Do you know how to manage your financials? If all reach people have something in common, that is a good management of their income vs. spending balance. They always know where their money is going and what they get in return. This is not something they got overnight, is something they’ve learned and practiced over and over again. Some of them are doing it better than the others, this is why some of them are more wealthy, but all of them are doing it.
So if you want to get rich one day you should start doing it right now. Learn how to manage your financials. Have a look at the below infographic to see how you should spend your monthly income if you want to see it grow.
“Manage your financials” infographic explained
#1 – 30% of your monthly income should go on day to day expenses like food, gas, rent, clothes and other things necessary for “surviving”. Adopt a simple lifestyle in order to stay within the budget.
#2 – 20% of your monthly income should be spent to extend your social circle. At least once or twice per month invite someone out at a restaurant and pay the dinner. The person who you invite must be better connected than you, has more money, has more influence or can help you in your career. As a result in one year, your social network will grow so much that the ROI will definitely worth it. Beside this, you will create for yourself an image of a generous and good person.
#3 – 20% of your monthly income should be invested in your education and personal development. Buy books, follow online courses or if you have enough money go to training sessions and workshops. Share the information you get with other people, debate and ask for their opinion. This could generate a lot of discussion subjects for the business dinners I mentioned above.
#4 – 10% of your monthly income should be saved for vacations and relaxation activities. It is not important if you go in several short city breaks or you take 3 weeks in the summer for a longer vacation. What matters is to take a break from the daily routine and visit new places. Visiting other regions and cultures could help you to broaden your horizon and get new perspectives.
#5 – 25% of your monthly income needs to go into investments. Go for small businesses while keeping your current job. If you succeed it will give you a huge boost and if it doesn’t work there is no problem, you will not lose a big sum of money. Along the process, you will learn o great deal of things and gain an irreplaceable experience.
The amount of money you earn for the moment is of no importance. Try to accommodate with what you have and try to use this plan. On the long run, you will definitely see good results.
Tip: save some money when going on vacation and not only, and learn how to get cheap plane tickets.