieving. It can be disheartening to see your neighbor roll in driving a new car every year but remember that as nice as it would be to have one yourself, you don’t need it. Work towards something bigger and better than material possessions and you’ll reap the rewards in the future.
7Cook at home
Eating out is extremely expensive, not to mention the drinks you probably order with your meal. Some ways to cut out expensive restaurants could be to:
- Invite friends over for dinner parties
- Celebrate birthdays, anniversaries, and other important landmarks with a big barbecue gathering
- Take your lunch to work with you
- Plan ahead so that you don’t pick up food when stressed
You may also find that hosting events in your home with family and friends lowers the amount you spend on drinks, as all good guests bring a bottle or two with them to an event.
8Make your own coffee
If you spend $3 to $5 a day on coffee, it’s time to stop. Aside from the mound of sugar you’re probably consuming, you could save up to $35 a week; that’s more than $1,800 a year. Instead, invest in a nice thermos, coffee machine or just higher quality coffee from the supermarket, and make your own at home.
9Automate your finances
Automate your finances so that all your bills are deducted from your bank account directly after every paycheck comes in. For example, if you get paid on the last day of every month, schedule your bill payments for the first. Organizing will help you have a much more realistic view of your monthly budget and how much you can set aside for savings.
10Think of the environment
Here is some happy news: Taking strides towards being more eco-friendly will actually benefit you financially as well. You could have a positive impact on the environment and cut your bills significantly by:
- Spending less time in the shower
- Turning off the lights and all electrical devices
- Changing to energy-efficient light bulbs
- Getting a programmable thermostat
- Connecting to a smart powerstrip
- Insulating your water heater
- Air sealing your home
- Dry lining your clothes.
11Rent or sell your belongings
Whether it be clothes, electronic devices or even cosmetics, we all spend money on things we often do not need. Decluttering your home is a great way to start afresh and earn a bit of spare cash.
Consider listing items on Ebay, having a garage sale, and even listing your spare room on Airbnb. In some parts of California, a spare room on Airbnb goes for up to $4,000 a month, something to seriously take into consideration if your bills are high and you have a mortgage to pay.
12Stop using your credit card
Although not all bad, credit cards should be used sparingly. They are great for:
- Building a credit rating
- Cashback rewards
That said, if you don’t have the funds to pay it off, you could end up in serious debt. Make your credit card an emergency card. Do not keep it in your wallet when you go grocery shopping or to the mall.
13Get involved with free activities
You may feel that participating in family and friendly activities are always expensive, but they don’t have to be. You could simply swap an afternoon at the movies for a day at the park with a picnic and a Frisbee. You could also look up community activities in which you are interested.
If you get your hair, nails, or teeth done regularly, you should consider visiting vocational schools in your area, as they often host free events so that students can practice. Don’t be scared, they are supervised by professionals and although it may not be worth the $100 you spend on your hair every month, you’ll still receive amazing service!
14Maintain your car
Better yet, walk, rideshare, or table public transport wherever you can. That said, I do know that these options aren’t available to everyone, so if you have to drive to and from work or college every day, make sure that your car is fuel efficient and that you look after it by:
- Regularly cleaning the air filter
- Making sure your tires are inflated and rotated
- Checking the oil and water levels
Lastly, avoid parking and speeding tickets at all costs!
15Put in the Hours and save what you earn
Of course, if you have a full-time job, it can be difficult to find the time to earn spare cash on the side, especially if you have a busy social life or a family. If you can, putting in additional hours alongside your job is a great way to save money. For example, you could:
- Do some freelance consulting
- Find a weekend job
- Teach or mentor
- Sell products online
Saving money is a very difficult task for most, but by following some or all of the suggestions outlined above, you’ll find yourself closer to your financial goals in no time! Start by making the small changes that will make no difference to your current lifestyle and then push yourself that step further to become more frugal with your earnings.
This article was originally posted here on Entrepreneur.com.
(Infographic) The Financial Advice Millennials And Gen Zers Want To Know
Having a grasp on your financials is tricky, but it’s crucial if you want to be successful. And that starts with getting the right advice.
Whether it’s saving for retirement or paying off credit card debt, money management can be a challenge. Of course, different people have different concerns – and that often comes with age. While a 60-something baby boomer might be organising their savings for retirement, your 20-something millennial might be focused on paying off student loans.
In a recent study, financial intelligence company Comet surveyed more than 1 000 people to uncover the top financial concerns of various age groups, as well as the financial advice millennials and Gen Zers want to know and what they hear instead.
Overall, saving for retirement was the top concern across all age groups, with saving for an emergency and affording monthly bills following in second and third. However, it’s no wonder these are some of the most pressing worries – according to the research, 23 percent of people admit they don’t have a savings account, and 43 percent reported not being on track towards their retirement goals. Perhaps that’s because they didn’t hear the right advice growing up. At least that might be the case for Gen Zers and millennials.
According to the research, these young people want to learn things such as how the stock market works, how to manage an investment portfolio, how to invest in real estate and how to build credit. Instead, they’re simply told how to create a budget, save for retirement and pay credit card bills in full every month.
Having a grasp on your financials is tricky, but it’s crucial if you want to be successful and comfortable. To learn more, check out Comet’s infographic below.
This article was originally posted here on Entrepreneur.com.
14 Ways To Make Quick Cash On The Side
If you need money quickly, here are some solid ideas.
Need to make some fast money on the side, whether it’s to pay off a credit card or to make your rent?
