1. Make your bag or wallet fat.

This does not mean filling it with receipts for all the items you have purchased with your credit card. That is, fill your bag with money. And the best way to do that is to spend less than you earn. This cure follows from the first gold law we examined last week: it aims to save 10% of your income. Minimum. Save more than that if you can. Save long-term, for your mortgage deposit or pension, depending on your life. If you need to save things for the short or medium term, such as vacations or cars, they should be added and separated by the 10% + you save for your long-term needs.

Your 10% may include your contributions to pensions, ISAs, premium bonds or any type of high interest / restricted access savings account. With compound interest rates, the stock market will become very thick over the next few months and years, even if interest rates remain low.

2. Control spending.

If you want to save at least 10% of your long-term income, you need to make sure that your current spending does not exceed 90% of your income. This means that wherever you are on the income scale, you will need to apply a little self-discipline when it comes to treating yourself and your loved ones.

To get started, keep credit cards for emergency use only and, if you use them, pay for them before you start earning interest. Likewise, avoid taking out loans unless you can justify the interest you will end up paying for this privilege. A car purchased with one of the most popular rental systems can be justified if it is essential to your work or business. But a holiday loan? The stay would be a better option. Learn to distinguish between desires and needs. You need to have a roof over your head and eat at the table; a month in the Maldives is a wish. Prove it when you’ve saved 10% of your income for a year or two and you can afford to fly to paradise without immersing yourself in those savings.

The secret to controlling spending is to build a budget and then stick to it. If you have Microsoft Excel, you can download a template that will help you keep track of your expenses for a week or a month. You can also find ready-made templates on the Internet or applications for your phone. Calculate how much you invest in mortgage, rent, business trips, etc. and set boundaries on items like eating out, entertainment, travel, and more. This will help you stay below 90% of your income.

3. Make your money multiply.

Look for consistent long-term returns, not a lottery win. What you need is a steady increase in your capital, your basic wealth, such as interest on an ISA or savings account, or, more risky, dividends on the shares you hold in well-run companies, including your employer. , if they have a shareholding regime for employees. If you’re not an expert in financial products and investment vehicles, look for someone who is. Don’t make any commitments until you talk to a professional financial advisor. Explain what your investment goals are and ask them to help you develop a plan to achieve them.

4. Protect yourself from loss.

The nightmarish nightmare of watching your dreams of wealth turn to dust as Bitcoin plummets or the guy you met in the pub the other night goes away with your life savings. One way to protect yourself from loss is to make it an unbreakable rule that doesn’t touch on the basic wealth you save and invest in the long run. Keep a steel ring around! If you are tempted to try your luck with Bitcoin or forex trading, just use money that you can afford to lose. This means that the money you have left after you have saved 10%, pay the bills and fill your belly. Money that you might otherwise spend overnight can be delivered to online bookmakers, if you can budget it; see the second care above. Never use a credit card or a loan for widespread gambling, gambling, or high-risk investments. But before investing or betting high risk, make sure you have thoroughly researched the field and understand what you are doing. If online poker is your dream, first practice with your teammates to get the match.

5. Make your home a profitable investment.

Owning your own home (and ideally some buy for rent properties) has become an obsession for the last thirty or forty years. Given the way property prices have risen during this time, it makes perfect sense to climb the property ladder as soon as possible, especially when house prices rise at a much faster rate than income.

However, keep in mind that at some point the bubble may burst. Yes, people have been saying it for years and it hasn’t happened yet. But it is increasingly likely that the authorities will take steps to let some air out of the real estate market. Possible measures include revaluation of property tax brackets and punitive purchase taxes to leave vacant properties and properties vacant. A significant increase in housing construction is unlikely to have a major impact on house prices, but, combined with possible tax changes, we could see prices reaching a plateau and staying there for a while.

