How to get Rich and powerful in 2022 in 9 Strategic Ways)

 

Ideas on how to get richer and real examples

With the new year ahead, it’s time to make resolutions and make plans about your finances and how to achieve them.

One of the strategic way to learn this is through others who have accomplished similar goals.

Is it possible to get rich in a year? Let us learn how to get richer from the top Millionaires and advisers on how to manage finances in 2020.

Top ideas to manage your finances

#1 Invest in yourself

Tend to invest in yourself every year. Buy something fancy and expensive from a well-known fashion house. The moment you put on that item, you will always feel proud having spent such an amount on that item.

At the time you may feel confused as to why you didn’t maybe put that money back to business. But knowing you spent that money on yourself, it will make you feel like a queen. Then everyone will start believing in that strategy.

Whether it is about purchasing something for yourself, taking time to find something new, or going out for lunch and treating yourself, you will never regret having invested in yourself.

Examples of Ways to Invest in Yourself

Reading books or blogs

Every time you will hear a million being interviewed, the likelihood of hearing that reading books or blogs is the main thing they do is very high. They recommend reading as a way to attain success.

Reading books or blogs gives you a platform to learn new ideas while busting through any career slumps. You can learn and get to know new things you never thought they existed.

These days things have become even easier, you can listen to audiobooks while traveling, working out, or doing your chores.

Make it a habit to read often as you will be surprised how you will learn new ideas.

Here a list of top career books to read from various authors.

Become the Boss of Your Finances

Control your spending and put it under bay now. Debts are no fun. Only drugs you behind.

Until you have settled your debts, your money isn’t yours.

After settling the debts, you will be stress-free, relaxed, and have peace of mind.

Save for any situation, having saved for any unseen situation or emergency is an amazing thing to hold up to.

Planning well, saving on a tax-free bank account, or accepting to gradually do it will eventually become a reality, and in time you will have amassed a lot of savings. 

Invest in Your Future

Start saving now, and don’t wait to start saving after you retire.

Start thinking about how you want to live after retirement. Determine how your lifestyle will be much later.

Business-minded people are tech-savvy making it possible to access incredible materials and products to make finances better.

Invest in your future and don’t skimp it! One way to make it happen is through the use of Acorns. It’s an investment app that rounds up your spending and invests the balance.

These coins will sum up to a lot of money over the years.

Another way is through setting automatic withdrawals from your checking account to your investment account every month in a year.

Never Stop Learning

When you are not soo busy, take time to read and learn more.

Being idle may make you feel bored or fatigued.

Take a moment and think about the skill you have ever wanted to learn. What is that that has frustrated you and you want to make it better? What is it you are underutilizing?

Sign up to sites such as Pinterest and access amazing material to learn new strategies to what you want to be improved.

The materials are fee, hence a chance to learn something new.

#2 Put Money into work

Get that money in the bank and invest it back in business. Letting it sit on the bank will make it depreciate, but putting it into an investment will appreciate it and give you constant cash flow.

At times we think that investing money is all about building a house or on real estate. It is not a guarantee you will be getting money back or consistently.

However, there is another way to invest such as investing in yourself and learn a new skill. This will make your job better in the days to come.

Guaranteed ways to make your money work for you

Talk to someone with financial success history

It doesn’t matter what is your financial status. What will help is go look at someone with financial success history and ask questions.

In as much as there are financial advisers, it’s imperative to first consider someone with success history. Financial advisers mostly will give you wrong advice to make money out of you instead of helping.

Someone with success will break down every step and what they did to get to their position.

Plan ahead of the meeting. Know specifically what you want from that person. After meeting up, tell that person you admire them for their achievement and you would want to go buy them lunch or dinner while learning a few things.

You may be surprised how receptive this person might turn out to be. In just 30-60 minutes, you might have learned a lot from them.

Develop a Budget

This is something we have heard a million times, but the question is how many of us stick to it? Many of us are in the dark about our actual earning and what we spend. Developing a budget is one way to ensure we start taking control of our finances.

A budget is important since it directs you to know whether you are living above your limits and what to prioritize most. It also allows you to pay off debts and meet future financial goals.

Open a yielding personal account

It is important to save money on a high yielding bank account that will earn interest for the money saved. It is ideal to have an emergency account, but mostly it is hard to have one.

You need to save in an account that can earn an interest of 1% which is 100 times okay than saving in a regular checking account.

Mostly online-banking will offer this high-yielding interest as they don’t need to take care of physical branches. However, there is a restriction as to how the money is withdrawn.

Compare your options to see what is worthwhile.

Pay debts

We in one way or another owe debts. The good news is you don’t have to live with debts. And the sooner we are debts free, the faster we can be in control of our finances.

If you can pay your debts faster as that interest over the years sums up to a lot. It guarantees high returns in your bank account as long as we are debts free.

#3 Give More

The secret to living a good life is through giving out. In as much as there is the need to have financial security and comfort, nothing would make it better than giving out to others or having gratitude towards others.

