With world markets still on shaky ground and families on the ground still waiting to feel the effects of a recovering economy, the only individuals who seem to have cushy savings account to keep them warm at night are the millionaires. While it is too late for you to become a millionaire now if you aren’t one yet, it certainly won’t hurt for you to start following the penny pinching ways of the privileged few. Below are some of the habits that helped the moneyed earn and keep their wealth:
1. Put it in writing.
When it comes to the entrepreneurs who have made it big, it wasn’t just enough for them to say that they were going to save. While muttering it to yourself every day is a great way to put yourself in a frugal mode, the truth is that you need to have a plan which you can see, follow and use to evaluate your spending habits.
If you are thinking about investing, then you need to come up with an amount that you can funnel into your portfolio. Once you already have a figure in mind, it’s time for you to raise the same by finding out how much you can put aside in every month. Of course, coming up with that amount requires a knowledge of how much you actually spend in every month and what expenses you can afford to cut or cap.
2. Don’t stop saving.
Millionaires make their money work for them. In order for them to do that, they need to have a significant amount of disposable cash on their hands. When you invest your money, you also need to have the foresight to ensure that your investments aren’t disturbed in the case of emergencies and unexpected expenditures. Professionals who have careers with Nick Scali advised that the only way to do this is by saving. When you get a windfall such as a pay raise, make sure to save at least half of that additional amount every month.
3. Live frugally.
If you want to stop living pay check, then you need to stop living beyond your means and spend only what you have. Most millionaires believe in one mantra, and that is you can either have goods or you can have money but you might never have both. If you want to be a model for someone who wears luxury brands and don designer clothes, then you should let go of the fact of having money in the bank and a full investment portfolio.
4. Ask for professional advice.
Once you have the money to invest and you’ve already put the brakes on your spending so that you can continue to save with your new frugal lifestyle, it’s time for you to seek professional advice. Millionaires do not always have the first-hand knowledge needed to invest their money wisely. However, they are wise enough to seek professional help. If individuals who have money to lose do not have qualms over hiring people to help them, then you shouldn’t have any either.
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Kent Farell is an experienced registered financial planner and writer. His blog is full of useful tips to overcome bad debts. He also shares his insights on investing, financial management and lease financing.