Poor to Rich

How to go from poor to rich in a year - 2

How do you stop habits that keep you financially poor

Understand that this is a very very useful and high yield project you are undertaking and nothing worthwhile in this life comes easy. Now that we are on same page, use your time and energy for the following:

Step1- identify those habits.

This may take weeks or months because even your best friends might not be able to help you . They might not be observing you 24/7. Your own observations may be biased. Be brutal towards yourself. Analysis objectively. Create a expense chart.

Thus you know whats being spent.

You can check out people from different walks of life (your friends constitute a very little subset). And see how they spend thair earnings.

Now you ll have info about your own cash outflow as well as a patchy but adequate comparison chart with different ppl.

You can understand how much time this step is gonna take. Sometimes years.

Step2.

Learn the difference between wants and needs.

Sports shoes is a need. Nike or Reebok is a desire.

Mobile phone is a need. Iphone 7 is a desire.

Study a lot to understand what you can expend. Lots of other answers here on Quora about same.

Step3.

Fulfil your most important desires.

At the same time know where to cut corners without losing much but saving a packet.

This step is important because if you cut corners everywhere, you might lose out on ur personal progress and improvement. So if you are really good at tennis and beat most of the peers around your town AND you love it competetively, getting expensive kit isn't a luxury for you. Its need of the hour. Again if you are great but dont intend to pursue it further , a decent kit may suffice.

This step will make sure that you dont give away your present to build a better future or dont trade your youth for a comfortable old age.

Step4.

Make your savings count

This is the final step and the one that would make this exercise impactful. Without this, whatever you save will just be wasted. Use your savings to earn more.

How to do that again would require lots of studies AND hardwork. But this is the crux of this whole exercise. If you dont do this, you aren't utilizing your hardwork to fullest.

Epilogue:

While each of the step mentioned above needs lot of studying further( and lot of those things like not changing your car every 3 yrs are already mentioned in other answers) no strategy or habit will work unless you change your mindset.

So understand that having more money or spending more doesn't makes you any cooler. Specially when the margins are narrow. A person earning 100k an year wont really be too higher socially than a person making 300–400k a year.

But make few millions a year and game changes. Ditto for a person making ten times that. You may reach there but that would need many more different Quora answers. Until then , addressing the question at hand.

if you make 100k a year and spend like you earn only 70k , it won't be noticed by your peers unless you make them pay for your expenses which i assume you won't. Cheap people dont ever achieve anything.

So let your peers spend all of 100ks while you save 30k a year without changing much and you can sustain your strategy on saving without compromising.

This understanding is important because you cant keep saving on if you think you are being lesser than others.

Remember, the man who wins the race is man who thinks he can.

Lastly i dremind you again: nothing worthwhile in life comes easy. Work hard to achieve this. Its worth it.

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