11 Easy ways to end your money worries to start 2024
The wealthiest 20 percent of
Americans own 84 percent of money. The planet’s top 20 percent corner 85
percent of money. These numbers are shocking. Money is more powerful than
governments.
Money is a means, not an end. Money
is for freedom, not slavery; for security, not worry. Unless money is used to
give you greater freedom and happiness, accumulating money is a burden.
Be specific. You want to be free
of money worries? Fine, but what does this mean? Enough to live with no income
for six months? Two years? Having a particular sum of money in the bank?
Can money buy happiness?
Yes, if you’re poor. “Money is better
than poverty"
If we’re starving or homeless,
money can bring a better life. But beyond a certain point a surprisingly
low point more money doesn’t deliver more happiness.
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There are many difficult
ways to save. Budgeting is one. Budgeting doesn’t work because unexpected
expenses always blow you off course. Happily, there’s an easy route to
saving.
1- Save and invest 10 percent of
your income before you receive it by having it automatically channeled into a
savings account.
2- Do this as early as you can in
life which means NOW! Frankly, this is 95 percent of the advice that anyone
needs. This is the easy way to end your money worries. No other way is remotely
as powerful.
3-No investment is as good as
paying off your credit card debt.
4- The next best investment
is to “retire” all your other debts. Start with the most expensive. Even though
mortgage, property bond, interest rates are now very low, it’s almost
impossible to find an investment as attractive as paying off your mortgage,
when you have the savings to do so.
5- Cut up your credit cards.
You’re bound to spend less. If you need a card, get a debit card so you can
only spend what you have in the bank.
6- Be more selective in
buying things. Only spend money on the few items that really make you happy.
Spend more on the 20 percent that gives you 80 percent of pleasure, and less on
the rest.
7- Ask yourself, “Do I really
enjoy this item I’m spending money on? Is it really in the 20 percent of items
giving me 80 percent of satisfaction from spending?” If not, cut it out. You’ll
have more money for the best 20 percent of spending and more life energy too, you
won’t need to spend so much time earning.
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8- Go for cheaper items that
deliver most of the benefit. A two-year-old car may be 95 percent as beneficial
as a new car, at just 60 percent of the cost. Second-hand furniture may cost
only 20 percent of the new price.
9- With spare cash, buy
assets that promise income or an increase in value: for example, any sort of
land or property, art, or collectible items. Pick anything that delights you
and appreciates.
10- Save half any pay raise.
Increase your automatic saving before it hits your bank account.
11- Spring clean each year
get rid of the clutter. Give away the small items, sell the valuable ones, and
invest the proceeds.
You can go ahead and instruct your
bank to deduct 10 percent of your monthly income and put it into a savings
account. You can then look forward to a life without money worries. Or you
can do nothing.
Go ahead. Do it now. It takes five minutes to arrange. The benefit, for the rest of your life, will be enormous.