7 Ways To Be Economical Now So You’re Rich Later

Everybody wants to live a comfortable life one day and the best way to ensure that is to start early and have a good financial plan.

The goal is to be rich not look rich. This has come to be one of my favourite quotes. The recent visit by Mark Zuckerberg proved that you do not have to be flashy, just to show that you are rich. In fact, most rich people are very economical when it comes to spending.

Here is a list of ways to be economical now so that you can be rich later

1. Stop keeping up with others and live below your means.

Most of the time people want to live like their friends or family members. Just because your friend eats at expensive restaurants every day doesn’t mean you have to.

There is no point in trying to have a lifestyle like someone else’s; they can probably afford such luxuries so there is no point in trying to compete.

The best way to ensure you are wealthy later on in life is to live below your means now. For example, if you get a salary of 30K per month there is no need in renting a house worth 20K. Instead, live in a house worth 10K and below.

READ ALSO >>> How To Budget Like A Pro: 5 Very Simple Tips For Everyone

2. Eliminate unnecessary expenses.

How much money do you spend on lunch every day? Instead of spending over 100 shillings daily on lunch why not carry food from home. All you have to do is cook more than you can finish and pack the remainder for lunch.

Avoid spending money on transport when you can easily walk home every day. This is good for both your wallet and health.

Try as much as possible to eliminate any unnecessary spending and instead channel that money elsewhere.

3. Do It Yourself (DIY).

Do you really need to get someone to wash your clothes and clean your house? Assuming you live alone, washing your clothes on a daily basis will reduce the load overall and you won’t need the ‘mama fua’.

Instead of having to pay someone to wash your car (if you have one) why not do it yourself? The money you spend paying for these services could be used to invest.

READ ALSO >>> 7 Things You Should Do In Your 20s To Be Rich In Your 30s

4. Reduce and reuse

In order to cut down on the amount of money you spend paying for resources like electricity and water how about reducing your usage.

Cut your showers short; reduce the appliances you use in the house. Use energy saving appliances that will help cut down your bill and avoid wastage of water.

There is no need in throwing away old containers as long as they are in good condition. You can use these to store food items and other things instead of buying containers.

5. Sell the stuff you’re not using

How many things do you have in the house, but never use or ware? Thanks to platforms like OLX, PigiaMe and many more, you can sell all these items and get a few extra shillings.

The money you make out of the sale can go into your savings account or be used to invest.

6. Side hustle and save.

In the current economy, it is almost impossible to get rich through your salary alone. You will need some sort of supplement for what you are earning especially if your salary is not a lot to begin with.

This is where the side hustle comes in. Having a separate source of income is a great way to ensure you are wealthy later on in life because you will end up having more to save and invest.

It is important to save for your health expenses as well because you never know what will happen and you do not want to have to spend all your money on hospital bills.

Get into the habit of saving as much money as you can and invest that money so that it can multiply.

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7. Don’t falling for “get rich quick” schemes.

Kenyans have a tendency of falling for pyramid schemes. Everyone wants a shortcut to getting rich, sadly there is none, unless you were born rich.

For the rest of us you have to work to become wealthy. A lot of people have lost large sums of their money because of investing in get rich quick schemes.

That money could have been used to invest in something like land or starting a business which, no matter how slow would eventually start providing income.

READ ALSO >>> 5 Bad Financial Habits In Your 20s, That Will Make You Poor In Your 30s

It is important to remember that becoming rich is a process that requires one to be disciplined, determined and patient. You cannot expect a miracle, unless you win the lottery. Therefore, strive to be economical and save on money where you can.

The writer is a Digital Marketer at career Point Kenya. Email: michelle@www.careerpointkenya.co.ke