Also, it’s one of Stacy Johnson’s golden rules. In his words, “debt is not complicated. Paying money to temporarily use other people’s money makes you poorer. Charging money to allow other people to use yours temporarily makes you richer.” For him, there are only two cases in which he considers it acceptable to take out a loan and pay interest: when it is necessary to survive and when you will earn more money with what is financed. than with what you have paid to finance it.
Spend wisely and reduce expenses
“In general, getting richer each month is as simple as spending less than you earn,” Johnson said. In addition, the experts consulted by GoBankingRates recommended making a checklist with the priorities of how to spend money (debts, savings, fun, emergencies…), limit expenses and save 25% of the income. Warren Buffetone of the richest people in the world, stressed: “The biggest mistake is not learning the habit of saving properly.”
Invest in a diversified portfolio
Bill Gates, the fourth richest person in the world, has investments in the health sector, a third in equities and shares in Microsoft.
Invest in your professional career (also in your life)
Warren Buffett is known for always defending and recommending investing in one’s own person, including the aspect of health: “You only have one mind and one body. And it has to last a lifetime. But if you don’t take care of that mind and that body, They will be a disaster 40 years later.
Find an alternative source of income
The key to making money until you are rich is also to find sources of income that complement the main one, such as some flexible extra work for a few hours a week.
According to a Business Insider article, alternative income can also be generated from investments, cryptocurrencies, real estate purchases, hobbies, etc.
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5 foolproof tips from Warren Buffet and Bill Gates to get rich