Don't let money control you. Take the reigns and charge your money to work for you!
Get out of the maze of earning and spending it all. People call it a cycle, but there is a flaw to that thought. Not all spenders are earners, so it's not quite a cycle. It is a maze when people get lost in their spending habits despite not earning nearly enough. Yes, credit cards have made this possible.
How can people find their way off this maze? Are there secret exits, shortcuts, or an actual end of the maze? Well, there are some ways to help you find your way out.
You've probably heard of passive income.
Many financial advisors and money enthusiasts preach about the pros of passive income. What is passive income? Simply put, it is the money you earn by not doing a lot of work. The true passive incomes are those you "earn in your sleep." Most of them take some time and energy to set up, and then you start earning from them without doing much. Examples of this kind of income are YouTube videos that bring in money from views after they've been set up for months and years prior. Another example is online courses you offer that people continue to purchase after they've been set up.
What about other streams of income?
The idea is to have more than one earning stream to cover your expenses and have enough to save. Some people prefer to work part-time and then do several side hustles. That is now made possible by owning small businesses and doing freelance work. These days, working a single job might not be enough to cover your expenses. Some people have good-paying salaried positions but have you heard the phrase, "the dreaded 9 to 5?" Most of these people complain about not having enough time to pursue other interests. I'm not one of those who think having a 9 to 5 job is dreadful if it pays well and doesn't require working on the weekends. I think a stable job helps for better budgeting and planning and other benefits. Imagine if the job offers good health insurance and retirement benefits; that would certainly be a plus.
My point is to earn money to make you more money to help you get out of the maze.
How can this be accomplished?
Save your passive income and other streams of income to acquire assets. The assumption here is that you've saved enough for your rainy day (emergency fund) and paid your debts. Now, grab the opportunity to earn money during crises. What do I mean? Have you wondered why during some crisis the wealthy invest, while the rest panic-sell? The rich see the opportunity to garner investments of companies that are doing well overall but have been affected by the crisis like others. They do not invest blindly; they have watched these companies and have been waiting for the opportunity to own a piece. They know that they'll make it big when the economy bounces back.
During an economic downturn, real estate is sold at lower prices because demand is usually low. That's when the wealthy acquire more of these assets because they have more bargaining power. They can decide to make it a rental property that would create opportunities to earn passive income or hold the property for a few years, sell it, and make capital gains when the economy stables. Economic downturns don't last forever and happen to create the best opportunities for some people to acquire wealth.
So, save up and invest wisely!
Disclaimer: Find a trusted financial advisor to answer your question and work with them to get out of debt and help you invest wisely.