what is wealth building action plan?

In the post basic of financial management I tried to tell you instead of fighting to make ends and means meet . Instead of trying to make more and more money, I told you to change your mindset. Think only 30% of my income will be expenditure. Then keep away 10% for charity. Then 30% for investment and 30% for savings. Now I am showing you a way to do it . This is wealth building action plan. This is how you can tread from rags to riches.

1. SPEND LESS

HOW TO SPEND LESS ?

1.REDUCE WASTAGE :

WHAT LEADS  TO WASTAGE?

Overstocking of food materials,vegetables, fruits etc leading to decay. Just buy for a week or ten days.

Turning your house to furniture mart, Toy store, Books corner, boutique etc. Buy just what you need. Not using or not donating is waste.

Payments avoidable

Wasting money on huge bills for eg. wasting on electricity by misusing electricity,   huge phone bills by phoning unnecessarily, Wasting Time by watching TV in excess.

Using private transport injudiciously. Depending on public transport saves time, money, overcrowding and traffic problems. Be   a prudent citizen.

Buying products as immediate solution to the problems. For eg. if there is a power cut one day or once or twice a week then buying inverter or generator without planning resulting in wastage.

lifestyle choices

Living on daily fashions lead to wastage. All are not celebrities to use and throw things purchased. Teenagers and young adults indulge in such activities leading to financial havoc.

Drinking , Smoking, Drugs are all considered vice. Any reason like partying small sip, big cup etc is only drain on finance and health.

careless attitude

Lastly buying from shops or offline where no discounts,return,EMI options are available while online shopping can be preferred  with several offers . Compare both and make a informed decision .

Remember everything wasted is like throwing  actual money into dustbin. Think of those who do not have enough and donate. At least think what would you do if you do not have money some day and avoid waste.

2.REDUCE SWAPPING OF CREDIT CARD

Have patience and use credit card only if it is the last straw to come out of a situation. For eg if you are caught up in settling some relatives health center bills or your own health bills and there is no other alternative before you. Sometimes God forbid we are caught up in such situation. settling of credit card should be priority.Nowadays youngsters use credit card like water. They are not worried about the heavy interest which each transaction incur. Credit cards are instruments which help you to come out of disastrous situations and also use in places where carrying of liquid money is not safe.

Solution

Pay off debt fast,double up on payments liquidating the asset, saving, etc. invest wisely,liquidate the asset only if it is required..

3. LIQUIDATE THE ASSETS ONLY IF REQUIRED.

Now if you have fallen into debt trap and have fixed deposits or some form of asset, then liquidating the deposit or asset is no option if you have no other source for settling your debt to  avoid huge interest payments.

SAVE MORE

What is saving?  Income – expenditure. Sometimes you have to reverse the equation like  Income-saving=expenditure. Then what to do for the extra  expenditure. Avoid it if it is possible, if not earn more.

INVEST WISELY

Merely saving is not enough. this money when invested properly multiplies. How to invest is another topic which i will discuss in length. But right now  spending frugally, Saving lavishly and investing wisely are the three pillars on which true wealth is built.

must read web hosting services web builder or c panel

Now I would ask you to do me a small favour.

First of all, can you share this post with your friends and help someone, sparing a minute or two from your busy schedule. Also,this feed back will help me continue to write the kind of articles which will help you in some way.

So,if you like it please let me know

If you have any questions please let me know through your comments below.

ideasforsure may get small commissions if you purchase anything from the recommended affiliate links in this article

Advertisements

This site uses Akismet to reduce spam. Learn how your comment data is processed.