Everyone has to make money, from the business tycoons to the lowly minimum wage earners. Each has its own share of hardships on thinking of ways to beat the odds. We can get some money ideas from the millionaires who have made a lot of income.
So, what can we learn from these few ‘fortunate people’ who were successful in managing to beat the odds? We have often read their inspiring stories on how they were able to reach and maintain financial success. Let’s read on for a few tips.
Pay in Cash. This boils down to cash flow. Millionaires are critical of the inflow against the outflows of their cash and focus on the expenditures. As they say, money should work for you rather than you working for it. You should pay for your daily essentials in cash. Else, if you cannot do it, then better forego your spending.
Expenses like groceries, clothing, and gas should have cash allotted for these right after receiving your paycheck. If the cash runs out, then you cannot spend any more on these until the next paycheck.
Work on your Financial Goal Backwards. Set a specific amount on how much you need to achieve, then work out your money in reverse. Set up an action plan to enable you to reach that goal. You need to calculate backward on how much you need to earn in order to hit your goal.
Brian Lim, millionaire and CEO of INTO THE AM, in an interview with Santander Bank suggests “figure out a specific financial freedom number as a goal, then calculate backward on how much you need to earn to make it hit that goal.”
Auto-Save from Your Paycheck. This goes to say that your savings are automatically deducted right after you receive your paycheck. Only you could decide on the amount to set aside. You would not notice how much your savings grow after a few months and even years. After a decade, you might consider investing in blue-chip stocks or a down payment for a house.
Ryan Stewman, a millionaire, has successfully made this savings trick. “When I was young it was $25 a week. Now it’s about $1000 per week. I never miss the money, and I can’t see it in the savings account without logging in ,” he told Santander Bank.
Max Out Your Retirement. Everyone is headed towards retirement. And who does not want to enjoy retirement years? We are too much engrossed to meet our pressing demands now that thinking to save for the future is often shelved. But talking about financial preparedness, that is, setting aside for retirement really matters.
Even if you cannot max out, it is highly recommended to set aside for retirement as much as you can and as early as you can. No matter how small the amount it is, start now. The younger you are, the better. With this, you are freeing yourself from the financial headache you might experience in your twilight years.
Final Thoughts: Saving money is easier than it seems. And you know what? Those laid-down tips are just as amazing. They are truly helpful no matter what your financial situation is. No millionaire is pushing you to invest in property or stock market. Instead, they are just as simple, straightforward budgeting tips to use as your baseline.