Stop whining and take responsibility for your financial well-being.
Why exactly a million
A million is a treasured amount for many. Six zeros give status to savings and tickle your sense of self-importance. But there are nuances here.
Chances are you are already a millionaire.
If you add up the cost of everything you have right now, the total is over a million. It’s just that not all of your assets are liquid. Let’s say that they will buy an apartment from you quite easily and, most likely, you will be a plus. But if furniture, clothing and so on are sold, then obviously with losses.
It turns out that you had a million and you spent it.
Are these costs always reasonable? Of course not, you are not a biorobot. But they could definitely save part of what they spent or invest in making money profitable. So do not rush to scribble angry comments that you will not get rich with your income.
A million is a little
With a salary of 20 thousand, it looks like an unattainable peak. Even if you kept the entire earnings, you would have to save four years and two months. If you save 50 thousand a month, the term will be reduced to one year and eight months.
When numbers come into play, a million doesn’t seem like such a huge amount.
To get a million, you need to turn an idea into a goal. Perhaps this will be an extremely long-term task. But you will clearly understand how and when you can achieve what you want. You will have to draw up a plan of action and follow it. And this is definitely more productive than whining.
Read also: How to Gain Financial Independence as a Woman.
The first million will be decisive.
If you are a top manager of a state corporation with a salary of 500 thousand a month, then this is an exception to the rule. For the rest, a million will be a significant amount that will make you feel calmer and think about investing money.
Several hundred thousand rubles do not possess such magic, although a minimal amount is enough for investment. First, you need to take care of a reserve fund that will feed you in unemployment or serious illness. Anything over a million is easier to count as surplus. They can be put into circulation.
You will also feel very different psychologically. You are not on the Forbes list, but you are a true millionaire.
Why poverty is a habit
You may be accustomed to scolding the government for not doing the right thing and putting a spoke in your wheels. To believe that you can become rich only through theft and bribery, and you are honest and, therefore, poor. Wait for the fairy godmother to arrive and turn your pumpkin into a huge fortune.
Consider the real situation. The state really owes you a lot because you pay taxes. But resentment is not enough to achieve justice. Some get rich by dishonest means, and that is a crime. Others make money legally, for example, with the registration of an individual entrepreneur and without SMS. But the latter work hard. And you rely too much on the fairy godmother, which does not exist.
Perhaps you really spend a lot of energy and not get rich. But if you do nothing at all, everything will definitely end in failure.
Here are some habits that keep you from pushing off your bottom line and surfacing.
1. You think small
If you have ever watched a reality show about people from disadvantaged families, you probably paid attention to such cases. A person gets a not so significant amount – 50-100 thousand rubles. And he says: “Finally I can buy anything! I’ve always dreamed of it. ” It’s sad, but let’s leave emotions aside.
To make a person’s wishes come true, 50 thousand is enough for him. Does he have the motivation to try if the bar is so low? Everything seems to be better with you, but not much. You turn into a lifelong dream, a goal that can be achieved in a couple of years or less.
Start thinking big, as if you have no limits. Determine the framework later.
2. You don’t set goals
As long as you lie on the couch and dream of getting rich, this is an empty pastime. How much to get hold of, if you count in rubles? What should you do to get closer to your goal? What stages are appropriate to highlight to move towards a brighter future faster?
Perhaps you have goals, but you did not choose them. This is the other side of the same coin. You are trying to buy a car because you have to. But they have never thought about whether you personally need it.
It’s much easier to let life take its course and be dissatisfied with it than at least try to control it.
3. You spend all your money
The most typical habit of a poor person: as soon as additional income appears, this money is instantly spent. At first, it was out of necessity – there was not enough money. Later the habit carries over to higher wages.
The phrase “I don’t understand where the money is going” has its legs growing from here. It is effortless to figure out where earnings are disappearing. You have to keep track of expenses.
4. You are delighted with what you have
If you take any steps, then only after a magic pendel from your family or employer. But that doesn’t make you more successful.
Nobody is obliged to pull you. If everything is bad with you, then guess who is to blame? You.
5. You do not take responsibility
It starts with little things and extends to bigger decisions. You never admit your guilt and are always looking for someone involved in your failures. You are late due to traffic jams, did not advance in the service because of the foolish boss, you cheat because your partner has ceased to look after himself.
There is a direct link between willingness to take responsibility, quality of life, and earnings when it comes to money. Millions will not fall on you as soon as you change your attitude towards life. But the chances of making at least a small fortune will be greater.
6. You are afraid to take risks
The proverb about a tit in our hands has been hammered into our subcortex since childhood and prevents us from achieving success. This is not the best guide to action.
If you have an average job and salary, then leaving everything and starting something new is scary. You can lose good things in pursuit of the best. But think long-term: are you ready to be content with this normal all your life?
Nobody calls to rush into the pool headlong. Any risky action must be based on reasons, calculations, calculations that increase the chances of success. But it would help if you did this in any case.
How to increase income
You don’t have to go into IT to get paid a lot. You can have a working professional, but you must be unique in it. If you do your job better than others, you get paid. You will be searched for and lured into your company for a big salary if you are worth it. But you have to invest in yourself, work hard, and study.
Open your business
Wage labor is relatively stable and reliable. But you always have a ceiling on your earnings, measured by your salary and in some cases a bonus. This is a plus or minus constant amount.