Get a tendency of giving out as twice more. For instance, you may open two separate bank accounts. On one, you can be saving some amount to give out to the causes you care about.

You may give someone to fight hunger. Doing this might be doing a favor for your business.

If you have the resources, you got the power to touch others' lives. Extend some gratitude and you will realize who well you will live.

We are in a new decade where we can give more than we can spend.

Ways of giving

Writing checks

It is the most direct way of giving donations and charity. Even though an online donation is taking over, you can still write a check if you intend to help.

Online giving

Online giving is mostly among young people who love spending their time on the internet. It is their preferred mode of donation which is also known as crowdfunding.

An example of an organization that supports full online support includes Kiva. It offers microloans for growing entrepreneurs.

Donor-advised Funds

Donor funds also known as DFA’s has become popular and grown over the years. They are charitable accounts set to reduce expenses, they are easy to use and alternative to private funding.

Put your money into the account, and the DFA will manage it on your behalf. The research will be made on your behalf and you choose who to give charity to.

Family or private foundation

High net families create a foundation to offer charity. There are highly set rules guiding how charity out to be distributed. A specific amount is normally set and it should be given out each year.

If you have the capacity, it is easier to seek legal guidelines on how to set all objectives. It is also a way to ensure you meet all set aims, values, and interests.

#4 Spend only a Percentage of Your Income

According to Parkinson’s Law, work expands to fill the available time to complete it. It is an easy explanation as to why we spend what we earn or even go beyond the budget.

It could be great if we can set a resolution this year as it is still new and start spending like 20% of our income. Then save, give for charity, and invest. Even if our business grows, let us be disciplined and keep our spending constant.

However, it does not mean you live in scarcity but manage our spending as we continue enjoying life. It is recommendable we use Mint for our account and QuickBooks for tracking profits or losses, balance sheet, and our financial trends with the help of accountant team.

With this, it possible to review reports regularly for visibility, accountability, and transparency.

Budget priorities

Take note of the actual net income you take home after all the deductions.

Plan how to prioritize expenses and how you spend your money. All expenses have different magnitudes. And you need to focus first on the monthly necessities. These include rent, mortgages, food, transportation, and clothing.

Rent means spending on your limits, but not going out on the outrageous house or the most expensive condo in the city. Food also means buying the necessary groceries for home-made food.

Similarly, for transportation, it means budgeting on the necessary gas for your car, but not budgeting for the purchase of a luxurious vehicle. And finally, clothing means purchasing those necessary to cover a specific season.

If you have kids mostly, they are the ones in need of a change of closet since they are still growing.

For adults, you might have a full wardrobe and I don’t think it is necessary to budget for the same every month.

How can you Budget?

Donations should be assigned 5-10% of your earning if you are good at giving out.

Savings also need 10% of your total income. It is necessary for future and unseen eventualities.

It's also paramount for investments in preparation for retirement. You will not always work, hence it is required to start saving early enough.

Pay all of your debts so that you can save without any fear or stress. Debts mean the money you have at hand is not entirely yours.

You want also to separate the saving for different eventualities. There is money needed for vacations, new developments, renovations, and purchase of machines or new vehicles. You need a saving account for sinking funds.

Rent and mortgages need 20-25% of your actual income. Budget what won’t overwhelm you. For instance, if you have a mortgage to pay, consider renting a house that can fit your budget.

You want to avoid long-term mortgages like those that take 30-40 years. You will end up paying more than you can ever imagine. Stick to short-term loan settlement durations of like 5-10 years.

Utilities ought to take 5%. This is to cover the water, electricity, and gas bills.

Food comes in here, take 10-15% of your earnings for purchase of groceries. This depends on the lifestyle, living standard in your area, and the size of your family.

If you got a habit of making home-made food, you will save a lot more as compared to buying ready-made food from a restaurant.

It is also crucial to make food at home. This way you will have control of what you put on your food. It will much health for the entire family.

Transportation needs 10-15% of your income. The budget covers gas for your car, Uber fare, packing fee, and maintenance.

Ensure you pay off all the money needed after new car purchase. If you don’t pay any interest in your cars every month, you will save a lot. The money may go to saving account. You need this money for college fees or other emergencies.

It's sad to see many people spending too much on their car, but when it comes to necessities and emergencies, they have nothing in their pockets.

Finally, we come to clothing. Set 2-5% of your actual income. This depends on your family size, lifestyle, and your profession.

If you have growing kids, it's understandable to spend money on clothing. An amazing way to minimize your budget is to go for thrift stores and gey amazing cloaths for your kid's clothes.

Growing kids will always play and spoil their clothes within no time. For this reason, spend as little as you can for their clothes. It's not necessary to buy a pair of cloth at $40 while the same can be purchase at $3-$5.

After they surpass this stage, you can go to those expensive clothes.

Others such as healthcare, personal care, debts, and entertainment can be budgeted 30-35%.

Healthcare comes first. Occasionally you will need to visit the hospital. We also have hospital funds to pay for our insurances, that why a 5-10% need to go for health purposes.

