83 STASHED IDEAS
In the world of finance, scalability refers to the ability of a company to sustain or better its performance in terms of profitability or efficiency when its sales volume increases.
It is usually a big challenge for any company to maintain its profitability or efficiency when the volume of sales increases. Similarly, capital markets must have the ability to maintain their performance levels when the volumes of trade carried out by traders and investors rise.
You don't need to earn a lot of money to become rich if you have healthy financial habits.
If you want to get wealthy, you need to consider three things:
The key to the habit of saving is to save a bigger percentage the more you earn. When you start, you may only be able to save 10% of your income, but it is a mistake to commit to the same amount if you earn more.
However, it's a losing game to only focus on saving money. Life is too short to only focus on every penny you can save.
It is natural to earn more over your lifetime. But a person can only earn more if they learn more. Further education enables an individual to provide more value.
Earning more is like a habit. Every year, we learn new skills and ways that will increase our earning potential. What matters is making progress, not the amount of money you make.
Consistent investing is essential. Investing as a habit will pay off in the long run.
It is most important to start with earning more, then saving more, then investing. People want to skip the first two steps and day-trade themselves to wealth, but most will only lose money by chasing quick money-making schemes. In the end, building wealth boils down to good habits.
Most good investing is about keeping your investment for the longest time possible. If you want to buy an investment just because its price went up, you probably don't know why it went up and will sell when it goes down.
Refrain from the need to own whatever goes up the most. Someone will always be richer than you, and that is okay.
Investors on the same field often play different games. Even investors who think they're playing the same say have widely different goals and risk tolerances.
Most investing debates reflect investors playing different games and missing each other in conversation. Investing power is knowing what game you're playing without being swayed by people playing different games.
While patience is vital in investing, you should not use it blindly in every situation. While some behaviours never change, the composition of the economy does.
A rare skill is to align your peak-wealth years with a generational collapse in interest rates, the Fed becoming comfortable with quantitative easing, and falling marginal tax rates.
Also, the ability to understand the historical context of what it was like in other times will help you appreciate what's possible.
It is therefore essential not to mind when your investments hurt you at times.
It's important to have an overview of your money and where it's being spent. It's possible to fit your expenses into these four categories:
When you break down your current spending even further, you will be able to keep yourself sustained with this method because it doesn't take away the fun.
There are three steps to creating a conscious spending plan.
Budgeting is about knowing that you're about to spend on something that matters to you. It shouldn't deprive you of having fun altogether.
Since you now have an idea where your money goes and how much goes out of your account, it's good if you set up an automated system because you won't have to worry about your checking account not having any money in it when you direly need it.
As long as it works for you, then you're on the right track.
Whether it may be through a spreadsheet, an app, or a small notebook, tracking your spending is a surefire way of making sure you stay within the parameters of your spending plan.
A person who has a conscious spending plan is all about having positive spending habits and not banning yourself from spending altogether.
If you've ever tried to put yourself on a budget and fail to stick to it every couple of months so, then you should definitely switch to something else. Traditional budgeting fails because they are unsustainable, focuses entirely on needs and ignores wants, and keeps you stuck on a cycle of looking backward.
Having some extra cash is helpful when the world falls apart. But emergency funds, while great in theory, are very difficult to put into practice. That is why so few people get around to saving one - most people have more urgent financial demands.
However, one should learn how to multitask with your money, moving between short- and long-term priorities.
Try to transfer your debt onto a zero-interest credit card (also known as a balance-transfer card). It will give you a limited time window where your debt won't accrue interest and allow you to get rid of your debt faster. But ensure you can pay it off within that window, otherwise the interest rate will skyrocket again.
Once the debt is gone, put that same amount of money toward your emergency fund instead.
Calculate the minimum amount you could survive on if things got tight, then multiply that amount by three. That is your starting goal for your emergency fund.
Eventually you'll want to save enough to live on for three to six months if you had to.
Some people are disciplined enough to manually set aside "leftover" money at the end of every month into a high-interest savings account. Others take the decision-making out of the equation and automate the entire process. Most banks have a feature that allows you to set up recurring transfers from your checking account into your savings account.
Saving up three to six months' worth of expenses could take years. That's fine. Just keep at it.
Write down your expenses from the past few months (look at your debit and credit card bills, your bank statements, etc.)
Next, see what is essential to support your basic needs and what you can cut if you had to.