“The rich invest their money and spend what is left ,
The poor spend their money and invest what is left “
Your financial journey begins with what you do with a 100 rupees. It’s not the amount that counts, it’s the plan that counts. Your spending habits determines your financial situation.
This is specially for teenagers, you should not spend more than Rs.60 , spend your money to buy the things you need or want.
Now the other Rs.40 , distribute in 30 and 10 rupees.
Here is the most important thing , Rs.10 for the Charity . People rarely give money away as intelligently as they make it. When it comes to donate few bucks to charity, most of the people make excuses like , “When I will become rich ,then i will donate” or “I don’t have money for the charity”. But if you don’t practice to donate money in your present financial situation then you will never be rich enough to donate.
Now the next Rs. 30, use this money to invest and make your money work for you. You can invest your money in different ways.
Invest in yourself .
- Buy some books.
- Learn a new craft.
- If you are fond of writing , then start a blog. Buy a domain from Godaddy.com and then monetize your blog. Many teenagers are already crushing it.
- You can create a podcast about what you love.
You can invest in assets that builds the passive income. Invest in stocks, for that you need to open a trading account . You will be paid dividends and the price of the stock will also rise. Research properly and read financial statements of companies before buying any stock . Invest your money only in those businesses which you have basic knowledge.
You can also Invest in real estate and rent that property. It’s a great source of passive income. Important thing about the real estate is if you sell a real estate then you are making a living and if you are buying then you are making a fortune. I hope you got the message.
If you are grown up now and you have to pay for debts and mortgages. Then you can distribute your money accordingly. Create a budget , if you know your expected income next month, write that number down. Then start applying that money to different things. Start with taxes and savings and then move to housing, food, insurance, utilities, transportation. Finally, apply the rest of your income to other things you need or want.
In order to achieve a financial freedom, don’t buy stuff you don’t need, control your expenses and invest more and more money to buy assets.