Whether you want to get rich, or just want to stay rich, you need some ground rules. Here are 5 smart money habits of millionaires that can help you achieve that.
1. Automate Your Finances
Self-made millionaire David Bach claims that it’s “the one step that virtually guarantees that you won’t fail financially.”
If you put your monthly finances on autopilot, you won’t have to worry about late payments or creditors breathing down your neck. This way you can isolate your spending money from bills and savings, without sacrificing your mental health. After all, we all know how much stress worrying about money can give you.
So take time and set up any necessary transfers and payments on auto-pilot. You’ll feel better and safer, knowing everything is taken care of and exactly how much you can spend freely.
2. Make Educated Plans & Set Clear Goals
Did you know that 85% of self-made millionaires read two or more books every month? And we’re not talking fiction. Self-help books and autobiographies encourage self-improvement and teach thinking big.
In his book Secrets of the Millionaire Mind, T. Harv Eker writes that “The number one reason most people don’t get what they want is that they don’t know what they want.” Setting specific achievable goals is a priority.
Instead of focusing on what’s happening now, the rich are busy figuring out what their next success strategy is. Living a millionaire’s life means constantly expanding your mind.
3. Save Money
Opening a saving account may not sound like a big decision, but given time, it could be. Make a habit of putting away 10% of your paycheck each month and stick to it. Then gradually increase the number to 20%, then 30%, if you can.
A millionaire Kyle Taylor of The Penny Hoarder proposes a “50-30-20 percent rule,” where 50% of your money goes straight to the bank, 30% funds lifestyle, and 20% finances fun. It may be a challenge to follow that rule and cut down on expenses at first, but it’s bound to pay off.
4. Invest Some of Your Income
“Investing money is how you will get super rich,” a self-made millionaire Grant Cardone says. “The only reason to save money is to one day invest money.”
Rich people take calculated risks. Success is a trial-and-error process that requires time and dedication. Be it real estate, cryptocurrency, startup, or your own business, make sure you do your research before investing.
5. Live Modestly
Wealthy people spend less than they earn. It makes sense — a portion of the income goes into investments and savings account. But that’s not all.
Millionaires lead frugal lives. Instead of focusing on branded goods and designer clothes, they eat at home, drive mediocre cars, and don’t follow the opulent Kardashian lifestyle. If you meet someone super-rich, the chances are you won’t even know it.
So are you ready to change your daily routine to live a millionaire’s life? Or perhaps these 5 habits already sound familiar to you? If your answer to either question is “yes” — do yourself a favor and take a step further. Invest in your dream.
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