30 Financial Tips To Help You Become Richer 2020

Lack of money leads to suffering, but money does not guarantee happiness. Strive for the golden mean.

Photographer and blogger Eric Kim described how changing attitudes toward money helped him achieve Financial Stability. He grew up in a poor family, often did not know whether they will be able to pay for the apartment or at the end of the month they will remain on the street. He had to observe how relatives and friends quarrel over money.

Now he owns his own business and no longer lives from paycheck to paycheck. He did not become a millionaire, but he reached a level where you do not need to constantly think about finances. Kim shared tips that he would give to himself at 18. Perhaps they will come in handy for you.

Money is a tool that allows me to do what I love. I do not consider them an end in themselves. Now I don’t need more money. But I continue to work and earn money to help my family and loved ones.

1. If you convince yourself that you need a thing, do not buy it

One of the main financial mistakes is to buy things unnecessarily. We often do this: we buy new clothes, a phone or a computer, just to keep up with others and feel fashionable. But most of these things we do not need .

When something is really necessary, you understand it right away. If you have to convince yourself before buying, do not take this thing.

2. Do not buy the first models

When you see a new model of a car, camera or smartphone, do not rush to buy them. Wait for the next version: there will be no problems or shortcomings with which the first versions sin. You will protect yourself from excess headache.

3. Do not skimp on what makes you happy

Money can buy happiness if you spend it on impressions and things that matter to you. If they delight, inspire and motivate - these are necessary investments in your well-being.

Just remember that the pleasure of things goes faster than the impressions.

In just two weeks, we get used to new things and stop noticing them. Impressions please much longer. You can mentally relive them again. In addition, they help us grow and develop new skills.

4. Earn more and spend less

Many, after raising salaries, start spending more. They buy an expensive car, travel more often and eat in a cafe. As a result, they do not become richer, but remain at about the same level of affluence. But if you earn more and spend less, free money will remain. They can be put on the account or invested.

Think about how you could earn more: take additional responsibilities at your current job, find a part-time job, engage in freelance work . Then think about how to spend less. For example, cook at home and go to cafes less often. Spend less on clothes. Sell ​​your car and use public transport. Do not chase the latest trends. Use the remaining funds to pay debts or save up for something.

5. Never get into debt

No matter how rich you are, if you have debts, you are a slave to the banking system. To pay them and maintain the necessary standard of living, you have to work. Perhaps at work that you don't like.

Therefore, never borrow. If you are considering opening your own business or creating some kind of project, but for this you need to get into debt - postpone this venture. Start only when you can pay all the expenses yourself. So you risk less. And yet the lack of funds forces us to seek a creative approach to problems.

6. Learn not to want more than what you already have

Being rich does not mean having everything you can. True wealth is when you do not need anything other than what you already have.

And a billionaire can be poor if he constantly needs more and more. He can own real estate all over the world, but if his friend has a private spaceship, he will still be jealous.

We feel that something is missing when we compare ourselves with people richer than us. Instead, compare yourself to those who are poorer. Then your current lifestyle will seem sufficient to you.

7. Look for not perfect, but good enough

We always strive for the ideal, we want to have all the best. But think, do you really need the best car, the most powerful smartphone or apartment in the most respectable area? Maybe what you have now is enough?

Try not to use the phrase "best" for a month. Observe how your attitude to shopping will change and how much money you save.

8. Do not buy many things from one category

Living is much easier if you have one phone, one computer, one pair of casual shoes. In clothes, you can limit yourself to one type of trousers, shirts, socks. You will make fewer decisions, be less nervous, and spend less money.

Look at your stuff and think which 10% of them you use 90% of the time? Try to get rid of all unnecessary . Sell, donate or throw away extra items. You will feel relieved, you will be able to devote more attention and energy to important matters.

