We all talk about desiring to become wealthy and financially free, but what does it take in order to achieve this goal?
Many millionaires avoid excess debts because they realize that these debts keep them from saving and investing in order to build wealth. Millionaires who have credit cards won't let their cards accrue unnecessary interest. They strive to pay them off in full on time each month. If you want the best loans or credit cards, it is best to get your credit score to 720 or higher to obtain excellent rates. Here are more millionaire money moves you can make to grow wealth.
1. Start an Emergency Fund for a Millionaire Money Move.
A millionaire money move is to know where your income goes every month, and the best way to do this is to use a budget. Start by writing down your weekly or bi-weekly take-home pay amount. Then you will write down all of your necessary fixed expenses such as rent, utilities, groceries, insurance, and clothing. From there, write down any miscellaneous expenses you have. If your overall expenses exceed your income, cut out unnecessary expenses.
2. Invest, Invest, and Invest Some More.
You won't grow your wealth simply by putting your money in a savings account. This is because the interest rates on most savings accounts are dismal, and you would be better off taking this money and putting it to work in an investment account. If you start investing in your mid-teens or early 20s, this could lead to substantial wealth by the time you enter retirement. Read books by successful investors, such as The Intelligent Investor by Benjamin Graham and One Up on Wall Street by Peter Lynch. Read good articles on investing. Start by opening a brokerage account with companies such as Fidelity or Vanguard. Then add money to the account so you can purchase stocks and exchange-traded funds.
3. Don't Rely on One Stream of Income.
Most millionaires don't just have one stream of income. If you want to accelerate your wealth building, it's vital that you have multiple streams of income. In addition to your regular job, look for ways to earn passive income. Maybe you can start an online business and use part of your profits to increase your investments. Another idea would be to get a second part-time job to help you boost your emergency fund.
4. Improve Your Time Management Skills.
Wealthy people don't waste time, and it's paramount that you learn good time management skills. If you need to work on your blog this weekend, block out a few hours for this task. Set a timer and turn off all distractions so that you can focus on what needs to be done. If you have several meetings on Monday morning, prepare your outfits and important documents on Sunday.
5. An Easy Millionaire Money Move: Budget and Track Your Spending.
A millionaire money move is to know where your income goes every month, and the best way to do this is to use a budget. Start by writing down your weekly or bi-weekly take-home pay amount. Then you will write down all of your necessary fixed expenses such as rent, utilities, groceries, insurance, and clothing. From there, write down any miscellaneous expenses you have. If your overall expenses exceed your income, cut out unnecessary expenses.
6. Embrace Frugality.
Being frugal can help you build wealth in amazing ways. Cook more meals at home instead of ordering from food delivery services. Purchase your clothing and gifts for loved ones mainly on sale. Purchase a used car with cash instead of paying car notes each month. Learn DIY skills to reduce your need to hire professionals.
7. Be Generous With Your Money.
Don't view your wealth as just something that will only benefit you. Think about the many people you can help with your wealth. Maybe you can donate funds to local charities that support causes you're passionate about. Or if you have kids, why not use some of your money to open 529 college savings plans for them?
8. Have Goals for Your Money
Many millionaires have goals for how they want to use their money. You should set both short-term and long-term goals, and remember them when you get discouraged during the wealth-building process. Your short-term goals might include paying down your credit card debt or being more organized with your financial documents. Your long-term goals might be to retire early, purchase a smaller home, and travel more with friends.
9. Pay Yourself First.
When payday comes, the first thing you should do is pay yourself first as a millionaire money move. You want to allocate part of your money in your savings and your investment account. This is important because if you pay bills and other expenses first, you won't have much leftover to maximize your savings and investments. When you pay yourself first, you accelerate the wealth-building process.
10. An Obvious Millionaire Money Move: Work on Building Your Credit.
Having good or even excellent credit is helpful in building wealth. Some credit cards are associated with investment companies, and they reward you by allowing you to deposit your cash rewards into your investment account. This is a good example of how having a credit card can make money for you. Never max out your credit card and always charge less than the available limit.
11. Surround Yourself With Like-Minded People.
If you want to grow as a person, then you'll need to surround yourself with like-minded individuals who have goals that are similar to yours. Visit sites like Meetup and join groups that focus on entrepreneurship, certain industries, and financial independence. Attend trade shows and talk with some of the attendees there. Exchange emails and phone numbers with people you hit it off with. These people can be your mentors as well as good friends.
Make More Millionaire Money Moves
These tips will help you become financially stable in the long run. With consistent self-discipline, you can thrive with your finances just like millionaires.
