Raising your account balance – this goal sometimes seems very far away. Some basic rules can provide guidance.
Anyone who receives a salary of 70,000 euros a year is one of the top earners in this country. And for the very rich, there is the so-called wealth tax. This means that everything with an annual income of 277,826 euros or more is taxed at three percentage points more than the top tax rate – namely 45 percent income tax.
Many would like to have more money. (Symbolic image) © Felix Schlikis/ Lobeca/Imago
But how do you get rich in the first place? The right job in a well-paid position and industry is often crucial. Others have inherited one or more properties. As different as the reasons for wealth can be, so are the ways in which one can achieve the goal of building wealth. Some tips from people who have gone from average earner to millionaire may help.
"Getting rich is difficult, but not impossible"
The portal Karrierebibel.de also has some basic advice. "Getting rich is difficult, but not impossible," it says. "Especially if you don't want to earn tens of millions right away, but think more realistically and frugally, the chances are not bad at all that you will earn and save enough money to fill your account." Here is a selection of the tips.
1. Be patient and think long-term
"No matter which path to more money you choose, they all take time, usually many years, and your assets will usually not make huge leaps, but develop slowly," the portal explains in general. Patience is therefore required, and not rash action.
2. Reduce your own costs
Putting money aside in these times is often hardly possible for people with low incomes in view of the increased prices in many areas of life. However, if you have the opportunity, you should try to raise your own account balance in the long term. Saving costs in everyday life starts with comparing prices in the supermarket and goes as far as cycling to work instead of driving, to name just a few examples. "Even small savings can quickly add up to many thousands of euros in the long run," it says on Karrierebibel.de. If you follow the 50-30-20 rule, it may also be much easier to manage your money.
3. Don't leave finances to chance
"If you want to get rich, you have to deal intensively with your financial situation," the portal also advises and recommends as a first step to keep a detailed budget book. Consumer advocates also advise this step when it comes to saving money, because with the help of such a budget book, you can get an overview of the daily inclusions and exceptions in a fairly simple way via the inclusions and exceptions. Tips on how to keep a budget book.
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But that alone is not enough. "Don't put your finances on the back burner, but take care of them immediately," the post continues. "If you don't start until your mid-40s, you're already a good 20 years short of what you could have used." Because one thing is clear: saving with a plan – that also means thinking about old age.
4. Invest your money
The money should not be put under the pillow, nor should it be parked in a savings account without significant interest. "You don't get rich by just putting money on the high side," Karrierebibel.de explains one of the basic rules when it comes to building wealth. A call money account with corresponding interest rates can be suitable in some cases. If you prefer to invest in shares with part of your money, you should inform yourself well beforehand. "Never put all your eggs in one basket," the article says, among other things, "but look for a broad, secure stock package." Broadly diversified ETFs are well suited.
5. Invest in your career
Last but not least, Karrierbibel.de also recommends working on your own professional career. "As you build your skills, you become a valuable employee and can become a sought-after expert in your field. The more you invest in yourself, the greater the chance of getting rich." But even when it comes to salary, there are often big differences depending on the industry and profession, over which you have no influence. The shortage of skilled workers is currently likely to play into the hands of at least many applicants. A salary negotiation or a change to another position can also pay off.