9. When choosing a product, focus on a lower price

The brain clings to the first price you saw. Then you choose a product in comparison with this price. If at first you were offered a camera for 50 thousand, and then for 30, the second will seem to you a bargain. Although, perhaps, a camera for 15 thousand would suit you.

To spend less, first look at lower value products. Compared to them, the rest will seem more expensive. As a result, you will stop at an acceptable option and do not spend too much.

10. Change your environment to consume less

The environment affects how much we consume. When all around often change gadgets and cars, buy new clothes and have dinner at a restaurant, it will be difficult for you to resist. If you want to spend less and live more modestly, try to change your environment. Naturally, it is not always possible to move to another district or city. But you can change the way of life. Less often go to shopping centers and avoid everything that makes you want to buy something.

11. Fence off advertising

We don’t even notice how advertising changes our idea of ​​a product, making us want it. Avoid her in every way. Do not watch TV, do not read magazines, turn on ad blocker in the browser. Unsubscribe from newsletters. Buy paid versions of apps to turn off ads.

Try to isolate yourself from advertising for a month. Then evaluate whether you began to think less about purchases. And check how much you saved during this time.

12. Remember: the more money, the more problems.

Money is welcome up to a point. When there are enough of them to pay for housing, to postpone for some time and not to worry, a larger income will no longer make you happier. As income rises, so does stress. You need to worry about tax, about bad investments, about greedy relatives who ask for money and secretly await your death.

The same thing applies to things. For example, the larger your house, the more worries: you need to clean a large area, buy more furniture, repair and change most. Therefore, when considering a purchase, consider such hidden disadvantages of owning a new thing.

13. Invest in your development

The most important thing is not to invest in the stock market, but in yourself. Books will help . Most often, a book is a squeeze of the author’s ideas in a few years or even in a lifetime. This is an opportunity to learn about the lessons that the other person has learned and apply them to your advantage.

The more you invest in expanding knowledge, searching for new ideas and developing a creative approach, the more you will benefit.

If you draw at least one new idea from the book that will inspire you, it means that you have not spent your money in vain.

14. Before helping others, ensure your own financial stability.

If you have difficulties with money, do not lend it to someone - even a family member. You worsen your situation and in addition spoil the relationship.

It’s better not to lend money to friends and family at all. If you want to help, give them for free. Only in this way will you maintain a good relationship. But help when your own financial situation is stable.

15. Do not invest in stocks.

You will not get rich on them. Professional traders often act at random. But it's not only that. Even if the value of your shares grows by 30%, the profit from this does not compare with the profit from investing in yourself . Having gained new skills, after a while you will earn more.

Think about how such an investment can help you get rich. Maybe you should take some courses, sign up for a seminar, or start your own business.

16. Do not risk in vain

It is believed that entrepreneurs like to take risks just for the sake of risk, but this is not so. Good businessmen carefully consider their actions and do not allow situations in which you can lose all the capital.

If you are planning to start your own business or invest in something, do not forget that you can always fail. Get ready for this and make sure that you don’t lose all your money.

17. Strive not for wealth, but to not go broke

If you are a business owner, focus not on how to increase profits, but on how not to go bankrupt. If you are an employee of a company, consider how to stay fit. For example, you can acquire new skills or expand your responsibilities.

18. Mentally exaggerate your spending and understate income

Deceiving yourself is very easy. We often look at the world through pink glasses, overestimate ourselves, and underestimate the problems. Imagine that you are poorer than you are and cut costs. This will help to spend less and gradually accumulate funds.

19. Do not buy the most expensive things

A thing for 1,000 rubles will not make you ten times happier than a thing for 100. It seems that expensive goods bring more happiness, but it does not depend on the amount of money spent. There is a certain amount, after which the pleasure of shopping no longer grows. For everyone, it is different. Find for yourself this middle ground and do not spend anymore.

Do not forget that pleasures are boring too. Especially the joys associated with food, sex, travel and shopping. Over time, they cease to cause strong feelings, no matter how much you pay for them. Therefore, spending on things more and more money simply does not make sense.

