3 Steps you must follow tobe rich in 2021

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Becoming rich is on everybody’s wish list but it’s only a small fraction of the world’s population that gets to build a Forbes worthy fortune truth be told earning money Isn’t the easiest thing to do. But do you know what else is difficult? Striking the perfect balance between investing saving and spending money. most people either end up overspending or saving money with no intention of investing leading to financial stagnation. It’s for this reason that why I share with you the three-step formula. anyone can use to become rich. Let me share with you the story of my friend Mike. How he stumbled upon the three-step formula of becoming rich. But also how we leverage this formula to cultivate healthy. Financial habits that help them achieve financial freedom.

3 Steps you must follow to be rich in 2021

Steve is a senior financial analyst at a top level investment bank in Florida. At least this was his position before he ditched his nine-to-five job. A few months ago to become an independent analyst. Today Steve is at the helm of his career and his financial situation certainly deserves an award too. But when we rewind the tape about 10 years, So Steve’s story dances to a different tune.

About 10 years ago. Steve was fresh out of college and worked as an entry-level data analyst at an investment firm. His daily work life comprised of him dragging himself into work every morning, sticking his head inside a cubicle eight hours a day and punching in the number of hours. He spent munching on data entries. Steve’s job at the time wasn’t very fulfilling and neither was. His monthly take-home pay he was also working under a stressful and controlling boss which intensified his urge to attain financial stability and break free from his toxic work environment. Needless to say Steve hated his job and before he knew it he started developing bad habits to distract him from his bland work routine. When he wasn’t lounging at an eating joint. He played video games or watched VT shows at home. Steve preferred using his free time to do anything that would sway his mind off a job that made him feel trapped. In the back of his mind Steve knew that he wanted to escape the rat race. But he didn’t know how to go about it. Actually the only reason Steve kept it together was that he had bills to pay and a new job wasn’t so easy to come by. At the time Steve was earning about 400 a month and if we factor in his poor financial habits Steve was living paycheck to paycheck. Essentially he was perpetually broke and he often wondered why his financial life seemed to be taking a dip on top of that.

Saving & investment strategy:

Steve’s dream of buying a home seemed more elusive with every passing paycheck. He struggled to find an actionable saving and investment strategy that would help him fast track towards the future he wanted for himself. And what’s worse is that he had no one that could advise him now. One thing about Steve was that he was an over spender. Whenever he got his salary, Steve would first sort out his monthly spending and leave the remnants for a savings account. He had tried different money-saving rules but none of them seemed to sit well with him. Often he would end up with a starved savings account and on other occasions he was unable to resist the urge of withdrawing even the little he managed to save. He was entirely in the dark when it came to effective budgeting which left him with failed investment ventures. This trend went on until Steve made friends with Mike a colleague who happened to be his investment bank supervisor.

3 Steps you must follow to be rich in 2021

Mike was a middle-aged investment banking associate who had been a part of the bank for close to a decade. One thing stood out about mike. He had a charismatic nature that made him one of the most comfortable people to approach another aspect that Steve noticed was. Mike’s constant sense of fulfillment. Mike was one of the rare breeds of people that managed to get all their life boxes ticked by achieving the dreams they set out to achieve. According to Steve, Mike looked too happy for a hard-working 47 year old which made Steve curious. He was eager to discover the secret saw stomach’s life satisfaction. On Friday during lunch break Steve noticed Mike sitting alone and headed over to have a chit chat. Steve went over to Mike’s lunch table took a seat and sparked a random conversation about the workplace. Steve complained to Mike about how stuck his job made him feel. And how much he struggled to get through each workday. His main point of concern was that his financial situation wasn’t getting any better despite putting in the effort. He yearned for a day when he would save enough money to quit his job and start a successful business while traveling the world. After listening keenly to his endless rumbles Mike opened up to Steve and told him that, he had been in a similar position before learning a financial trick. Before coming across his trick Mike worked over 40 hours a week at a job. He equally hated. It was only after decoding a secret formula. That mike could break free from his previous life. So mike introduced Steve to the iss formula which he had been using for the past couple of years. Mike explained that leveraging the iss formula enabled him to set his priorities straight and progressively put his finances in order. Within a short time Mike was able to unravel the ins and outs of the iss formula. He explained that formula’s abbreviation stood for invest save and spend. That Steve had to handle his finances in that order.

