Hey bro I bought new iPhone!! Check it out..(showing new phone to friend) Haven’t we all been there? This also applies cars, Rolex watches, exotic vacation etc
I am not saying don’t buy those luxury but make sure you have enough money to afford those.. After all we work hard enough to able to afford those!!
One of the best way to afford or buy those is be frugal and buy only on essentials in the beginning
One of the discipline rich have mastered is create the system, meaning business and investing which has been extensively discussed in book rich dad poor dad.Making money work for them!
Here are few ways to be frugal and invest the rest
1.Buy only the essentials (few pairs of clothes, footwear, good enough smartphone which does almost as the high end phone do, good enough house to live in, small car etc)
2. Save up the money and invest in buying houses or property(land, plots, agricultural land etc). Real estate always appreciate in value .To know more click here
3.Take advantage of compounding
Ex: if you have $500 and earn 10% in interest, you have $550. Then, if you earn 10% of interest on that, you end up with $605. And so on..
4.Set aside some amount of money you earn and try investing or start a business on your own..(this involves risk so make sure you get into this after thorough analysis and knowing your financial goals )
This is another good way to make money work for you.. Mutual funds are professionally managed pool of money invested by many individuals.. They have risk involved based on the returns you get.. There are many types of mutual fund.. Choose the one based on your financial goals and risk involved..
Click here to know more (india)
I know many people who have made good money through this.. Requires learning about stock trading usually basics.. One of my friends purchased stock of some blue chip company when he started working.. After few years he used the money earned to buy a car!!
7.Invest some in gold and silver
This is a good investment.. Gold and silver other precious metals appreciate in value in long run.. As always this is subjected to law of demand and supply . To know more click here
Investing is a huge topics to know more click here
What is shared above is basics about frugal living and investing stay tuned to know more