Manage your money and enjoy the sunset of your life in glory

To be successful in life, as well as to ensure financial freedom, requires a very simple rule, which is;  Spend less than you earn and invest the savings wisely

1. Save 10% of everything you earn – This means that for every €100 you earn, you spend only €90 and save €10.
2. Control what you spend your money on – In today’s society, no matter how much people earn, they seem to be able to spend it all, indeed even a little bit more, increasing their loans and getting further into debt…..All you really need to do is separate needs versus wants versus desires. When you desire to have a high net worth, you should spend your money on your needs and SOME of your wants. Why? Because you want your financial independence in the future, more than short term pleasures now…..So, which do you want more, short term gratification, by buying things you don’t need, or long term stability by saving. If you choose the latter and can follow through with that decision, it really is easy to become rich.
3. Save and invest your money – The 10% that you do save, you should invest and thus enable it to grow. Make your money work for you, while you work for the money that keeps you living. The money that works for you in the background will enable you to live without working in the future.
4. Do not lose your money – invest wisely – When selecting your investments, you should choose carefully. While it is important to get a good return, you should ensure that you do not risk your capital. The best policy is to spread your investments across a number of different areas. The old Irish saying, don’t put all your eggs in one basket, has more than a grain of truth
5. Own your own house – Every man needs to enjoy his own property as does his wife and family. It makes a lot of sense to put down a good-sized deposit and pay off the lender as quickly as possible….Owning your own home, while it may seem a stretch at first, will greatly reduce your cost of living, making available more of your earnings for those things that you gave up while saving and indeed to help with early retirement. It’s a fact that homeowners have a higher net worth than tenants on average and that there are good reasons why homeowners get rich and tenants retire with less.
6. Plan for retirement – You should ensure that you know how much you will need, in today’s money, to do what you wish to do, when you retire. Retirement is more expensive than most of us think it will be……A key part of this, of course, is figuring out your pension plans. It is probably advisable to go and speak with a financial advisor, who can help you plan this in a tax efficient manner……A person who saves a fixed amount each month between 20 and 30, and then invests that money in a risk adverse fund, will have the same lump sum at 60, as someone who invests the same monthly sum between the ages of 30 and 60!
7. Keep learning – Your career is your number one financial asset and managing it appropriately can make you millions throughout your working years. The best way to jump-start your career is to get a good (or additional) education. There is a big, big difference in starting salaries and earning power over a lifetime with a university degree versus not having one.

By following these steps and ensuring that you are spending less than you earn, it’s impossible not to become wealthy.