Make a budget- Fist and the foremost step is to preserve what
you have, cut the expenses. and for that you will need a budget. The
budget where you will keep all your earning and expenses on a chart.
Save
money_ the next step is to save or to cut off unnecessary expenses.
Once you are done making the flow chat of your budget then look at it
and see what unnecessary expenses are being made, where you can deduct
from.
Example ; if you have high electricity bill then start
paying attention to it, switch off the lights and other electric items
while going out of the house. Try using efficient sources of lights. Now
a days there are various options available in the market which consumes
very less energy and renders you with a much less electric bill.
Save
every penny that you can. At first it will look crazy but once you will
get adapted to the circumstances the results will be great.
Invest-
Now once you have the all the savings, Invest. There are various
investment deals and programs out there in market where you can invest
and earn some profit.
Do not invest everything at one place- The
most people invest all at once which is a really bad idea. While
investing the money, never invest all of it at one place. Have several
options and schemes, break down your money and invest. This is the best
way for safe earning. The main theory behind it is that while investing
the money in anything you will always have 50-50 chances of profit and
loss so if you would invest all your money in the single deal the loss
could be huge. But if you will spread the money in various deals, if one
goes into loss the other one would earn profit. The overall chances of
secure profit increases and the losses minimize.
Reinvest Your profit-
Here is the most important step what most people forgets. Once you have
earned a good deal of profit from investment then dont go out and spend
all of it on useless stuff. Reinvest it, find suitable deals and
reinvest and follow all the process from the starting again.
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