People handle their money in different ways. Some do it with more responsibility, and some do it with a bit more liberty than others.
Now, the Chinese people are best known for their frugal ways. And we can all learn a thing or two from them and how they handle their money. Here are a few of them:
Frugality is a way of life
Knowing how to live your life within your means is very important, and the Chinese have perfected it in their own way. You can do it too. All it takes is a little willpower and adjustment. Remember, it’s not about being a cheapskate. Instead, it’s all about being more economical with spending and more prudent with saving.
Save as much as you can
You’re probably heard about the 80-20 rule, where you’re supposed to store at least 20 per cent of your income to your savings. Now, the Chinese are known to take this up a notch by storing up to 60 per cent of their income to their savings.
Now, you may not be able to save that much money from your paycheck, but the takeaway here is that you should put away what you can when you can. No matter how little it is, it will build up before you know it.
Create multiple income streams
Relying on only one income is risky, as there is always a chance that this stream of income will suddenly dry up. That is why the Chinese still make sure that they have more than one source of income so they can stay afloat in case one stream dries up.
You can apply this to yourself. It can be as small as offering to walk your neighbours’ dogs for a fee every weekend, or maybe even an online freelance gig. If you can think up of other legal ways to give you extra income, go for it.
Only have smart debt
Smart debt refers to debt used for your benefit, like loans to get your business started, where the money you earned from the venture, will help pay for the loan and expand the business. Another excellent example of smart debt is a car lease that can provide you with a way to drive yourself to and from your company, among others.
Learn these ways and apply it to your everyday life to make sure you are saving more than you spend.
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