It is always everybody's wish to reduce expenditure and increase income. The fact has seen individuals coming up with budgets to help in checking their weekly, monthly or annual expenditure.
Maintaining a “fat wallet” throughout the month however still proves to be elusive to many, this is because of the ever increasing living standards and lack of jobs mostly in the developing countries.
In the developing economies, most people live on less than a dollar per day. Debts, expenses and bills becomes the daily life of such people. The life style that revolves from hand to mouth denies them an opportunity to invest and make more money in stock, treasury bill and in government or corporate bonds.
While many low income earners struggle to squeeze part of their meager earnings into worthwhile venture, people with huge monthly income finds it difficult in observing money descipline, they are also living on higher liability base resulting into financial insecurity. According to financial experts, the only way to ensure money independence is by paying yourself before spending a single coin.
In order to realize the value of your hard-earned cash, it is advisable to save first before spending. It is wise to open up an account where a given percentage of your monthly income will be saved. Extra money which comes as a result of pay hike or even incentives should be channeled to such an account.
Always embrace savings in stock market, unit trust and insurance schemes. Saving in such institutions earns one interest or dividends. In order to increase your earning, you can open up extra account to re-invest the accumulated interest. Any reap off earned from the sale of a share could be used in buying share from a different listed company.
In increasing your asset base, it is in order to be prompt and compliant in servicing loans. Skipping loan payment only leads to accumulation of interest charged. It is advisable to adjust the payment rate of your loan, this could be done by channeling any extra amount of money on the re-payment.
Multi-tasking comes in handy in creating more income, this could be done by getting additional employment or opening up a private firm in line with your profession. Coming up with a grocery or a canteen also helps in generating additional income.
Always invest in retirement schemes, they are not heavily taxed and assist at old age.