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How To Save Money To Invest
A great guide on saving money to invest is book called The Richest Man in Babylon. This book offers invaluable advise on how to save and invest money. This isn't a get rich quick scheme, but sound principles on how to gain wealth systematically starting with a foundation of saving money.
Saving Money To Invest Rule 1: Save 10% of your income.
Spending 90% of what you earn and invest the other 10% is an incredibly powerful principle of wealth. Unfortunately, this is one of those principles that is easy to read about yet can be somewhat difficult to do. It's takes desire and diligence on your part to get to this great goal of saving 10% and making it a habit for the rest of your life. You might find it easier to not hop straight into 10%, but start small and take gradual steps to 10%.
Saving Money To Invest Rule 2: Control your expenses.
The key to saving 10% of your income is creating a budget that keeps your expenses within the 90% of your total income.
Saving Money To Invest Rule 3: Invest the money you saved.
All of the money that you saved, which hopefully is 10% of your income, should be invested.
Saving Money To Invest Rule 4: Don't invest in risky investments
Don't invest in get rich quick schemes or investments that extremely risky. It's best to stick with investments that make sense to you.
Saving Money To Invest Rule 5: Own your own home.
Owning your own home rather than renting is a good wealth building investment.
Saving Money To Invest Rule 6: Invest for your future.
Invest with your financial goals in mind such as children's college, new home, any large purchases, retirement, etc.
Saving Money To Invest Rule 7: Increase your ability to earn money.
Never stop improving yourself in areas that can benefit you financially. Taking classes or reading up on latest trends to improve your work skills is essential. Never settle for less than what you want in life and continue improving yourself in the areas that can help you increase your ability to earn money in the future.
These seven important rules are not just a plan on saving money to invest, but a systematic way to increase your wealth year after year.
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