You might not have the highest paying job in the world, but that certainly doesn’t mean to say that you can’t live the high life (eventually, at least).
Sure, having a high income is something that can accelerate your growth, but shrewd habits can help you no-end as well. Again, it will take time, but through the course of today’s post, we are going to outline some basic habits that you should adhere to in a bid to grow your bank balance in the long-term.
Track your spending… and forecast future expenses
One of the most interesting things about a lot of people who want to increase their wealth is that they don’t quite understand their current financial position. Sure, they might know they have “around” this much in the bank, and have two credit cards as well. In terms of the specific expenses, they don’t have a clue, though.
They’ve forgotten about the Netflix subscription they never use or the energy contract they have never tried to negotiate with. Instead, everything is up in the air, and it means that making progress in tracking your expenditure is very difficult. Then, there are the future expenses. Again, expenses don’t stay the same – they are forever changing and evolving. Your mortgage might be a current expense, but in the future it will become kids’ university fees, help with the grandchildren, and in turn, this will be replaced by funeral care. This is something else that is not often considered, but needs to be addressed nonetheless.
Shop without credit cards
No, we’re not totally against credit cards (see our next point). The thing we’re trying to say is that when you shop with any sort of card, you don’t see the money disappear. It’s virtual – and this means that it has very little impact from a psychological perspective.
If you shop with cash instead, you will find that the process of handing money over is much harder to get over – and you are therefore less likely to spend as much.
…And pay more than the minimum on your credit card
Credit cards can work very well for some people – but only those people who pay them off in full every month. If you don’t fall into this category, you are paying through the nose in interest.
If you have any doubts that you can achieve this, don’t even get one. They will result in you leaking money and in the worst-case scenarios, spiralling into debt.
Take an active interest in your pension pot
Finally, the “set and forget” method of pension pots is something that you should be avoiding at all costs. This is something that could lose you money in the long-term, or at least not gain you as much as it potentially could return.Contrary to popular belief, pensions are investments. A company is investing on your behalf, and most of the time, you can select what type of funds to sway towards. Some of you might opt for riskier ones, while others may prefer a safer bet. Either way, keep tabs on spending and track your performance.