Keep in mind, making quick side cash isn’t about making a lot of money or getting rich. It’s about getting a shot of capital to help tide you over and put something extra in your pocket. However, some of these side-income ideas can build up your wealth over time. There’s many ways to accomplish this: By participating in the gig economy, the sharing economy, online sales networks, passive income techniques and more.
If you’re looking to make extra money in a relatively short period of time, check out these 14 slides.
Take Advantage Of Financial Democracy Made Possible By The New Stock Exchanges
Why should financial democracy matter to entrepreneurs?
Because it creates a society able to afford products and services. Without it, even the innovative products and services that are entrepreneurs’ bread and butter will fail.
What is financial democracy, exactly?
It’s both the right and the ability of the (wo)man in the street and business people to make the decisions that affect their financial circumstances.
Financial democracy does not automatically follow political democracy. For almost 25 years after South Africa’s political transformation, the exclusiveness of our financial markets continued to deprive the vast majority of South Africans of the means to invest, save, and build wealth. South Africa has, therefore, never developed a retail stock exchange environment. So, it has deprived the majority of small and medium sized business of access to capital.
For entrepreneurs to truly flourish, they need a mechanism that easily and seamlessly connects the investor pool with every size of business. And, they need affordable ways to enter both the retail and institutional market.
In short, they need stock exchanges. Ones on which listing takes weeks rather than years, doesn’t break the bank for listing fees, and provides the shortest route to the largest possible potential investor base.
That’s not been possible in the stock exchange monopoly that existed for six decades. Now, it is.
We now have four new stock exchanges. The resulting competitive environment will significantly reduce the cost of listing – and the cost for investors of buying and selling shares.
Instead of restricting share trading to people or organisations who already have tens of thousands of rands to invest or millions to spend on listing, by licensing four new stock exchanges, the Financial Services Conduct Authority (FSCA, formerly the FSB) has recognised that most financial decisions do not call for high levels of education.
Most people know how to spend their own grocery money. Most know that it’s better to keep their R1 000 monthly income in a coffee jar than spend R50 of it on bank account fees. People who can barely read and write are immensely skillful at manipulating air time deals to their advantage.
There is significant financial savvy in all social strata.
In the same way, although the mechanics of bookkeeping and accounting may be unfamiliar territory to many entrepreneurs, most have a clear understanding of the difference between profit and loss.
The FSCA has therefore enabled democratisation of the financial markets by enabling the broadest possible spectrum of entrepreneurs and investors to use stock exchanges to participate in and contribute to the economy – on their own rather than prescriptive terms.
How do you take strategic advantage of this democratisation?
- Base your business strategy on people’s instinct for making decisions in their own best interests. Trust financial decentralisation, such as one sees in crowd funding and in digital environments such as block chain, where people would far rather trust one another than institutions and governments. This is democracy innately at work in the financial environment and it’s accelerating organically as digital technologies give people more means and the confidence to help themselves – to information and opportunities. Ride the wave.
- Tap into people’s desire to innovate. Consumer organisations have proved that letting people interactively help them develop products is a powerful growth engine. Apply the principle by letting people grow your business by buying shares in it, giving you capital and themselves a platform on which to build wealth.
- Remember, the ultimate loyalty reward is equity.
Your financial democracy business plan
Look to list on an entrepreneurial stock exchange; one that was founded by entrepreneurs on entrepreneurial principles.
That means: A stock exchange that is already built on financial democracy and decentralisation. One that has, at its core, a single operational concept that keeps things simple for you, automatically gives you an immediate competitive advantage, and, ensures that no matter what your business needs in terms of attracting capital, the exchange can provide all the options in the same, consistent way.
What does such an exchange look like?
It has fintech capabilities. So:
It slashes your listing costs. It achieves this, among other things, by enabling you to populate an electronic prospectus, demonstrating your financial viability, and self publish.
It gives you control by having the granularity and agility to impose relevant governance right down to the individual investor. You get to decide the types and quantities of investors you want to attract. This also enables you to achieve black economic empowerment in perpetuity.
It leads the world by clearing and settling trades in T+0. No-one in the value chain has to hold large sums of money for days following a transaction. Small transactions become profitable. Investors don’t have to risk their life savings on a single large trade. A retail market is opened. An investment and savings culture is entrenched. The economy expands. Your business grows steadily.
It enables anywhere, any time trading via a mobile app that allows investors to see share value in real time. See economy expansion point above.
It integrates processes and procedures, simplifying them and ensuring rapid onboarding of issuers and, therefore, speed to market with new concepts and alignment with the digital economy.
It operates a principles-based regime. So:
It treats you, as an executive, with respect. It’s not prescriptive. It does not insist on excessive oversight, allowing the Companies Act to guide you to sustainability.
It does not attempt to squeeze your company into a pre-defined business or listings format. It recognises and works with your uniqueness.
It obviates the need for expensive specialist listings advisors.
It focuses on financial inclusion and access. So:
Shares can be bought and sold for no more than R1 000. See economy building point above.
The new world of stock exchanges is integrated, synergistic, holistic, organic, self-fulfilling
Decentralisation of financial control, democratisation of opportunity leads to a whole new economy. One in which, for instance, a taxi operator can finance a minibus through a company in which his purchase gives him shares. A single purchase gives him two benefits: a vehicle on which to found his business and a longer-term investment in shares that he can trade. The funding company gains liquidity through access to a wider base of investors while being able to control who buys and sells and the conditions on which trading takes place. Increasing black equity in business becomes an organic, natural, self-perpetuating process.
Everyone wins in a decentralised, democratised financial market. And it’s the stock exchanges that drive the process.
As an entrepreneur, can you afford to ignore the acceleration that listing could give your business growth?