Easy Come. Easy Go. Why some people can’t hang on to money & what to do instead (part2 of 2)

Thirty-two years ago, Akinola Olufemi drove truck as  a full time job.

A Recent story says that he now leaves in his own house and also cruise around with one of the latest car models.

Whenever, he is asked how he did it, his reply is that they should save 20% of their income and invest it for the next twenty-five years.

We’ve heard many stories of people who became extremely wealthy after their retirement. Whose wealthy status is appreciating every year.

If a truck driver can become a millionaire, this means that anybody can become a million irrespective of the kind of job you have or income you earn.

All you need to is just follow the 5 A-B-C strategy below and be among the millionaire in the next 20years.

Personal Budgets
Money comes in, money goes out. For many people, this is about as deep as their understanding gets when it comes to personal finances. Rather than ignoring your finances and leaving them to chance, a bit of number crunching can help you evaluate your current financial health and determine how to reach your short- and long-term financial goals by having a Spending plan created on a monthly or annual basis, a personal budget is an important financial tool, because it can help you plan for expenses, reduce or even eliminate expenses, save for future goals, spend wisely, plan for emergencies, prioritize spending and saving.
Recognize and Manage Lifestyle
Most people will spend more money if they have more money to spend. As people advance in their careers and earn higher salaries, there tends to be a corresponding increase in spending. Even though you might be able to pay your bills,  such lifestyle can be damaging in the long run, because it limits your ability to build wealth: Every extra Naira you spend now means less money later and during retirement.

Recognize Needs Vs. Wants – and Spend Mindfully
Unless you have an unlimited amount of money, it’s in your best interest to be mindful of the difference between needs and wants so you can make better spending choices. “Needs” are things you have to have in order to survive: food, shelter, clothing, healthcare and transportation (many people include savings as a need, whether that’s a set 10% of their income or whatever they can afford to set aside each month). Conversely, “wants” are things you would like to have, but that you don’t need for survival.

Start Saving Early
It’s often said that it’s never too late to start saving for retirement. But the sooner you start, the better off you’ll likely be during your retirement years. This is because of the power of compounding – what Albert Einstein called the “eighth wonder of the world.” This is saving at least 10% off your income monthly and investing for the next 25years.
Build and Maintain an Emergency Fund
An emergency fund is just what the name implies: money that has been set aside for emergency purposes. The fund is intended to help you pay for things that wouldn’t normally be included in your personal budget: unexpected expenses such as car repairs, an emergency trip to the dentist, emergency financial help to family, friends, neighbor etc.

I know that the above steps will thermostat you to wealth

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See you soon……

Tayo ACA

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