When I was a child my mother said "buy land, they're not making it any more". This past year I know someone who sold thier farm for 13 million. They lived rather humbly (still do). You have to be in control of your money and aware of where it is and what it's doing at all times. The more you spend, the less you have. Whether you have a hundred dollars or a thousand you want to always have yourself fully vested. In other words don't have spare spending cash just sitting around. Keep it in investments at all times.

Begin by not spending. The people I know with the most money have it because they do not spend it. They have a sort of "I have money to buy it if I ever need to" attitude therefore they don't feel the urge to run right out and get it. Nice things don't make you money. If you have nice things and no money, you are still broke. If you like gourmet meals, making them at home could save you a good $20 to $50 dollars. If you did this once a week you could save as much as $2600 in a year. If you like hot dogs just as much as you like shrimp, eat a few more hot dogs. Drink more water and less pop. Save your slurpee money. Try not buying that new purse or those new sneakers just because they look good. Occasionaly walk to the park and the market rather than spending money on gas. This all ads up very quickly. Doing this for only 1 year can give you a good amount to begin with.

Compounding is the key to how money makes money. No matter how much profit you make you will always want to compound it meaning re-invest the profits. Invest in whatever you feel you would enjoy, land, homes, stocks, business, gold, basically anything that your funds will grow in. Have fun finding new things to invest in. Being diversified is a good way to protect against surprise dissapointments and losses. Don't ever let someone else tell you what to invest in. It is your money and no one looks out for your money better than you can.

Avoid using credit at all cost. By paying interest you are depriving yourself of riches your money could be earning. If there is something you really need, save for it in an interest bearing acount. This way will cost you less because you're buying it with interest earned rather than paying interest to buy it.

By playing it smart and watching out for your money you will see very quickly how money makes money.

Learn more about this author, Gloria Medeiros.
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