With all of this in mind, the best approach is to find an affordable home or apartment in an area where you want to live in the foreseeable future, taking into account aspects such as local amenities, schools, and the trip to work. Also consider the benefits of paying a mortgage and gradually acquiring full ownership (foral apartments and flats) of your home for 25 or 30 years, compared to an owner’s obligation to increase rent or evict. lo a month in advance. and who will still be the owner of the roof of the head, in spite of all the thousands of pounds you have put in your pocket.

If you can’t afford to shop directly in the area where you want to live or work, consider options like shared ownership and self-construction. Check what schemes are available in the area where you want to live.

If you already have your home, you can use it to generate extra income by hosting accommodation. If you live in a major city, contractors are a good source of accommodation – professional people working on a local project for you who need a place to stay for a few months and don’t want to use hotels. They will often come home on the weekend so you have the place to yourself. Another option is to host exchange students. They will usually arrive in a week or two. He provides them with a bed, breakfast, takeaway lunch and dinner, and they are paid to do so. Another option is to use your home during the holidays while you are on vacation. It works especially well if you live in an important city or a historic city.

Even if you rent, take an accommodation (if the landlord will allow it) or run a home business (see below). You can still turn your home into a source of extra income, even if you don’t own it.

Two more things to keep in mind. First, home and content insurance. Make sure you have adequate coverage for the worst that can happen: fire, flood, theft. Second, if you have a mortgage, try to insure it against unemployment and illness. Check and make sure all the policies you make are appropriate for the purpose and will be paid if the worst happens.

6. Develop future income.

Who wouldn’t want to wake up in the morning knowing that no matter what happens, they are assured a steady income for eternity? Well, you can get it through your long-term savings, 10% more than you put in month to month, year after year.

When you talk to your financial advisor (as it should!) About your savings and investment goals, the first two topics you should focus on are a pension for you (and your partner, if you have one) and provide your family when it is no longer there, that is, life insurance. Your financial advisor should also direct you to other investments that may generate additional income for you and your family, such as ISAs, unit trusts, and government bonds.

Your goal is to ensure a proper income for a long old age. Remember, people live longer, but it’s not always healthier. It’s not nice, I know, but think of the worst that can happen to you (less than an early death). You or your partner are chronically ill or disabled and need long-term care. How will you finance this? If you sell your home, what will you leave to your children. This is the kind of question you should talk to a financial advisor about. You need a pension, in addition to other income streams, that you pay for all your needs perhaps for thirty or forty years after you stop working. Make a plan, implement it, and then enjoy life.

7. Increase your ability to win.

There is no more work for life. Today, even professional occupations, such as lawyer, accountant, and insurer, are threatened by automation and scarcity. Therefore, it makes sense to develop additional skills that you can use if you find yourself unemployed.

If you think you run the risk of being replaced by a robot, you should look very carefully at the “test of the future” of your career. Think of jobs that are unlikely to be automated or wasted in the future. They are usually those that involve face-to-face contact, for example, complementary therapies, hairdressing technician, personal trainer, personal trainer, advisor. In addition, jobs where the local presence is essential: electrician, plumber, locksmith, builder.

Of course, many of these jobs are relatively low paid and are in highly competitive sectors. That means you have to find a single point of sale – something you do that no one else does, or that no one does as well as you do. Focus on what really interests you (or better yet, makes you passionate) and know that you can be brilliant. Be realistic about the potential revenue, competition, and time and energy needed to make them work. Unless you have experience in the chosen field, you will have to devote a lot of time and maybe money to acquiring the necessary skills and certifications. You will also need to decide how you will operate: sole operator, corporation, franchise? Take advice before committing to anything.

A popular option to generate additional revenue is to sell online. Even if you are working full time and satisfied with your income, you can try it in your spare time and get an idea of ​​what it entails. A regular disassembly will reveal all sorts of things you can sell: clothes, DVDs, cell phones, and unwanted gifts. If you enjoy selling online, you could grow a successful business without risking your principal.