Generally turning a year older adds few extra pennies to your kitty. People gain knowledge, experience; they do evolve, turn wiser resulting in better input and eventually enhancing the output & hence they end up earning more. But is this always the case? No.
Let’s be grounded & do a reality check! Unforeseen events like accidents, layoffs, emergency medication etc can happen anytime, to anyone burning a big fat hole in their wallet. Hence it’s better to be prepped up to tackle such sudden incidents. And this preparation starts probably from the day we are born.
Below are a few exercises which definitely going to make you richer as you get older.
- Virtual money lessons
Probably the most difficult time to assess the value of money is during school days when neither do you earn nor do you have an idea of real world & story behind earning every penny. But those teen years are one of the most crucial times to start your journey to be a millionaire. So it is advisable to play famous virtual money games like Money Metropolis, Financial Football and likewise. This not only gives a fair idea of valuing money, but also the significance of investment, saving, collaboration, foresightedness and risk taking ability.
- Actively participating in some household activities
It’s time to apply the knowledge you gathered from the games you played to day to day life. There may be plenty of household activities every week or month; it is excellent to take up one or two of them & do them diligently. This may be paying telephone bill, electricity bill or buying groceries. One can learn to negotiate, handle money and deal with outsiders by such household works.
- Be a money mentor
If you are blessed with a sibling or anyone younger in family, be their money mentor. Teaching. them the value of money and the way to save and spend can indirectly aid you and reinforce your money mind-set.
- Investment is the key
Once you start earning on your own, investment is essential. Be it stock market, fixed deposit, real estate or anything non-depreciative! One is more prone to unnecessary splurging at this age. This can be detrimental in coming years and hence advisable to keep a check on monthly budget/cost and standard of living.
- Enhance your skill and profile
Enrichment through career can never go waste. Taking courses, higher studies, certifications from accredited institutes shall always add value and give you an edge. These make you professionally ready and business equipped. Moreover such investments are for long term purpose & hence immediate tangible outcomes may not be possible. But this is definitely a key to earn more in future days.
- Cutting down living expense and sticking to a monthly budget
This solely depends on the city you are dwelling. But after a period of time when you are settled somewhere, it’s time to focus on curtailing certain expenses. Buying products in bulk, canning excess food to consume later, reducing waste or anything unnecessary are helpful in curbing living expense.
These points cover what you may do till you’re 35-37. What happens after that? More investment, more savings and doing more of something you love. Remember, be a happy millionaire, not someone who might regret of doing certain things at the cost of own happiness.