Spending Less to Invest More
The process of generating wealth, which can be achieved with even minimal income, requires commitment to basic measures. The measures that can lead to the generation of wealth, if properly implemented are highlighted below.
It seems pretty obvious that budgeting should be one of the top measures implemented to spend less and invest more.
As cliche’ as budgeting may seem, it still serves as an established means of spending less of one’s income and investing more of the income.
For budgeting to be effective, a budget has to be functional and include all kinds of expenditure, from the emergency expenses to the regular expenses.
Penalties for exceeding the budget should also be stated and implemented appropriately. An effective budget should be a proper reflection of one’s financial habits and should aim towards cutting unnecessary expenses.
Allocating funds to separate accounts
Having separate accounts, especially savings account, where different categories of funds can be kept is another measure that can be implemented to ensure the most minimal spending.
The allocation of funds to different accounts works better when measures for ensuring that the allocated funds for a specific purpose are not used for other purposes.
For example, an account where regular savings are kept should not have a debit card to ensure against undue withdrawals.
Restricting luxury expenditure Continue reading “KICKING OFF 2020 WITH AN INVEST MORE SPEND LESS DEBT FREE LIFESTYLE”