Of course the basic truth is that people who become wealthy spend less than they earn. This is easier said than done.
My favorite is making your investments via offshore companies in tax havens like Seychelles, Mauritius, Ras Al Khaimah or Dubai. The tax charged in the tax haven is generally zero. But more of that later.
Here are some of the conventional ways to save money.
1. Clear your credit card debt
One of the golden rules of financial planning is to clear your most expensive debts first, in other words your credit cards. OK, credit cards offer a convenient way to pay for goods and services but if you can’t clear the balance every month, consider a low-cost loan as an alternative. Generally the interest cost on unpaid balances is at least 2% per month!
2. Check your statements, receipts - everything
Businesses have increasingly become about greed, not about fulfilling a customer’s needs. Bonuses are paid on sales and stock prices, and the employees are focused on just that, more than on customer satisfaction. One day the company implodes and you find out about the various creative accounting techniques used. So check all your receipts.
Everyones at it and always has been; sometimes innocently, often not. Always check your bank and loyalty card statements, restaurant and phone bills and till receipts. It’s a chore to complain, and can be embarrassing if you are wrong, but those extras you never received at the restaurant, the bank charges and the worse, the internet dialing scam, could be costing you a fortune - and if you don’t check you wont know.
3. The essence is simple; if you can get the same thing by paying less; then do so.
It’s not only about car insurance and credit cards. The different ways to save money stretches to cutting childcare costs, cheaper contact lenses or checking your council tax bill; it’s what this whole site is dedicated to.
This is my first post, but it will have well over 20 pages on saving wealth. As in everything else, the Pareto Principle 80:20 rule applies here too. Eighty percent of your savings will come from 20% of the actions you will take. This is where you need to remember the offshore company in the various tax havens.
You can pay lower tax rates and have your savings in one step. Also, it is inexpensive - usually under US$ 3000.
Ramapati Singhania specializes in creating and managing web businesses. His
latest website on incorporation offshore saves wealth, focuses on
helping you to incorporate offshore companies in Seychelles, Mauritius, BVI, and Dubai and Ras Al Khaimah in the United Arab Emirates.