Cut your Spending and Save your Money to Build Wealth Over Time
You should cut your spending and save your money to build wealth over time. You can invest and purchase money making assets (bonds, some types of real estate, an established business, est.) to grow your wealth. However, most people will not be able to purchase these assets. The bottom line is that the average person can realistically build their wealth over time.
Cut your Spending
Reduce your spending on items and other goods. You can cut back on small conveniences such as buying cups of coffee or takeaway from restaurants. You can also stop going out to the pub or theatre to save a few bucks. The whole point of reducing your spending is that you are keeping more money in your pocket. Think about this. If you purchased a fizzy pop everyday it would cost you about £51 per month or £612 a year. However, if you didn’t spend money on fizzy pop and put this money in savings, you would have £612 within a year’s time. While this might not seem like much, this is how much money you would give away to a soda manufacturer who makes your favorite fizzy pop drink. The point is that you should cut back on spending for various products. If you drink alcohol, try to reduce your drinking to once a month. If you buy a lot of inexpensive products, just cut back on them over time because they too can also add up.
Save Your Money
People who put away at least £100 a month will have £1200 over a year’s time. If you can’t put away at least £100 a month, do what you can. The point is to save something and reduce your spending. If you can realistically do this over the course of a year, you should have at least £2,000 with a 12-month time period. This is practical financial advice that will put money in your pocket in a relatively short amount of time.