When you think of what differs between the rich and the poor, what comes to mind? The size of their house, the car they drive and of course how much money they have in the bank. These are all logical answers however, what truly separates these groups of people is their knowledge on how to best manage their money and in this article, I will share with you the 7 money hacks that only 1% of people know so you can start to manage your money more effectively!
Ask the average person and they will tell you that managing their finances is a chore that they would rather do without and sadly some people forgo managing their money altogether but that’s a topic for another day. The reality is that most people drudge through the management of their finances, from tracking their savings to remembering to pay their electrical bill. While you would assume the rich spend much more time managing their money than an average individual, the truth is that in most cases they spend less allowing them to focus on activities that will only further increase their wealth. So in what ways are the rich making money management a simple task? Here are 7 things that will help organize your finances and put you in the best financial position of your life:
Number 1: Open Up The Right Accounts
The first step in building an automated financial management process is opening the right accounts. Whereas most people operate with a single checking and savings account, this strategy isn’t ideal if you want to make managing your money as simple as possible. You see, if you only have one or two accounts open you will have to start moving money around every month and this can be a hassle. Instead, you will want to open up multiple accounts that will each have their own designated purpose.
So what accounts should you open? Besides the standard checking and savings accounts, you will want to open an emergency fund account, and an investing account so that all your financial categories are covered.
Number 2: Set Up Automated Deductions
In the United States, 82% of workers are paid via direct deposit and if you make up part of this majority then you are definitely able to leverage the power of automated deductions. To be…