How to become rich? Is it simply by earning more money or saving more money or spending the hard earned money wisely? It is actually the combination of all three. But there are people who think it is enough if you just earn more and save considerably. Spending wisely is even more important than these.
We should learn to buy more assets such as real estate, stocks and other investments and less and less liabilities such as car, bike, mobile, watches with the money that we earn. Assets fetch you money whereas liabilities empties your pocket.
Here are some tips to manage your money
1) Save/ invest first with your income and not spend it on buying liabilities.
2) Do not spend more money than you make.
3) Do not touch your savings (unless for emergencies) or borrow money or use your credit card lavishly.
4) Do not try to pay off debt through another debt.
5) Make your credit card payments on time as interests on credit cards are alarming and get compounded.
6) Take control over impulse buying habit and upgrading good working items.
7) Make a budget and stick to it.
8) Keep track of your expenses.