Hello and welcome to another exciting video from fancied facts. For most people in the
world, achieving wealth might be a challenging and a complicated process. But thankfully,
there are specific methods you can follow that can help you achieve long sustainable
wealth and financial security. But first, let’s understand what wealth
is from a financial perspective. According to Investopedia: Wealth can be determined
by taking the total market value of all physical and non-physical assets owned, then subtracting
all debts. And it could also mean the accumulation of scarce resources in one's possessions.
Specific people, organizations, and nations are wealthy when they can accumulate many
valuable resources or goods. It also means the gap between your expenses and your income.
Expenses should always be lower than your income, and the more significant that gap,
the wealthier you're considered to be. Now that we have given a brief definition
of wealth let’s talk about some of the practices to achieve it. Videos
1- save as much as possible from your earnings Saving money is probably an essential thing
to building, and achieve wealth and financial freedom. When you practice saving your earning,
it gives that peace of mind if something unexpected takes place. For instance, you might need
to change your job, move to another part of the country, or travel abroad for some time.
It also teaches you to direct yourself to a greater financial goal. More importantly,
it allows you to take the money you saved and use it as a down payment for an investment
project. Or if you decide to start your own business and be on your way for a brighter
stable financial future. Just don’t forget to consult an investment expert before making
major investment decisions. 2- Focus on your needs not your wants
One of many people’s pitfalls is that they fall for their desires and buy things they
don’t need when they go shopping. Suppose they calculate the stuff bought over a calendar
year accumulatively. They’ll realize the money they’ve spent on entirely unnecessary
things could’ve been saved for better, more valuable choices. And by the way, marketers
are very sneaky; they know what triggers us to pursue things we think will change our
lives or make us happy. To save yourself and your future wealth savings, beware of the
methods and tricks marketers use to get you to buy their products. Like special discounts
from price A – B, buy one get the other one free, telling you certain products will
change your life if you buy them! Save your money for something, much more important than
the stuff that will make you feel good in the short run only.
3- Create a budget for yourself and stick to it
One of the great ways to ensure you stay on the path of financial prosperity is creating
a budget, so you keep track of your hard-earned money. It was easier not to be tempted to
splurge on the latest smartphone or the newest TV on the market in the old days. They were
restricted by the funds available in their bank account. Today, however, credit cards
are a debt burden that could devastate your finances. Budgeting can ensure your spending
does not exceed the limit you set. And that also requires willpower for it to work. Your
budget can be daily, monthly, or biweekly. You put a certain amount of your money and
make sure you don’t go over the spending limit until you reach your financial goals.
There are many Apps to help you set up a budget and customize it according to your needs.
If you prefer, you can download a printable budget template and fill it out as you see
fit. 4- Cut down on expenses to a bare minimum
To reach the wealth status, you aspire for, you need to cut down on expenses to save more
money. This might include not dining out as often. You might need to seek value deals
that offer more for less of your funds. You may also save on gas in your vehicle by not
making non-essential trips or choosing a less costly method of transportation when possible.
Avoid buying pricy brand name items when an alternative is available and just as good
to acquire. You always have to fight the temptation for impulsive buying. Don't make an emotional
decision to purchase something. It's only to trick you into thinking it will alter your
life or make you a happier person when it's all just hype. You need to think about your
future goals that offer more considerable prize if you save your funds for the wealth
acquiring journey. 5- Investing your money in a profitable venture
Once you saved up enough money, it’s time to invest that money so it can grow to a double,
triple, or more overtime to increase the profit margin. And one of the best ways to invest
your money is to buy a company’s share, which allows you to own a piece of the company
and profit from your investment. You might want to diversify your investment to shell
yourself of possible incurred losses or periods of recession. Another great way to invest
is in real estate, buying your piece of land in a popular location that could become desirable
in the future. When your real estate rises in price, it increases your net worth. If
you decide to sell your house, the cash can be reinvested in other ventures that help
improve your wealth, possibly more. Just make sure to speak to a financial expert before
making any significant financial decisions. 6- Think positively and keep being patient
Being positive and patient will go a long way since you committed yourself to see a
path to wealth come to fruition. Many will not hold on for the arduous journey to wealth
and a prosperous future. Positive Thinking can tremendously help you, plus and it has
incredible benefits. For instance, it gives you better stress management and allows you
to cope during hard times, it lowers the rate of depression, you experience higher energy,
and improves your overall quality of life. This brings us to the end of this episode
of ‘Fancied Facts.’ You can check out our previous uploads appearing on the screen
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videos. Until next time take care and enjoy your day!