First, you have to get access to what you spend at all.So a household booklet is a good idea. You will gain insight into what you actually spend. There is a lot of hidden costs in spending.
Budget your expenses.You may best enjoy life once and reward yourself, but know what you spend.
Lubricating your own sandwich and cooking yourself is often cheaper than buying ready-to-eat meals and eating out and it’s often even healthier too.
Above all do not do impulse expenditures.These are the most expensive of them all. Let those sweets lie at the checkout and you don’t have to have the most expensive new shoes.
Think well about what you are buying and what service you are declining.What seems to be cheap in the first instance is often more expensive in the long term.
Reflection money is also a means that can be used.So do not just save, but also invest if you have enough money. Do not spread your risk and invest wisely. Invest in what is an asset for you, where you can get a return. If you earn more from your acquisitions, you can also save more.
Weigh the opportunity costs of different alternatives against each other. If you are doing a large edition, look around for alternatives and set this off against each other and Wik the pros and cons.
Don’t spend money on services and products you don’t need.This is true for every impulse purchase and practically for all products and services for which advertising is made.
The first part is just about a direct answer to your question.
The answers are written for other conversations.You have to “translate” it to your question. Not everything is meant for your question. Do yourself a favor, read to the end.
“How do I start?”
1.Take care in the first place for your physical and psychological health!! This remark has nothing to do with your question, but is inspired by the fact that health is more important than money.
2.The most important first. When your money comes to your account, you initially save (10%), in the SECOND instance you reduce your debt (10%) And in THIRD instance you give money out. Otherwise you will discover that there is almost never money to spare. “Forget” afterwards (by way of speaking) that you have spared.
3.Money is just a tool that needs to be used in the right way. A key is a tool to open the lock that keeps the door closed. Throw it through the window and you will not be able to open the right door, make sure the right way before and you will be able to open the door. Money is like the harvest of a farmer. 10% of the crop is the basis of the harvest of the following year. The rest is to live. The farmer lives for his harvest, because it finances the lifestyle of so many people. So it is also with money. A hunk lives for the money for no other reason than the money. A hard working person goes for the money because it means a way of life.
4.Another advice I always give is to buy 1 ounce of PHYSICAL silver every month and keep it until the day you retire. In the long run, the probability of profit is greater than the probability of loss. You will not sell the silver easily for other purposes (very important), so you build your own pension capital, even if it is a relatively small sum of money. If you are 20 years old, you have lived 240 months and you should have 240 ounces of PHYSICAL silver. One ounce of silver now costs about 鈧?0. You shouldn’t actually feel the purchase, even if you have to buy two ounces the next 240 month, because you started too late with this idea.
5.Also choose a note or coin that you never spend when it comes to your hands by mistake and in a fair manner. “My coins” are pieces of 鈧? and 鈧?. Keep them in a jar and “forget” them for a long period of time.
6.Guilt and alcohol work the same way. Use both in moderation and you have fun. Enjoy too much and you have it financially difficult. Become addicted and you are in trouble…
7.Destroys your credit card and use a bank card instead.
8.Avoid advertising. Whatever they have told you, the only purpose of advertising is to entice you to spend your money on their stuff, which you don’t need nine of the ten times anyway. I have a television that can interrupt and postpone the broadcast. I stop at the beginning of the advertisement and 7 minutes later I rinse fast forward. Windowshopping is also a form of exposing itself to advertising.
9.80% of all problems are caused by 20% of the causes. If you can find those 20% causes, which will make you spend 80% of all your money, it becomes easier for you to reduce your spending.
10.Avoid bars, restaurants and paid entertainment.
11.A saved Penny is a deserved penny. Many, if not most spending-versus-saving decisions take place during the small moments of life, at the level of the pennies.
12.Create a mantra in the sense of: “Financially successful people set aside 10% of their income, are debt-poor and enjoy life with the rest of their income.” Say this to yourself a thousand times a day. After many months your unconscious will believe this mantra and will help you to make that mantra true. Say “successful people do…”, not “I have to do…” Because the latter evokes too much resistance from your subconscious mind.
If you only think of saving money, the next can happen with your money.
In the years ‘ 70 there was a TV series that was called “the man of Six million dollars”.It was an astronaut who had ended up in a terrible accident, but with the help of advanced technology and a lot of money, he was rebuilt and turned into a super strong man who worked in the service of the government.
What I want to say is that six million dollars at that time was an astronomically high bedragl, a bit like six billion today.Now it is “only” a large amount.
Inflation can “eat up” your purchasing power.
My way to pay debts is the 1% method.
I advise you to use 10% of your income for debt repayment.However, one wants to feel the result almost immediately after paying a sum of money. This is the way someone can do it.
Month 1: $1000 debt.Pay 1% or $10.
Month 2: $990 debt.Pay 1% or $9.90.
Month 3: $980.10 debt.Pay 1% or 9.80
Month 4: Debt of $970.3. Pay 1% or 9.7 and your new debt amount is $960.6
Now you will “feel” your efforts to pay off debts in two ways.You pay a little less capital every month and you pay less interest every month.
You can play with that 1% routine.You can make 5% per month or 0.5% of it. I gave you an example of what is possible. But make sure that each month’s debt is less than the month before with at least the percentage you’ve chosen.
When playing the Monopoly game, there is almost always a player who chooses to stay on his money in the beginning.Initially, it seems quite a nice strategy. Every time when ‘ Start ‘ is passed, this player sees his capital grow.
This strategy goes well until others go to buy houses and hotels.Suddenly you have to pay rent everywhere. For the player who stayed on his money, the inevitable bankruptcy does not follow much later.
In real life It is not quite so that a person ultimately owns everything, and all others absolutely nothing.But also in real life it is true that those who invest their money in assets that make money themselves (shares for example) are ultimately much better off than those who stay on their money and do not invest.
