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How To Live a Rich Life Without Lots of Money

How To Live a Rich Life Without Lots of Money
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“If you want to know what God thinks of money, just look at the people he gave it to.” ― Dorothy Parker

Do you regret not earning truckloads of money that could buy you the luxury life you’ve always wanted? I’ve seen people become depressed because of their poor finances. Many teenagers miss out early in life just because their parents cannot afford the latest gadgets their rich friends can afford.

However, money is not everything. Money might buy you things that make you feel happy, but happiness from within is what money can’t afford.

I have a lot of friends who have very little money to spare, yet live a rich life. Their lifestyle, their personal satisfaction, and their acceptance of themselves are what makes them seem rich. Non-monetary things can also make you happy – and believe me, they will be your biggest asset in the long run.

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Here are a few ways you can live a rich life without lots of money.

1. Learn to accept yourself

It can be hard for you to understand that money should be not a top priority. You can become rich in an instant and then lose it all the next day. You need to replace your personal desires with acceptance and learn to stay happy with what you have right now.

Seek inner peace and learn to control the uncontrollable in life. If you find yourself obsessing over things you want but don’t have, take a paper and write down that it’s okay to not have those things.

2. Become creative

You need to become creative to manage your personal finances and remain happy even if you don’t have much. If you are rich, you buy. If you are not rich, you create. Yes, not having much money can help you be creative.

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Learn to find happiness in small things. Draw a picture, take a photo, and invent something that keeps you at peace. Happiness is within you.

3. Stay authentic

You need to stay true to yourself in order to live a rich life. When you find inner peace and do things you love, you are reflecting your inner-self. There is no greater wealth than understanding what you are meant to do in life.

Regardless of your financial situation, try to believe in yourself so that you can stay happy, enjoy the small things in life, and keep yourself motivated.

4. Do what you love

Making tons of money is what most people might call being rich. However, if the person is not happy with their job, he probably considers himself the poorest person on earth.

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Floyd Mayweather’s net worth would not have been $700 million today had he not been a boxer. Similarly, Bill Gates would not have been the richest man on earth if there was no Microsoft. People who pursue what they love have always prospered more than people who work out of compulsion. The more you start doing what you love, the more money will continue to flow into your life. Even if it does not, you still get to stay happy as you grow rich within yourself.

5. Stay gentle

Gentleness was considered one of the greatest virtues by a philosopher named Confucius. When you are humble, you develop an ability to sense your environment and work accordingly.

For example, look at people like Buddha and Gandhi and compare how lived their lives. They were gentle, realized the value of their lives, and always stayed strong in their thoughts. Buddha left materialistic prosperity to live the life of monk and find the richness within himself. Gandhi belonged to a poor family, and despite leading one of the largest revolutions in the world, always stayed gentle.

Try to be soft and smile to make others smile. If you succeed in making other people happy, then you are truly rich.

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6. Become generous

Giving money is not the only act of kindness. In fact, I would not call it being generous at all. Generosity is what comes from within. When you give someone something from your heart you feel happy, and that feeling is what makes you feel rich. You also need to realize that sharing what you have, without even thinking of what amount you have, is what an act of kindness means.

Also, provide undivided attention to people who need help from you. Nothing is more generous than giving all you have and making others feel good.

7. Build relationships

The real wealth that you build and will be remembered through your relationships. People need to value their relationships more than anything else. Seek to make emotional connections with your family, your friends, your partner, and people that you meet regularly.

“Matters of the heart are important to me. All this materialism and all the money and wealth are things that you don’t take to the grave. One day you have it. The next day you don’t.” — Shari Arison

Featured photo credit: Flickr via flic.kr

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Grishma Giri

Grishma Giri is a passionate writer who shares about lifestyle tips on Lifehack.

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Last Updated on July 20, 2021

Financial Freedom is Not a Fantasy: 9 Secrets to Get You There

Financial Freedom is Not a Fantasy: 9 Secrets to Get You There
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Have you ever considered your life now, and how it would be if you had more time to spend with your family and less worries about money?

Nowadays, financial stress is one of the most troublesome weights in life. If you’ve ever encountered financial stress, you know the difficulty of not having enough income to pay your obligations or bills.

Many people say that money is not the ultimate goal of life. While that’s true, money certainly plays a very significant role. The meaning of financial freedom changes with the different phases of our life, but ultimately, it is something that many people strive for.

In this article, we’ll explain how to capture that financial freedom you’ve been looking for. Read on to learn the secrets to financial freedom.

Break Free of Your Finances

Financial freedom is about having a constant flow of cash from your assets to cover all your regular needs.

When you are not worried about your income, or living paycheck to paycheck, you gain a great sense of freedom. It’s the freedom to be obtain and do what you truly need to make your way through everyday life.

Gaining financial freedom, though, is a process of growth, making small improvements and gaining emotional strength.

Though it seems hard to believe, it is really very simple to get financial freedom.

To do so, you simply need to make sure that your assets exceed your liabilities. In other words, you’ll need to find the sweet-spot where your residuals meet or surpass your expenses. This is something that you can achieve with the proper plan.

While not every person will accomplish financial freedom, the potential for anyone to do so is certainly there. Anyone can achieve this success, regardless of their income level.

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Outlined below are 9 secrets that will help you in your goals of achieving financial freedom.

1. Stop Unnecessary Spending

We often spend money inwardly, instead of objectively.

