Everyone dreams of being a millionaire at some point or another in their lives. Imagine never having to worry about your debit card being declined, never needing to look at the price tag, never eating another pack of instant ramen noodles unless you genuinely want it.
In reality, however, self-made millionaires didn’t amass mountains of money by being profligate with it. They managed every cent on their ascent to financial success, and the smart ones continue to carefully control their checking accounts and investment portfolios. The good news is that they can teach you their best tips, tricks, hints, and hacks for managing your money. Read on to learn five of the best!
1. Operate on a Cash Basis
When you think of millionaires, you might picture someone plunking down a credit card to pay for an extravagant meal or an armload of haute couture. Most real-life millionaires, however, use cash almost exclusively for their day-to-day expenditures. Watching your inflow and outflow of cash like a hawk is one of the best ways to ensure you don’t overspend on quotidian expenses. In other words, don’t buy it if you can’t afford it right now.
You might think that your Christmas bonus or tax refund or even your next paycheck is a sure thing, but when it comes to your finances, you can never be too cautious. So borrowing money by using a credit card is like borrowing trouble. If you do get in over your head with debt, look into legit debt consolidation — and then resolve not to make those money mistakes again.
2. Save a Portion of Every Paycheck
Think about the last windfall you received: an extra Benjamin or two that wasn’t accounted for in your budget. Chances are you considered putting it towards your credit card balance — before deciding to treat yo’self. Similarly, it can be hard to set aside money to sock away in savings when there are so many other, more fun ways you could spend it. One trick is to have a certain amount of each paycheck automatically routed into your savings account.
That amount doesn’t have to be much; even $10 or $25 will do if you’re just starting out. By eliminating the middleman — that’s you! — you won’t even notice this amount’s absence from your checking.
3. Set Specific Goals
Don’t just say “I want to be rich.” Don’t just think “Someday I’ll be a millionaire. Even “My goal is to live in a big house and drive an expensive SUV” isn’t adequate. Instead, envision and strive for specific monetary goals.
Add a number to your dreams. A house worth $2.5 million in a specific neighborhood. An Escalade that costs $95K. Annual donations to charity totaling $7,500. Whatever your financial wishlist, you’ll be better able to manifest it if you are clear about exactly the wealth you want.
Be Smart About Managing Your Money
Naturally, these three tips for managing your money are just the tip of the proverbial iceberg. Nevertheless, they will serve you well as you advance in your career and start adding decimal points to that bank account.
Remember, too, that where attention goes, energy flows — so start thinking like a millionaire in order to more easily become a millionaire. One good way to do this? Browse our archive of articles about the finer things in life!
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