How do you win?
How do you win with Monopoly?Buy as many properties as possible. And preferably the orange and red streets because they have the highest expected return. Well considered the value shares of the Monopoly game!
And nice to know: just the most expensive streets-Kalverstraat and Leidschestraat-do not turn out to be such attractive streets to buy.Compare them with the most beloved shares of the moment, whose expected return is actually not good at all.
The game Monopoly is of course not quite a one-on-one compare to real life.But also in real life there is a strategy to get rich:
1) always live under your booth so that there is money to invest;
2) Invest the saved money in assets that yield money themselves.
As with Monopoly, it is practically impossible in real life to save yourself rich.Conversely, it is virtually impossible not to get rich when held for a few decades at both points above. In fact, a significantly shorter period is often enough to become ‘ ordinary ‘ financially independent.
Read the book “Fail-Safe Investing, lifelong Financial Safety in 30 Minutes” by Harry Browne and “” The Permanent Portfolio, Harry Brown’s Long-Term Investment Strategy “.
The basic principle is to
25% of your savings in equities to invest
25% of your savings reserve for the purchase of precious metals
25% of your savings go to bonds
25% of your savings remain in cash.
Every year you rebalance, so that what is too big is 25% again and what is too small is again 25%.
Let’s say that your equity portfolio is only 20% of your portfolio and that cash is 30%, then you buy with the surplus of cash shares, so that the ratio becomes again 25%-25%.
Some more information can be found here: https://s3.amazonaws.com/fel/pdf. ..
For shares I always use the same system:
The most important lesson to learn is that time will be your only friend on the stock market.Don’t neglect your only friend by becoming impatient.
Stay away from penny stocks or, if you buy a penny stock, pretend to buy a lottery ticket.Your money is lost in 99.9% of cases.
You will have to learn a lot of lessons and that can hurt you.Over the years I have developed a technique of investing that makes that pain small enough to keep the rest of your life on the stock market. I will tell you that technique.
For everything that can lose its full value, I do not invest more than 鈧?00.I recently purchased a stock for $150 including all costs.
When the price drops, I’ll never sell it.I don’t take any losses until those shares become completely worthless. If the price goes up, 10% or 15%, I will sell 90% of my shares and keep 10% of the shares as “free” shares.
I bought 450 lightwavelogic for 鈧?73 (I live in the eurozone and I give you examples of what I actually did, so the price is in euro) after transaction fees.I did that in October 2012.
I have not received any dividend.Until 2017 the price remained below my purchase price, but in May 2017 I sold 340 shares and received 鈧?35 in my bank account. So I have 115 shares over for 鈧?8 or almost free.
For precious metals I have two methods.First of all I buy the CEF share. That’s the only share I know that represents PHYSICAL gold and silver.
A second way is the following: Another advice I always give is to buy 1 ounce of PHYSICAL silver every month and keep it until the day you retire.In the long run, the probability of profit is greater than the probability of loss. You will not sell the silver easily for other purposes (very important), so you build your own pension capital, even if it is a relatively small sum of money. If you are 20 years old, you have lived 240 months and you should have 240 ounces of PHYSICAL silver. One ounce of silver now costs about 鈧?0. You shouldn’t actually feel the purchase, even if you have to buy two ounces the next 240 month, because you started too late with this idea. Make it for my part 10 ounces of silver per month of either 1 or more ounces of gold. I’ll give you the technique I use myself.
For bonds I would prefer to finance loans from one or another crowd-LENDING company.I work together with Funding Circle.
I invest 鈧?00 each month in one category A and B loan. I never go for category C and above because they are too unsafe.Make it a priority to not lose money on those loans, so go for the safest categories.
Go for a lot of loans, which reduces your risk of problems.
On the price of silver I can say that I have made a study that everyone can repeat themselves and I can assure you that in the long run the probability of profit is greater than the chance of loss.
I pretend to buy 12 ounces of silver every year at the end of the year (to make it visually easier to understand).I pretend or I start in 1979, because Silver was then at its most expensive to drop a few years later from $50 to $5 or a loss of 90% to reach in the next 30 years or so never more the price of $50. Will there be a profit, or is it a loss?
From 1979 to 1999 I use USD ($).Later I use EUR (鈧? to use your currency or pretend 鈧? equals $1. This does not affect the overall outcome of the study.
Even in this exceptionally bad situation, we end up with a profit.
In the long term, one should not be too worried about the value of its silver investment if one buys the same amount of silver each month.
This is a somewhat separate investment idea.
I came up very recently.
In Europe, Governments are convinced that everything should go electrically in the future.No more gas to burn, no more cars on gasoline and so on.
That means that a lot of copper will be needed for power wire.However, global production capacity is too low and it takes years to increase that capacity so that future demands of copper can be fulfilled. That means that the copper price should rise enormously.
However, no one can predict the future, so no one can say with certainty that the prediction is correct and that the price of copper will also really increase enormously.
If your hands are on your body and a place to store copper, keep your eyes open for every opportunity to collect copper for free and in a fair manner.Save it and wait.
If you do not pay for the buyer and you can save at no cost, you can not make any losses on your investment.You can only make profit or even big profit.
I do not give any financial advice.You must act on your own responsibility.
Find Small things you can save on every day.Something small if your own sandwiches versus a prepared meal or dish at the restaurant can mean a saving of 鈧?0 per day. It doesn’t seem like much but on your entire career this means you can buy a 2nd house against your retirement. Just by eating a sandwich every day that you prepare yourself than to go to restaurant or caf茅.
Oh well, if you deserve more, it’s also going on. So don’t find yourself pathetic that you have to spare to keep some over.Save 10% for yourself and 10% for your children, you can not spend it on them and you are well aware.