Would you like to invest your spare change? Then use Acorns. Acorns rounds up all of your debit and credit card purchases to the nearest dollar and invest the change.
Everyone would like to one day to become rich. But very few are willing to do what it takes to get there. It is possible to get rich, but you have to work hard. You have to have discipline and courage. If you’re serious about getting rich, follow these 5 money tips.
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1. Have Multiple Income Streams.
One of the best money tips that will make you rich is to have more than one income stream. An income stream can be active like a traditional 9 to 5 job or a side hustle job or something more passive like income from a blog.
Most wealthy people, if not all, have at least two income streams like investment in a startup, investment in the stock market or the real estate. This way if the economy is not doing well, they have another income stream to fall back on.
2. Focus on Building Passive Income.
Not only should you have multiple income streams, but also you should focus on building passive income. Passive income is, in simple terms, income you earn without actively trading your time for it.
Whereas active income is income you earn while you are actively involved. Earning income from working at a 9-to-5 job is active income; earning income from collecting rent as a landlord is passive income.
Focusing on passive income is important because it allows you some free time to spend on other things that you actually enjoy while at the same time earning money.
This is quite different from active income where you trade your time for money. You simply cannot build wealth if you rely on your work to generate income.
Focusing on building passive income is a better alternative than active income. There is only so much time in a day, so it’s hard to build wealth quickly when you’re trading your time for money.
Now, I’m not suggesting that you don’t have to work to create passive income. To create passive income, you need to put a lot of work upfront and reap the benefits later.
Some examples of passive income include:
a) earnings from internet ads or from affiliate marketing in a blog or website you own;
b) rent from rental properties you own;
c) dividends from stocks, mutual funds, etc.;
e) profits from businesses that you own.
3. Increase Your Income.
One piece of advice out there in terms of how to get rich is spend less and save your money. This is, by any means, good advice. But focusing solely on spending less and saving, will not make you rich. It can keep you out of financial trouble, but it will not make you rich.
To get rich, you need to focus your time a lot more on increasing your income. Look at it this way, a person making $50k a year with 3 kids to feed, will less likely become rich by saving her money. In fact, he or she can barely save anything.
The focus should rather be on increasing money. Changing your job is a good way to boost your income. Asking for a raise is also a way to increase your income. Getting a raise is great because it doesn’t require to trade more time for more money, but a bigger paycheck.
4. Take Advantage of Tax-deferred programs.
One strategy to get rich is to take advantage of any tax-deferred programs available to you, whether putting your money in a Roth IRA or 401(k), etc..
If an employer 401k is available to you, why not take advantage of it. Many employers match your contribution to a 401k, so you get pretax investing, tax-deferred compounding, and an extra bonus from your employer.
You simply cannot beat it, because your contribution comes right off the top of your paycheck before taxes, all of your earnings compound tax-deferred, and many employers match your contribution, and your contribution is automatically deducted from your paycheck; you never see it and you never have to make the decision of not to invest.
Would you like to invest your spare change? Then use Acorns. Acorns rounds up all of your debit and credit card purchases to the nearest dollar and invest the change.
5. Pay off Your Debt.
The more debt you have, the less likely you will become rich. If you have a lot of credit cards debt, pay off the one with the highest interests first. The first step in deciding to pay off your debt is to know what your credit score is.
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