Things You'll Need:
- A plan
- Common sense
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Step 1
You need to stop chasing get rich quick plans. The best way to get rich quick is to get rich slow.
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Step 2
Your income is what will get you there. You have to commit to living below your means. That means not changing your lifestyle just because you get a boost in income. You must stay away from debt. Just think of what you could do with your income if you were not giving it to credit card companies and banks your whole life. When you spend your hard earned cash use cash. It hurts when you count it out. That pain will help to keep you from over spending.
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Step 3
Live on a budget. You need to spend everything you make on paper every month. When you know where your money is going it is real easy to whip it in to shape. You need to make time for this. Once you see where all your money is going you can cut out the extra spending. Loose spending is the best way to stay broke. There are people out there making 100k a year who are broke. All because they don't tell their money what to do.
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Step 4
If your are in debt now stop borrowing money! You need to work your way out of debt. We all need to learn how to delay pleasure. Right now we live in an I want it now I'll pay for it later society. We have to break that cycle if we ever want to prosper. One way to get your debts payed off is to list your debts smallest to largest pay the minimums on all but the smallest then send everything you can to the smallest one until it is gone. Once that one is gone take all you were sending on it and start paying it down on your next debt etc. etc. As you move up the latter of your debt you will have a bigger axe to chop it down.
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Step 5
Once you are out of debt. All that money you earn is yours to save and invest for the rest of your life. Once you are ready to invest talk to a good financial advisor to help you make your money work for you.
Comments
jfargo said
on 3/28/2009 All good advice. Let's hope more people listen to it.
soanyway said
on 3/28/2009 Very good advice! It's going to be hard for a lot of people with the way the economy is today. Credit is our enemey! I have recomn'd you
Mandica said
on 11/24/2008 I think these are some really good tips. I don't know if it will happen quickly, but eventually you will definitely be in better financial shape. It may hurt now, but one day it will be worth it!