Ever since I was a little child, I dreamed of being rich one day. I saw my parents struggle financially and I knew from the onset that I was not going to be that person living from hand to mouth. I wanted to have plenty of money and not stress about something such as finances.
Payday woes
So my mission began from my very first salary. At first, I ensured that I would save 20% of my salary every single month. I paid myself first, meaning that I set a debit order to go off on payday. This way I had no access to these funds and I had to manage my expenses with the balance of my income. This was a fail-safe way of ensuring that 20% got saved each month. Once I had enough I opened a Fixed Deposit Account and invested the money into this account, where the interest earned was much higher than a Savings Account and the capital was also guaranteed.
Financial Education
I didn't have a financial background so I did some reading on the subject and tried to keep abreast of new information all the time. I depended a lot on my friends from the finance field and sooner than later I learned about retirement annuities, life policies, long-term investments, and educational policies. I made sure I had all of these in place as soon as possible. I invested in educational policies as soon as my children were born. This was for me the basic foundation. I knew I would learn along the way and make other investments.
Information was not always readily available and I found that speaking to the wrong people could lead me astray. Fortunately, these days financial advice is at your fingertips.
Look for Alternate Streams of Income
I soon realized that I needed another stream of income and looked for options. I found a repossessed flat on a bank's website and put in an offer. This was a long and tedious process but in the end, everything fell into place. I put it up for rent and the rental income was now paying off the bond. There was a small amount that I had to pay out of pocket every month but in the larger scheme of things, this was a good investment and I could sell it for a profit.
Tracking your Expenditure
I documented my monthly expenses and this assisted me in tracking my spending activities. This system ensured that I stuck to the budget and did not give in to brief moments of satisfaction. I started developing a stronger ability to save.
Annual Bonus
We were lucky enough to earn annual bonuses. I ensured my entire bonus was saved.10 years into my job, the company did away with the year-end bonus. Those employees who depended on this money to spend on the year-end festivities were livid. I accepted that this was a decision by the company but knew that this will further slow down my goal of saving my first million.
The Budget
All the more reason for me to draw a stricter budget and stick to it. The budget helped me a lot and at each month's end, I would analyze if I stayed within my budget and any money left over would go straight into my investments.
Year after year, interest compounded and my wealth slowly started to take shape, very slowly might I add.
Annual Increase
The company that I worked for ensured that we would receive a salary increase annually. The excess amount earned would go straight into my investment account, so I would live on the same amount I did the previous year. It took a great amount of sacrifices to keep this going.
Live Frugally
In the interim, I lived a frugal life, saving up first before making any large purchases. I stayed out of debt and waited to save money for any household items, etc.
My family and I were well-clothed but we stayed away from brand-name clothes and anything that would cost us an arm and a leg just for a label. I also made other wise choices when it came to other accessories for ourselves or the house.
Through some issues at work, I decided to call it a day after 25 years of service. I am proud to say I could do that because I had my ducks in a row. I now have a healthy pension fund, a life policy, a penthouse apartment in a sought-after estate and a family home, paid-off cars, and enough to keep me going for a long time.
My point is anyone can become a financially successful person. The secret is not in the amount you earn but in how you manage your earnings.
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