You begin to manage your income when it directly depends on the efforts made. For example, you are a digger. If you work for a salary, it doesn’t matter how much you dug. The salary will be the same. With piecework, you can dig a 10-meter trench per day for 1,000 rubles or 30 meters for 3,000 – everything is in your hands.
Your business is not a walk in a chamomile field. Rather, a path along a slippery path in the middle of a swamp on stilts and with three bags of cement on his shoulders. And everything around is on fire. But if you find the right path, there is a chance to get to solid ground, build a house out of cement, and fry a steak over that eerie fire.
Suggest something new
Look at all these millionaire youths who are on the news for some reason. Don’t look at the children of billionaires. We are interested in startups, inventors, and other guys who sell their projects to business sharks or successfully rule them themselves.
Their ideas shoot out because they are new. Or old, but repackaged in such a way that people are still delighted. It isn’t easy to offer. If thousands of years before our era, it was enough to roll out the wheel to the tribesmen, now you have to think about the project a little longer. And yet, the field for inventions remains.
Look for passive income ideas.
The best way out: while you are making money, something else is filling your pockets. And if you stop working, the passive source of income will not stop.
What to do with money
According to Sergei Leonidov, the general director of the financial aggregator Sravn.ru, the opinion that it makes sense to think about investments starting from a high amount is a myth. Even 1 thousand rubles can be invested in several ways. So start small. But you need to learn a few basic rules:
- Understand what level of risk you are prepared for. The higher the risk of a financial instrument, the greater its profitability. Before investing money in the stock market, decide for yourself if you are ready to lose it. If not, it’s better to find fixed income options. The simplest is the contribution.
- Determine the term for which you invest. In the short term, stocks may fall in price, and the market may crash. But over a long period, they usually grow. If you need investments in a year, it is better not to experiment with the stock market.
- Never invest in something you don’t understand. If, after studying the question, you do not understand how the tool generates income, it is better not to invest in it. There is a risk that this is a pyramid scheme.
Among the simplest working tools for increasing savings, Sergey Leonidov names the following.
Some Russian banks accept deposits from 1 thousand rubles, although the generally accepted minimum threshold is 10 thousand rubles. The rate, depending on the amount, hardly changes. Now the profitability of deposits for the year is slightly more than 8%Basic level of return on deposits annually.
Risks: low profitability, which may not offset inflation.
Cards with interest on the balance
Many banks issue cards with interest on the balance. An option for those who may need money during the year. If you close the deposit early, then in most cases, the interest will burn out. This will not happen with cards. But the interest in them is usually lower than on deposits.
Risks: unlike a deposit, where the rate is spelled out in the agreement and is valid for the entire period, the bank can change the interest on the balance at any time.
Another analog of the contribution. Many banks can open a savings account right in the application and close it at any time without losing the interest already earned. Usually, the rates on it coincide with the interest on the balance. The convenience is that the money is isolated, and you will not accidentally spend it.
Also, many banks can set up automatic replenishment. For example, once a month from your salary. A good option for those who are not confident in their financial discipline.
Risks: as with a card with interest on the balance, the savings account rate may change.
Mutual investment funds (MIFs) are a constructor of several stocks or bonds made by a management company. An investor can buy one share. The price starts at several hundred rubles. Subsequently, this share can be sold – at an increased value, if all this time, your shares and bonds have been generating income.
Risks: You have to pay a fee to the company every year, even if the fund suffers losses.
Also read: 8 Ways to Save on School Fees
It is a tool similar to a mutual fund, invented abroad. He usually copies a stock index, for example, of American technology companies. Indices tend to rise, so this instrument is considered the most reliable stock market for a simple investor. In Russia, the easiest way to buy ETFs is through the applications of brokerage companies. In all cases, there is a service commission.
Risks: in the short term, the rate may fall.
Bonds are issued by companies, Russian regions, and even the Russian Federation itself. If you do not want to understand this tool’s intricacies, you can open an account with a broker. Large brokers have consultants who will tell you how everything works and help you choose bonds. You will need a brokerage account to purchase. As a rule, you have to pay for its service. There are also commissions for purchasing securities. Their amount depends on the broker’s tariffs.
Risks: unpredictable profitability, the bankruptcy of the issuer that issued the bond.
You support someone else’s business with a ruble and receive gratitude for it in ma0terial terms. Now there are several sites where an ordinary person can lend money to a business. As a rule, this amount is from 10,000 to 500,000 rubles—for example, Alfa-Bank’s Potok, City of Money, OZON. Invest is a service of the OZON online store, which should start working as usual in 2019. Sberbank launches a similar service.
Risks: defaults by companies you loaned money to.
What it takes to become a millionaire
- Stop whining and take action.
- Reorganize to a different way of thinking.
- Learn to set goals and take risks.
- Don’t stop halfway and achieve your goals.
- Making friends with mathematics and analytics – if numbers do not support your actions, this is the road to nowhere.
- Explore investment instruments and try different options.
- Be prepared for the long road to riches and full of restrictions and plowing.
- Stop being jealous of those who got rich easily: you have already failed. Pull yourself together and find your way.
Adapted and translated by Wiki Avenue Staff
Sources: Life hacker