Personal care is also paramount, set 5% depending on what you define to be a personal care and what you need for the same.

Entertainment are things such as paying for internet connections, Netflix subscription and more. You don’t require too much f it. Set 5% of your income.

Debts can get 10% to clear it within the shortest time. Clearing it all will give you peace of mind and save more.

#5 Be True to Yourself

Being true to yourself and money will follow. Connect your business goals with your personal goals. Quality of products and services matters.

It is common to see people responding to the quality and authenticity of products. They increasingly detect false promises and brand image.

When you are true to people, they will come to you. But if you try to false it to be likable, it won’t work. It is one of the powerful assets to have in a business.

It may not be good always, as you may lose an opportunity sometimes, but you will prove to be true and this always translates into more cash flow.

Own your personality and it will reflect in your business and improve your brand image. You will encourage your team and clients to bring their real personalities too into the table.

#6 Create a Financial Tracking System

Put a system in place to track your finances for the entire year. It requires an effort to establish and maintain a trend. But having a system in place, forecasting will become easier.

First, you will need to determine the income you will be bringing on the table for the whole 12 months. Then create a budget on how you plan to spend and save. Set up weekly or monthly checkpoints to review your expenses and saving. You will determine who the tracking is going as per set prediction.

Additionally, look at the opportunities, if the number s perform better or worse than you expected, it will be easier to set and manage with more accountability. At the end of the year, you will not be very far from the set mark.

All that is needed is effort, commitment, and the process will be achievable.

Ways to keep track of your finances

Monitor your cash flow

Understand your initial income, then your expenses, and savings. Centralize all of your money before it is distributed to different savings accounts. It may be hard to track all of your money because some may be going to your retirement account, emergency, collage, or medical account.

Make use of an app that will help centralize and track all of your money.

Mint is another app that displays all of your bills, function, and also alerts on the dashboard for you to see.

Set priorities

Plan what is necessary so that you don’t end up spending on unnecessary things you never meant to put your money into.

If you have no idea what to prioritize, imagine where you would want to be in 5 years to come. Would you want to be proud of something you have achieved? If yes, you need to get a clear objective as to why it's necessary to make sacrifices to achieve something in life.

Automate your finances

Everything financially will fall into the right track if you automate your cash flow. You don’t have to remember every month to pay anything you need. Centralize all of your bills and they will be automatically paid online.

Set a specific day when your cash transfer happens. For instance, you may set transfer from your checking account and then distributed to your other saving accounts. This will be an easier way to pay what is a priority.

Consider direct payroll deposits where you can ask your employer to distribute your payment into multiple accounts. You may have a savings account, emergency account, health account, or home account.

Plan with your employees to see how it can be done to ease things and set your priorities well.

Increase your saving rate as it is allowed by most banks. it can happen automatically using earlier discussed means. It can be a faster way of filling your retirement saving account to the maximum.

#7 Understand Essential Financial Metrics

As for our business, we ensure our year resolution is for our team to understand the set metrics. These metrics have a great impact on business finances and our target. For instance, you can use Quicken app that pulls your money together though tracking all of your transactions.

We instill an understanding of how these metrics relate to each other and the impact they pose to the business.

When the growth is fast and high, it's easy to look at the top-line sales. It is also crucial to understand the customer's retention rate, marketing spendings, conversation rates, and how they relate and work together.

As a business owner, execute things by sharing set plans with key stakeholders, get their inputs, and then ensure everyone on the team understand what it ought to be done to contribute to the overall business financial target.

#8 Prepare for the Four D’s

Prepare for the worst and the threats that come with the business operation. To be financially bulletproof beware of the debts, death, divorce, and bad decisions. They are the biggest threats in a business.

As time passes by, you will need to retire. So plan well and learn how to save for a rainy day. Set some finances aside for future investments, opportunities for business expansion, planned, and unplanned situations.

Make this a habit so that you don’t miss the money. It is possible to auto-deposit money for savings.

Live below your means always. The more you get successful, the more you need to be watchful of every penny you own.

Whenever you are not financially constrained, that the time you will find yourself being caught up with the feeling that comes with success, hence spends too much.

Watch for hidden fees that come from all corners such as that of financial advisors and the background spending.

#9 Invest In real Estate

Dig dipper and find ways to get higher returns by investing. Network and look for the right-minded people for the right deals. Getting additional even if few points adds up.

It might not seem a lot to get a 10%-15% additional, but in 20-30 years, the amount will be double, triple or even ten times the initial investment. Real estate investment is one way to get this.

For instance, those who have acquired a lot of wealth over time have made it possible through networking with right minded people such as the developer who can deliver as needed. It is also recommendable to leverage the size of the investment, and then create more opportunities for those who may want to invest back with you. You will get higher returns bottom line.

Conclusion

Setting principles and guidelines will help you spend rationally and save more. Set a system you will follow for the efficiency of the cash you have. The question as to how to get richer cis achievable is achievable if every penny goes to the right place based on set objectives.