How to Achieve Financial Stability: What Sets You Apart From the Rich

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Every middle-class person always has a dream of becoming rich. But most of us stayed middle class from our past generations and still, we are middle class. Poor people are becoming more poor and rich people are becoming richer but we middle-class people stay middle class for the rest of our life. Every middle class person has a dream of having a big home having one 4-wheeler. We also want to enjoy our life, and we also want to go on trips for refreshments but we cancel all of this plan just because we don't have sufficient money to do extraordinary things. Dreaming and having some goals and dreams are not bad. 

We, middle-class persons, are not very rich to buy luxurious things and not poor to crave food. We are in the middle and do you know when the problem starts? It's when you become comfortable in life. When we become comfortable we forget all the responsibilities and dreams, we start to adjust to whatever we have and think why to do hard work we have everything that we need. And it's a huge problem for most of the middle-class families. But what's the solution? Let me tell you some small tips and tricks that can make you gain knowledge on money management and you can improve your financial situation. 

How to Achieve Financial Stability

1. 50.30.20 rule:

Now what is this 50.30.20 rule? It's quite famous and every rich person uses it. It means spending 50% of your salary on your daily and basic needs like buying groceries, vegetables and rations. The next step is to spend 30% of your salary on your wants. Use this 30% to fulfill your wants like eating outside, going to parties, buying trendy clothes and accessories and picnics or trips/tours. The next step is to use the remaining 20% on savings. You should invest the 20% of your salary. It's the last but not the least perhaps it's the most important thing. My suggestion is to invest  20% of your salary immediately after getting your salary and use the remaining money in the 50.30 rule. If you want to save more money you can also use this 50.30.20 rule as the 50.25.25 rule. It means using 50% of your salary for your needs 25% for your wants and the remaining 25% you can invest it. I hope you understood whatever I tried to explain to you. If you have any confusion then you can ask about it in the comments. 

2. 2× rule: 

The second rule is about your expenses. So most of the middle class stays middle class because they keep showing off. They buy/purchase things that are not even important to them for example people have phones that are in good working condition but still they want to buy other new phones or sometimes they even buy iPhones. Just to show off that they can afford an iPhone but this is one of the dumbest things people do. 

So this rule tells us that if you want to buy something then you must the double money. Let me give you an example for your better understanding. If you want to buy a phone which is worth  $1000 then you must have $2000 to buy that. So, if you can't buy it's double then it's better not to buy that thing. This is a simple yet effective way to minimize your expenses.

3. 24 hours rule: 

This is also related to your expenses. This is also used to control your expenses on useless things. So whenever we see any sale online in which they say to get up to 50- 90% off then you will immediately click buy now or add to cart. Do you know why we do it, it's because we have a fear of losing. Sales are always for limited days or hours. So the next time when you see any sale and if you want to buy something then give yourself 24 HOURS to think about it. In those 24 hours, you will think about all the pros and cons of that object. And after 24 hours if you think you need that product and you should buy it, then buy it. If you realize that you are going to waste your money and it's not at all useful for you then don't buy that Product. This is a simple yet effective way to minimize your expenses and save your money. It's not useful only if there is a sale but it can be useful every time you want to buy something.

4. keep track of everything:

If I ask you a question about how much money you spent in the last week then what will be your answer? You may not even remember where and how much money you spent. These days people don't do it and they become poor and poor than compared to their parents And grandparents. So I just want to tell you to keep track of everything even if it's only $1 or $10 or $1000. The benefit of doing it is you can remember how much money you spent and how much money you wasted on useless things. This will prevent you from wasting your money you will know where and how much money you have spent and how much money you have left with you. This will control your expenses.

 

These are a few simple and easy tips to save money and improve your financial knowledge. I hope you will use all of the tips and become rich. I know that you can do it. 

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