Want to be a millionaire? It’s not all about yacht parties and gold watches – they usually got there with sound finance habits and watching their wallets like a HAWK. Check out these money management techniques millionaires swear by.
#1: Put your money to work.
If your money is sitting in a checking account, or in cash form somewhere “safe,” it’s losing value. Make sure your extra money is at the very least in a savings account, or better yet invested (even in a safer investment like bonds).
#2: Budget your entire paycheck.
Surely you have a budget. But it’s crucial to budget EVERY dollar that comes in, not just your bills! Budget your entertainment spending, household goods, shopping, savings, emergency/unexpected expenses – every dollar. And stick to it!
#3: Know your interest rates.
A low-interest personal loan can be used to pay off a high-interest credit card. Student loan interest rates are low – if it leads to a great career, it could be worth it. And your car loan’s interest rate is MUCH more important long-term than the monthly payment!
#4: Make a financial plan.
You’re not going to win the lottery. So what’s your plan for building wealth? It won’t just happen on its own. If you have some money, get a financial planner to figure out how to make that money grow.
If not, figure out what will get you ahead – a career change? Going back to school? Starting a business? Collaborating with your community on a real estate investment? You can do it – but you have to start someday. Why not today?