Whether you are planning to launch your own business, taking a trip outside your hometown or purchasing a new house, you can only achieve it when you have enough cash with you. You many have always dreamt of devoting more time with your family members but you can only have the desired free time when you have adequate financial security so that you need not spend your precious hours sweating it out.
If you have always made your financial resolutions, you can one of these easy ways to build your wealth so that you have a proper financial back up during your rainy days.
1. Seal the discovered leaks
Take a note of your annual as well as monthly recurring expenses; there may be many. Some of them would be expenses related to your health club membership, Internet, cable TV, phone bills, bank fees, car insurance, annual fee for credit cards insurance for your home etc. Your next step should be to find out which of these expenses you do not use much. For instance you may have taken an Internet connection with 12 GB download facility whereas your consumption rate is not more than 7 GB every month. In this case, you can opt for a cheaper download plan and thus save more money.
2. Find a budget that you can stick to
You should try to stick to your budget by keeping it simple. Your contribution to retirement fund is already deducted from your salary in all probability. You should stick to a particular figure as far as your groceries, utilities, transportation and house loan is concerned. They should not exceed over 50 percent of your net salary. At least extract 20 percent of that amount for savings and debt allocations. This is the money to meet your financial goal. Whatever money is left with you that should not be higher than 30 percent of your monthly pay should be divided by 4.33 to arrive at your weekly allowance. This is the money you should pay for expenses like entertainment, dining out, shopping and other miscellaneous expenses.
3. Earn extra money
If you have debts, try to come out of it by making more money. To do this, you can have a plan for requesting for a pay hike, if you are in a regular job. If you are a freelancer, you can ask your clients to increase your rates or take up a side job for contributing your extra income towards repayment of debts.