Have you ever wondered how the richest got to where they are? What did they do to bring in the money, while the rest of us are struggling with rent and credit card debt?
Today, we’re shining a light on the savvy financiers of the world, and learning their habits. What do they do every single day that helps them reach their money goals?
What keeps them out of debt, and helps them manage their finances? We spoke to some successful millionaires to find out how they look after their money.
1. They set a budget
Even the richest business people, with the highest incomes, set themselves a strict budget. Despite appearances, almost all self-made millionaires got there slowly, with a strict plan.
Millionaires don’t just appear overnight. They have grown up with a strong budget, and kept that mindset as the money increased. They measure their income, and they keep a sharp eye on their outgoings.
Most importantly, they save first. They put money aside first, and spend the rest. Not the other way around.
2. They pay off their debts
Smart financiers know that debts are a vicious circle. Debts create more debt through interest rates and late payments. It’s a difficult hole to dig yourself out of.
That’s why the smartest money managers avoid it at all costs. If they put something on their credit card, they pay it off the next month. They carefully consider the options before taking out a loan.
If they do find themselves in debt, they make it a priority to get themselves out. Debt will stifle any future financial plans you have, and constrict you.
3. They cut back on costs
You’ll be surprised to learn that lots of millionaires are still driving around in small, modest cars. Sure, millionaires will treat themselves once in awhile, but most are quite strict about their outgoings.
They cut back on essential costs, and keep their overheads to a minimum. The less they spend on frivolous purchases, the more they can save to invest.
Good financiers are smart about their bills and payments. They avoid impulse purchases, and keep track of every penny. It’s an attitude you can adopt quite easily.
4. They invest
Unfortunately, you’re never going to be a millionaire by keeping money in a savings account. The interest rates simply aren’t high enough. In fact, interest rates are currently close to zero on most accounts.
With that in mind, you’ve got to make your money work harder! There are all sorts of investment solutions from shares to currency exchange. We happen to think that mutual bonds are the best investment for first-timers. They’re risk-free and high return.
5. They set money goals
Last of all, they set themselves realistic money goals to achieve. To make good money, you have to make it a priority, and actively work towards it.
How much do you want to set aside for your retirement? How much do you need for the kids’ college fund? Set these goals, and actively work towards them.
Now you know the big money making secrets! Use them to your advantage, and integrate them into your life.