You are planning to visit new places but you do not have enough money. You’re planning to buy things that will make your life easier but you cannot afford it. Money is sometimes the reason why we are being constrained on doing what we want.
So, what are the steps on how to have more money?
According to George S. Clason, author of “The Richest Man In Babylon”, below are the seven steps on how to have more money. He called it the Seven Cures For A Lean Purse.
The Seven Cures For A Lean Purse
(How To Have More Money)
The First Cure: Start Thy Purse To Fattening
“For every ten coins, thou placest within thy purse take out for use but nine. Thy purse will start to fatten at once and its increasing weights will feel good in thy hand and bring satisfaction to thy soul.”
Save money first. Pay yourself first. We always heard these words. It is the first step to achieve the financial freedom you are dreaming of. By saving first, you can start growing your money through investment.
Personally, saving 10 percent of your income is not that really hard. Given that you are living within your means, you can even save more than 10 percent of your paycheck.
Saving money can be difficult especially you are a newbie. You need to develop saving money as one of your habits.
The Second Cure: Control Thy Expenses
“Budget thy expenses that thou mayest have coins to pay for thy necessities, to pay thy enjoyments and to gratify thy worthwhile desires without spending more than nine-tenths of thy earnings.”
The best way of controlling your expenses is through budgeting. By having a budget, you are taking command to your money on where it should go. You will have an overview of how you are spending your hard-earned money. Budgeting also ensures that you will always have enough money at the end of the month.
He suggested that you should limit your spending to 90 percent of your net income. It includes all of your necessities, your wants and other luxuries that you want in your life.
Look for different budgeting methods. When it comes to budgeting, my method may or may not work for you. There is no one BEST budgeting method and that will work to everyone. Start budgeting by choosing one of the methods that you think suits you well.
The Third Cure: Make Thy Gold Multiply
“To put each coin to laboring that it may reproduce its kind even as the flocks of the field and help bring to thee income, a stream of wealth that shall flow constantly into thy purse.”
In order for you to increase more your cash flow, you need to start investing your spare money. There are many ways on how you can grow your money. You can start by building your own business, investing in mutual funds or the stock market.
Time will come that you don’t have to work hard anymore for money but money will work for you. You do not need to work 8 hours per day. You can freely do things that you love because you are in control of your time. Eventually, you can fire your boss because you are now the boss. Sounds great, right?
The Fourth Cure: Guard Thy Treasures From Loss
“Guard thy treasure from loss by investing only where thy principal is safe, where it may be reclaimed if desirable, and where thou will not fail to collect a fair rental. Consult with wise men. Secure the advice of those experienced in the profitable handling of gold. Let their wisdom protect thy treasure from unsafe investments.”
Be careful when investing your money. It can be really risky especially if you do not take time to study and understand it well on how it works. Research first on where you are going to invest your money – what are the things you need to consider before investing.
Do not be afraid to ask other people who are in that field. If you want to invest in the stock market, ask people who are doing it. Invest only on the things that you understand no matter how high the potential that you can earn a lot.
You don’t have to learn on your own mistakes, learn also from the other peoples’ failure. Through this, you can eliminate unnecessary failures in investing.
The Fifth Cure: Make Of Thy Dwelling A Profitable Investment
“Own thy own home.”
Nowadays, there are still a lot of people who do not have their own house yet. Some of them are renting or even living with their parents.
Having your own place has some advantages. In the long run, it is cheaper than renting. You can build your house based on your taste and modify it in any way you want. You will not have any landlords to bother you when it is now time to pay for your rent.
You can even take pride in your house that through your effort you will able to have one. Live there the way you want and how long you want.
The Sixth Cure: Insure A Future Income
“Provide in advance for the needs of thy growing age and the protection of thy family.”
It is really advisable to have a steady flow of income to cover not just for your current needs but also for your future needs. You need to make some necessary steps in advance to secure your future as well as your children’s future.
Some ways of securing the future are by having health insurance and life insurance with investment. Health insurance helps you when you have an illness. In an unforeseen condition wherein you need hospitalization you can have less payment due to some of the charges are already covered by your health insurance. Another thing you might need to consider is to have a long-term HMO. Your money grows with time.
Life insurance, on the other hand, is when you are gone. Your loved ones will receive an amount of money depending on what plan you availed. Some life insurance policies are partnered with investment.
The Seventh Cure: Increase Thy Ability To Earn
“To cultivate thy own powers, to study and become wiser, to become more skillful, to so act as to respect thyself.”
I really believe that learning is a never-ending process. You should invest in your self in order to enhance your knowledge and skills. Increase your financial literacy in order to be more cautious in managing your finances.
Being able to learn a lot of things can really help you in making more effective decisions especially when it comes to finances. When a business opportunity comes, you can grab it and take proper actions.
The more you learn, the more you can earn. This is true when it comes to investing. Successful people are avid readers – Warren Buffet, Mark Cuban, Bill Gates to name a few.
After knowing the seven remedies on how to have more money, it is now time to practice these basic principles step by step. Start acting now to in order to have more money.