For example, you may spend when you’re anxious, depressed, restless, exhausted, from fear of missing out, or to please others. This is a very unhealthy way to handle your finances.

To stop this habitual spending, log down all your spending over the course of a month.

Just as some people keep a food diary, keep an expense diary. Remember not to just write down how much and what you spent the money on, also include the circumstances of why you spent the money. Was it an impulse buy at the checkout line or was it something you planned to purchase?

This increased self-awareness could enable you to avoid triggering situations in the future when you are considering an impulse buy.

2. Plan a Monthly Budget

This is a great opportunity to get serious.

Take a seat with your spouse or partner and make a monthly budget based on your income, not your expenses. You are never again going to spend more cash then you have on hand.

Overspending is the thing that led you to more financial obligations. Make sure you decide every month what is coming in and what will be going out and stick to that budget… no matter what.

3. Cut-up Credit Cards

Perhaps you are the type of person who always pays your credit card balance in full before the end of your billing cycle, and enjoys the reward points you gain. If this is the case, then you’re already way ahead of the game.

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If not, you may want to consider ridding your life of the burden that credit cards bring.

Many cards have strategies set up so that if you make a certain number of late payments, they will raise your interest rate much higher. This can really add up in the long run and you won’t be doing your financial situation any favors. If you’re prone to late payments or have a large balance due on your cards, cut them up!

Without proper self control on credit card spending and payments, you are basically throwing your money away. To ensure that you have better control over your spending, use only cash or debit for all future purchases (and don’t forget to pay at least your minimum payment on your cut-up cards each month!).

4. Increase Savings

There is no doubt that for a comfortable retirement you must accumulate satisfactory savings throughout your working life.

It’s good practice to save up to 15% of your income.

Start with your workplace 401(k), if you have one. If not, a Roth IRA (if you are eligible) or a traditional IRA (if you are not eligible for the Roth) are the next logical steps.

Increase in longevity means you might be able to look forward to 25 to 30 years in retirement, or possibly even significantly more. Investing now in good retirement plans will ensure that you have a guaranteed a stable monthly income when the time comes to stop working. [1]

5. Invest Wisely

Consider investing in funds.

Specifically, you will gain higher returns if you invest in different types of mutual funds such as Debt funds, Equity funds and Hybrid funds with a proper balance, although it absolutely relies on your personal preferences and sense of risk taking.

To get the most of these benefits, make sure you are investing in a variety of assets. Another resource of investing in mutual funds is SIP (Systematic Investment Plan) where you invest some money every month in funds. SIP works by averaging the per unit price of the stock.

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Mutual fund investors are aware of the benefits of an SIP (Systematic Investment Plan). For one, it is the most secure way to invest in equity mutual plans so that wealth is created over a long period of time. This plan also helps you to gain a better sense of financial discipline, which will come in handy in all your financial endeavors.

6. Invest in Gold

There isn’t really a better way to invest in gold than to have the physical gold itself in your possession.

You can purchase gold coins and bars from mints as well as from coin dealers and other private sellers.

Another way to invest in gold is through ETFs (Exchange Traded Funds).

These are is similar to mutual funds but they are exclusively investments of gold. ETFs are great because they offer more liquidity; the ETF owns the actual physical gold, stores it, and retains the value of the shares. These shares can then be bought and sold in the stock market, and one big benefit is that the transaction costs of gold ETFs are much lower than the that of physical gold.

With its consistently-increasing demand, investment in gold can be very wise long-term investment to make.

7. Stash Emergency Funds

Whether it’s a cash gift or a work bonus, always try to save any extra money that comes your way rather than making unneeded purchases.

If you get paid every other week, you’ll get an “extra” paycheck (three rather than the usual two) twice a year. Either save those paychecks towards your emergency funds or utilize the money to pay down other obligations, such as loans, credit cards or other debts.

Make it hard to get your cash.

Put your savings in an alternate bank, maybe an online bank that forces you to delay for several business days before transferred money hits your regular bank account.

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8. Find Fabulous Mentors

Find a mentor, such as a friend or family member, who has exceptional control over their finances and pay attention to everything they do.

If you do not have any friends or family that are enjoying financial freedom, then find a mentor online! There are numerous blogs and guru websites featuring the advice of many people who have reached financial freedom, and they exist primarily to let you in on how to achieve it for yourself.

There are also plentiful forums available that share tips and tricks on how to best achieve financial freedom. Read as much as you can and start changing your habits for the better.

9. Be Extra Patient

Patience is the key of financial success.

Being patient can be quite tough, especially when you’re struggling with your finances, but having faith is worth it. You’ll continuously be on the right track if you are taking the proper steps above.

So don’t be discouraged, even if you are only saving a few dollars a month; it all adds up. Within just a few years you’ll look back proudly at your accomplishments and be glad that you had the patience to get there.

Financial Freedom for All

Anyone can achieve financial freedom, regardless of their financial circumstance.

Use the tips provided above to get yourself on the track to financial freedom and toss your monetary concerns out the window. If you wish to achieve a life with financial freedom for yourself and your family then you must adopt a disciplined approach towards your finances.

Following the simple secrets above is a great start to making your money work for you, so you can work less and live more!

Featured photo credit: rawpixel via unsplash.com

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Reference

[1] Hartford Gold Group: IRA Retirement Accounts

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