20. “Think like a rich man, dress like a poor man”

So said Andy Warhol. Wear basic clothes, drive a regular car, and choose practical things. Those who flaunt products of expensive brands often, on the contrary, do not have money and live in debt. They are simply not confident in themselves and want to attract attention due to expensive things.

Be rich internally. Remember that you have everything you need. Think less about shopping. Spend more time and effort creating something important.

21. Live more modestly than income allows

We get used to new things in two weeks. No matter how expensive they are, they no longer make us happy, because they become ordinary. Try to get used to a more modest lifestyle.

Buy a cheaper item, even if you have enough for the expensive one. Buy generics - inexpensive equivalent to original drugs. In the cafe, choose the cheapest coffee or the simplest dish. Over time, this will become a habit.

22. Do not get hung up on brands

When you look at a thing, think not about the brand or price, but about what it essentially is. Lexus is just an expensive Toyota Camry. Filet mignon is just a part of cow carcasses, and expensive wine is fermented grape juice. The new smartphone is just a piece of metal with a touchscreen. Brand suit - pieces of fabric sewn by some kind of worker with a minimum wage.

Constantly reduce the value of such things in your eyes. Then they will become less attractive to you.

23. Do not give all the money back on investment

If 99% of your funds are invested in real estate, you are deprived of financial freedom. In an unforeseen situation, you will not be able to pay off and you will have to borrow. Try to always have free funds that can be quickly withdrawn from your account. This is also useful in the event that a favorable opportunity appears to invest them.

24. Do not buy anything that you can not pay without loans

We are too optimistic about our capabilities. It seems to us that we can quickly repay the loan . But debts accumulate like a snowball. The more of them, the more firmly you fall into slavery to the banking system. If you still want to use a credit card to receive bonuses, buy only what you could pay without loans.

25. Do not be cheap when you pay for your services

Appreciate yourself. If you are an entrepreneur or freelancer, take a little more for your services than you think you deserve. You may lose a few customers, but in the long run you will get more profit.

Of course, when you are just starting, you cannot ask too much. To gain experience, work for a while for free. But then take a fee for services above the average. If you agree to an average payment, you always have to somehow make ends meet.

26. In your free time, work on what you love.

Many people want to quit work in the office and do what the soul is up to: become a photographer, traveler or writer. Do not do this until you have financial stability. Live on income from your main job and do your dream business in your free time.

Get up an hour earlier, use the lunch break, do something useful in the evening instead of watching TV shows. When the money from extra work is enough to pay bills, you can leave the boring company. But always have funds ready for unforeseen situations and a backup plan. You may have to live with your parents again or return to your old job.

27. Think about what else you can buy with the money you intend to spend.

Usually, when comparing, we compare only things of the same category. For example, smartphones from different manufacturers. But maybe instead of a new cool phone it’s better to go on an interesting trip? Or invest in your education? Or pay part of the debt?

28. Imagine how you feel about buying in 5-10 years

Look at things realistically. Any purchase in 5-10 years will lose its presentable appearance. This is especially true for cars. Better not chase fashion, but look forward to the long term.

29. Do not forget that money alone has no value.

In fact, money is just paper. Even precious metals have nothing special - they are just brilliant stones. Think about why they are important to you. Perhaps they give you a sense of stability or symbolize success. Determine what money means to you. For example, freedom , strength, lack of pain, the ability to do what one wants.

Do not take money too seriously. And do not forget about really valuable things: relationships with loved ones, important work, and gratitude.

30. Do not become a slave to money

Money is neither good nor bad - it's just a tool. We decide what to use them for. Think about how they affect your life. Why do you need money? What joys and anxieties can they bring? How can money help you and others? And can they ruin your life?

Provide yourself with everything you need for life. Once you have enough money to do this, spend time and energy on your development. And then do something useful and help others.

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