According to Mike this was a practical approach for becoming rich and one that had helped set him in the right path for success. This formula prioritizes saving and investing making it vital for anyone interested in changing the financial trajectory for the better. It turns out those 20 minutes that Mike spent explaining to Steve about the iss formula were a game changer. According to Mike the first thing anyone should do after receiving their salary is to invest. This is because unlike saving where your money lies lifeless and loses value investing is a wise path for anyone who wants to grow his or her money. Mike recommended investment ventures such as a retirement fund real estate. Money market funds and s p 500 index funds with an investment in place. Mike went ahead to suggest that one can. Now save some money high interest savings accounts are particularly a brilliant option. If you don’t want your money lying idle with a pumped savings account to serve as an emergency fund. You can now spend the remaining portion of your income knowing that you’ve catered for your future.

Rule 50-30-20

After the short session Steve went home and made a plan his payday being three weeks away. Steve set his mind towards implementing the iss formula that same month. Just as mike had told him Steve sought a workable formula that would ensure. he saved and invested enough money without compromising his quality of life. He settled on the 50 20 budgeting rule technically. This rule advocated limiting one’s monthly expenses to 50 of their monthly salary. Hence channeling the other half towards saving and investing to break it down. Steve would now spend 50 percent of his income invest 30 percent and save the remaining 20 percent. This simple rule helped him draw a clear line between the amounts of money spent every month. And the amount of money he channeled towards his future nest egg. Just as the iss formula dictated Steve opened an investment account which would take up 30 percent of his monthly income. Mike had made him understand that the sooner. He started investing the faster he could begin to benefit from compound interest with this in mind. Steve also understood that saving was the cornerstone of any effective investment strategy. He was acutely aware that he had to save up enough capital to kick start. His investment plans which prompted him to open a high interest savings account to make the process easier. Steve decided to automate his savings he didn’t have to worry about backsliding or failing to remit money to his savings account this way he made arrangements such that thirty percent of his salary. Would be directed automatically to a sigma’s account even before his salary made his way to his pockets within a few months. Steve steadily built up a savings fund which he used to pay his debts and get his investment plans off. The ground automating his savings also helps Steve keep an eye on his spending habits. Because there’s no way he could spend money locked away in a savings account with time. Steve managed to buy into assets it could generate him more money. He started by investing a portion of his saved money in money market funds which earned him more interest. And dividends than a conventional savings account as he progressed on his new financial journey. Steve was able to diversify his investment ventures and maximize his investment returns. Steve also directed 20 of his monthly income towards setting up an emergency fund. Ten months later Steve had secured six months’ worth of living expenses that would come through for him on a financial rainy day with that checked off his list. Steve started to save for a vacation the good thing about the iss formula is that it set the required groundwork for Steve’s financial independence journey. He can now save for a vacation without feeling guilty or undeserving of a little treat. Luckily for Steve stumbling on the iss formula turned out to be one of the best things for his finances clearly.

Steve had walked away from Mike’s pep talk a changed man even years after his career progressed. Steve remained hell-bent on using the iss formula to positively influence his professional life. He stuck to the habit of investing saving and spending and as it turns out it paid off in the end many years.

Following the conversation he had stirred with Mike, Steve was a free man the investments. He had made were yielding noticeable fruits. He had saved close to a hundred thousand dollars which was an indication that. He could now hand in his resignation letter and chase’s dreams so a few months into hitting a savings target. Steve confidently handed in his resignation letter and walked away a free man even though. Steve made his way to a senior position at the bank. He hated the idea of answering to a boss. He had developed a passion for becoming a financial advisor but on the condition that. He became his own boss good for him this was possible because he decided to heed Mike’s financial advice. And sharpen his money habits thanks to the iss formula. Steve broke away from the same cycle of hating Mondays and looking forward to Fridays. he went ahead to venture as an independent financial advisor and simultaneously pursued his love for seeing the world. Credit

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