I am not a financial advisor and hold no formal qualifications in this area. Use this knowledge entirely at your own risk.Inform yourself well, you are acting on your own responsibility. This is not investment advice.
The money magnet
Create an extra bank account and transfer 10% of all your income, for example 10% of your salary, 10% of a chair you sold on ebay or 10% of money you got gifted. It doesnt’t matter if it is paper money or an income on your bank account. If you have debts, 5% are for your debt and 5% for your money magnet bank account. Never, never, never, never, never, never take money out of your money magnet. It will attract more money, improves your mindset and you will make fewer financial mistakes. When you feel the temptation to withdraw money from your Money Magnet account, for example, when you want to buy something nice, or you have run out of money, or because a purchase is coming up. Don’t do it! If you have money problems, try to make it go right. Sell something, help someone, if you have a business, close a deal. Maybe you can work overtime. Or get creative. On rare occasions, when you are about to touch the money magnet bank account, you can even borrow money, or ask people for money by explaining your situation as authentically as possible. But don’t lie. It’s additionally a pleasant feeling to see a whole chunk of money in that account at some point. You could(!) then think about what you could buy with it(!). It’s also nice to see the growth, as well as the amount. That will attract more money, opportunities and offers.
Reserves
Create an additional bank account for your reserves. You could have even more bank accounts. I recomment to use a bank where you can transfer money easily from account to account. Calculate, what is important for your situation (for example repair costs for your car every 2-3 years, a broken phone or unforseen things) If you do not have not enough money to save, reduce your costs at first. I recomment to save rather more than little. Lets assume a person earns 3000$ a month, than she/he could transfer for example 250$ to this bank account.
Invest
The definition of an investment is: x = x +y The definition of an expense is x = x – y
Most people think of an index fund or propertys when it comes to investments. Yes these things are investments indeed. But you should think out of the box. An activity like playing videos games can be an investment. In my case it recharges me and i have the energy to be productive and more happily. Playing video games 8 every day would be an liability in most cases. But if you are talented and want to become the best, even that could be an investment in rare cases.
Meeting good friends that lift your mood: Investment
Meeting people that are not good for you or waste your time and drain your energy: Expense
Buying a 400$ brand jacket: Expense
Buying a cheap perfume, that gives you the magic touch, when it comes to dating: Investment
Writing a guide for new employees, that saves your time: Guess it: Investment
Learning something with very good proven literature: Investment.
6 hour movie marathon: Expense
You must know for yourself what a good investment is, and what not.
Think thorough about that and what is possible in your special situation. Tip: What has the fastest and the greatest result? What risk am i willing to take? What are my Goals.
The most Important formula for Investments is: Invested amount * Interest Rate ^ Years/Months/Days/Period
For example: 5 Years, an interest rate of +10% per year and 1.000$ Capital
1000*1,1^5=1610$
If youre not good at math, there are calculators on the internet.
Inform yourself extensively with experts who really have good in mind. Investing, especially with high returns is not easy for beginners. There are many scams and mistakes you can make.
Tip: Buying a product and selling it higher has one of the highest interest rates possible.
Tip: There is a website called trustpilot where you can find reviews from real people about many companies and about anything.
What are you ready to invest?
If you want to achieve a high level of success, you have to invest a lot.
Not just money, but time, courage, money, diligence, knowledge and so on for very worthwhile goals. And that over a long period of time without seeing any results. Or you only see small results, but not the end goal. The journey is also the goal. You can then achieve things more easily at some point. This is an advantage. Many people want great things, but very few are willing to invest what it takes to achieve it. But it’s not as much as some people assume 😉 (especially if you work effectively)