MONEY

3 Money Habits That Separate the Wealthy From the Poor

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Here is an exciting thought! Why not work part-time and take part in your own finances? And how would you feel if you could honestly say, “I’m working to get rich. I don’t just work to pay off my debts. ”When you have a wealth plan, you will be more motivated to have a hard time sleeping at night.

So if you can please me, I would like to share a simple formula for building wealth. Here is my opinion on how the money should be allocated.

70/30 Act
After paying your fair share of taxes, learn to live up to 70 percent of your tax revenue. These are the needs and luxury you spend money on. Then, it’s important to look at how you divide your remaining 30 percent. Let’s share it in the following ways:

Generosity
Of the 30 percent unused, one-third should go to the site. We encourage the act of giving back to the community and helping those in need. I believe that giving 10 percent to your tax income after the good value you should strive for.

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The act of giving should be taught in advance, when money is scarce. It’s really easy to get a dime out of a dollar. But it is very difficult to spend $ 100,000 on $ 1 million. He says, “Oh, if I had a million dollars, I wouldn’t have a problem giving $ 100,000.” I’m not so sure. $ 100,000 more money. Start early so you can develop the habit before the big money arrives.

Capital Investment
For the next 10 percent of your tax revenue, you will create wealth. This is money you will spend on buying, repairing, producing or selling. What matters is commercial participation, even if it is temporary.

So how do you go about creating wealth? There are many ways. Let your mind wander. Focus on those skills that you developed in your workplace or in your hobbies; you can turn this into a profitable business.

In addition, you can also learn to buy the product from wholesale and sell it for sale. Or you can buy a local clip and upgrade it. Use this 10 percent to buy equipment, products or equity – and get started. It cannot be said that an artist inside you is waiting to be awakened by a spark of opportunity.

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Saving
The last 10 percent should be included in savings. I take this as one of the most exciting parts of your wealth plan because it can give you peace of mind by preparing you for the “winter” of life. Let me give you a definition of “rich” and “poor”: Poor people spend their money and save the rest. Wealthy people save their money and use the rest.

Twenty years ago, two people earned $ 1,000 a month and each received the same increase over the years. One had a philosophy of spending and keeping the rest; the other had a philosophy of prioritization and residual use. Today, if you were both aware of that, you would likely call one poor and the other rich.

Therefore, remember that generosity, investment, and savings, like any other discipline, have a hidden effect. At the end of the day, week, month, the results are almost invisible. But let it last for five years and make a difference. At the end of 10 years, the difference is huge.

And it all starts with the same amount of money – just a different philosophy.

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