We often look at friends with high monthly car payments and wonder how they do it on their salary. Many times these people can not afford it and have bought the car on whim and without much thought.

We would not buy furniture with money we don’t have so why do we do it with cars? It seems like a logical decision, we need transportation. But the truth is we don’t need a new car. Rather buy a second hand car and put that extra cash where you may need it.

1. Each month put away you’re the cost of your dream home including, mortgage, property taxes, insurance and maintenance. Stash it in a money-market account or equality funds. You’ll soon find out whether or not you can afford it.
2. Save for a down payment. You need as much money as you can for a down payment, which is usually 20 per cent of the cost of the home. Saving alone won’t help, be sure to invest the money in smart productive avenues.
3. Build up finds. Apart from a down payment, you will need to build up finds equal to at least 6 months EMI. Think of ways to cut back.
4. Build good credit. Credit cards charge a high amount of interest along with the principle payments. So make sure to pay your credit card bills on time. Check your loan eligibility before applying.

1. Carlos Slim Helu – This Mexican billionaire passes Bill Gates in being the richest man in the world. At 72 years of age this Telecom owner has a personal wealth of $69 billion.
2. Bill Gates – no surprise there. The 56 year old is not only famous for his wealth but first and foremost how he made it, by being the owner of Microsoft. This self-made billionaire is worth $61 billion.
3. Warren Buffet – from the U.S is 81 years old and the founder of Berkshire Hathaway. He is worth an impressive $ 44 billion.
4. Bernard Arnault – from France inherited LVMH and grew it to what it is today. The 63 year old man is worth $41 billion.
5. Donald Trump – Trump’s net worth at $788 million.

How did Bill Gates get this rich? Its simple, he created something that everyone uses almost every single day. He saw a need and he satisfied it. We have been brought up to believe that those who have become very rich must be extraordinary and have great intellects that let them see what the rest of us cant.

However, many have proposed that it was not Gates’ great genius which got him to where he is, but rather being in the right place at the right time. In 1980, IBM gave Microsoft and Gates the contract to develop the software for their first PC. Gates then bought an existing software program, QDOS, for $50,000 renamed it MS-DOS, and ended up collecting royalty every time a PC was sold.

1. Have an IPS – a written Investment Policy Statement is going to be your guide to investing. This will make sure you use your head instead of your heart when making investments.
2. Asser Allocation – this accounts for 90% of your portfolio volatility, ensuring you have the proper asset allocation for your risk tolerance.
3. Ignore the noise and know what you are investing in – ignore the predictions of analysts and economists. More likely than not their predictions are confusing and contradictory. Invest in something you know. If you don’t understand the investment, stay away from it.