Earning More Money Will Not Make you Richer

First of all, let’s make it clear: earning more money will not make you richer. Managing your income and having more money left over at the and of the month will. 

Let’s explain this concept well. Many people often confuse increasing their profits with generating wealth. Partly it is true. However, they leave aside something significant. They need to save and invest. It does not matter how much you earn if you have not educated yourself financially. 

Remember, you are going to be wealthier when you:

Stop pretending and start taking action

Usually, the person who has the best car uses the latest phone and sports the best clothing brands is classified as rich. The poor want to appear as the middle class. The middle class wants to appear wealthy.

Even the rich want to appear to be millionaires. The millionaires don’t really care. They are already millionaires. 

So the advice is simple: Better stop pretending you are rich and start investing in your education and generating different income sources. 

Don’t mind that you have to wear the same clothes for another year or two.

Ignore negative people. They won’t add anything to your life.

It does not matter if you do not have the car of the year. You should start saving and investing.

Be patient. The road to success is always under construction, so don’t expect immediate results.

Divide your bank accounts

If you want to make your money work, divide it into different accounts with different percentages.

Basic Needs Account (55%)

In this account, you will allocate 55% of what you earn in a month to basic needs, such as food, fixed household expenses, health, transportation, among others.

Fun Account (10%)

This is the easiest to use because you should spend it on what makes you happy.

Long Term Savings Account (10%)

You use the money in this account for the future to make large purchases, such as security funds, repairs, or essential expenses that you are going to make in the future.

Donation Account (5%)

You always have to give something back in exchange, that’s why you allocate at least 5% of what you earn in a month to make donations that support organizations. You can use this account to buy gifts for a friend or family member, etc.

Education Account (10%)

Make sure you invest very well in your education, whether in courses or workshops, books, or various sports activities. You need to improve your skills and develop your capacities for your growth.

Financial Freedom Account (10%)

The most important account of all since this account will allow you to achieve financial freedom. Simply 10% of what you earn set aside solely and exclusively for investments will enable you to generate more passive income.

The list can go on and on. If you want to be a millionaire, then invest in yourself first. Understand what your passions and talents are and how they can improve your life and that of others.