Elon Musk: Tesla owner discusses his wealth and Warren Buffett
Make the most of your money by signing up to our newsletter for FREE now
We use your sign-up to provide content in ways you’ve consented to and to improve our understanding of you. This may include adverts from us and 3rd parties based on our understanding. You can unsubscribe at any time. More info
Money doesn’t buy happiness but it can make life a lot easier, so it’s only natural that people want to find out how the rich become successful. What exactly is their secret?
Experts like Warren Buffett and Dexter Caffey, founder of Caffey Investment Group and Smart Eye Technology, have spent years making their own mistakes and watching others.
Both recommend investing money and if there’s currently no spare money to invest, then they urge people to make sure they’ve looked closely at the following five areas to make savings where they can.
Reduce your monthly bills:
Most people could pay less on their monthly bills by swapping suppliers when it comes to gas, electric, broadband, car and home insurance.
Small households might benefit from having a water meter installed and money can be saved by being a bit more frugal around the house.
If monthly bills have been reduced to the max, people should consider going without some subscriptions or memberships and put the money towards investing instead.
Warren Buffett started investing early (Image: Getty)
Pay off all debt especially credit card balances:
Rich people might use credit cards to pay for big purchases like holidays but they don’t rack up credit card debt.
Many credit cards charge interest of 20percent plus APR, money that would be much better spent on getting rich and staying rich. People with credit card debt need to clear the outstanding balance so that there is money left over to invest.
National Insurance BOOST: How much is National Insurance? Planned NI increase in full [UPDATE]
The State Pension is worth £200,000 – 7 ways to make sure you get the maximum amount [ANALYSIS]
Capital gains tax warning: Savers told to act soon to avoid ‘significantly higher bill’ [WARNING]
Put some money aside in your current account:
Experts recommend having an emergency fund of between three and six months wages to cover any unexpected events.
Put this in an easy access account with the best interest rate so that it’s there for emergencies, but it’s also earning some interest.
This shouldn’t be invested, but kept safe so that if someone loses their job they can pay the mortgage or rent.
Who tops the rich list? (Image: Getty)
Sell unused items if they haven’t been touched for a year:
If you haven’t used something in a year it’s time to sell it, experts say.
Whether this is clothes, electronics or household items, the money you make from the sale could be better invested elsewhere.
Sites like Facebook Marketplace and Vinted don’t charge a sellers fee, meaning more profit in your pocket.
Further instructions and SEO advice can be found here
What is happening where you live? Find out by adding your postcode or visit InYourArea
Start a side hustle:
Websites like TaskRabbit and PeoplePerHour can help people generate extra money in the evenings and weekend.
Using a skill to earn an extra income to invest is a great idea and can be done in just a few hours a week.
Alternatively, it’s worth considering renting out an asset like a car, or a space like a driveway, to make extra money for investing.