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Tips From Millionaires: How To Get Rich Easily

Tips From Millionaires: How To Get Rich Easily

Payday should be a happy occasion, but it sometimes seems that the money is spent before it even hits the bank. Living paycheck to paycheck becomes the norm, and you can never get ahead because you have nothing left after the monthly “bill collectors” get their share. It may seem like it takes luck and the lottery to become rich, but a little knowledge can take you a long way. Take a few tips from a millionaire and watch your money grow.

Make a Budget and Financial Plan

If you want your money to grow, you have to start by developing a smart budget and financial plan. Keep a notebook or a journal detailing your plan and stick to it.   A budget and financial plan can only work if you are willing to take it seriously. Write down your income and then tally up all of your bills to see how much you will have to spend. More importantly make sure that you have enough money to sustain your household. If your bills are larger than your income, you need to make some adjustments.

Before you attempt to invest or funnel your money in other directions, you should always pay your monthly bills. Being in debt keeps you from reaching your full financial potential so cut out any unnecessary spending. Write down any goals that you would like to obtain such as paying off your credit card debt, paying off your student loans or investing in a money market account. With any leftover money make sure that you use it wisely. You can put extra towards paying off debts, or you can invest in an IRA or contribute to a 401K plan.

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Create Multiple Income Sources

Of course bringing in a steady income is important but when it comes to being a millionaire, bringing in multiple streams of income is even more important. Take on an extra part-time job to bring in a little extra. Side jobs such as grass cutting, car washing and even selling on eBay are additional ways to make money. With the way, the job market can sometimes dip it helps to have a backup plan. This tip is especially important if your full-time income is not enough to cover all of your monthly expenses.

Work for yourself. Take the time to start your own business. Start building your empire or brand.   You can start off small. Turn your favorite pastime or hobby into your side hustle. Sell cosmetics online or start your own clothing line out of your home.   Nothing is better than being your own boss. A majority of the people who are in the millionaires club work for themselves. 

Save, Save And Save Some More

When you are first starting off it can seem hard to save but as little as $25 or $50 per month can make a difference. You don’t have to put your money under your mattress to watch it grow. Put it in a savings account that accrues interest and let your money work for you. Build an emergency fund so if you are laid off work or have a family or household emergency you are covered.

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Find small ways to save money. Eat out less, downgrade your cable or tweak your grocery budget so that you can save more. Pay off your credit cards and any other debts so that you can save this money. You should aim to save as much of your income as you can. The more you save, the more you have to invest either back in your own business or in the market. Many millionaires started off small, but their ultimate goal became to save just as much if not more than they spent.

Make It A Rule To Live Below Your Means

Most rich people will probably tell you that one of the biggest mistakes that people make is living above their means. Expensive cars, clothes, jewelry and trips are nice, but they come at a price. Don’t allow your paycheck to control you; control the paycheck. Remember your financial goals and stick to them. Of course, this does not mean that you cannot have nice things, simply focus more on needs than wants.

Do your research and avoid mistakes during the car buying process to ensure that you make the best choice for your budget. You don’t have to get an expensive or flashy car simply because you can afford it. Maybe considering buying used instead of new which can save you even more money. The money you save can be put into savings and take you that much closer to your goal.

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If you are guilty of impulse shopping, avoid malls and boutiques and instead focus on wearing the clothes you have. Cash is king. Though, in an emergency, you may have to use a credit card, you should try to limit their use. If you know that you will not be able to pay it off within a few months, then do not charge it. Think about all the times you have declared in desperation, you have nothing to wear but yet have a walk in closet full of clothes. 

Talk To The Professionals

It is a common misconception that you have to be rich to talk to a financial planner. A financial planner helps you to make smart decisions with your money regardless of whether its one hundred dollars or one million. A financial planner can help to explain about portfolios and investments. They will use their expertise to help you make a decision not make it for you. It is still your job to be involved in the process and know exactly where your money is going. Millionaires often use financial planners to help them manage their money, but they are also often involved in the day-to-day affairs of their finances. So remember to follow the money.

Will you become a millionaire soon just because you follow these steps? No, you may not but you will be armed with all of the tips you need to develop your plan and get the ball rolling. The ball is in your court.

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Featured photo credit: GotCredit via flickr.com

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Brian Wu

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Last Updated on March 4, 2019

How to Use Credit Cards While Staying Out of Debt

How to Use Credit Cards While Staying Out of Debt

Many people will suggest that the best thing to do with your credit cards during these tough economic times is to cut them up with a pair of scissors. Indeed, if you are already in huge debt, you probably should stop using them and begin a payback strategy immediately. However, if you are not currently in trouble with your credit cards, there are wise ways to use them.

I happen to really love my credit cards so I will share with you my approach to how I use mine without getting into deep financial trouble.

Ever since about 1983 when I got my first Visa card, I continue to charge as many of my purchases as possible on credit. Everything from gas, groceries and monthly payments for services like my cable and home security monitoring are charged on credit. Despite my heavy usage, I have maintained the joy of never paying any interest fees at all on any of my credit cards.

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Here are some tips on how best to use your credit cards without falling into the trap of paying those nasty double-digit interest fees.

Do Not Treat Credit Cards as Your Funding Sources

Too many people treat their credit cards as funding sources for major purchases. Do not do this if you want to stay out of trouble. I use my credit cards as convenient financial instruments so I do not have to carry around much cash. In fact, I hate carrying cash, especially coins. When you buy things on credit, the purchases are clean and you will not get annoying coins back as change.

I do not rely on my Visa, MasterCard or American Express to fund any of my purchases, large or small. This brings me to my golden rule when it comes to whether I will pull out any of my credit cards either at a retail or online store.

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I never purchase anything with my credit cards if I do not have the actual cash on hand in my bank account.

If I really cannot pay for the item or service with cash that I already have at the bank, then I simply will not make the purchase. Remember, my credit cards are not used as funding sources. They are just convenient alternatives to actual cash in my pocket.

Make Sure to Always Pay Off Balances in Full Each Month

The next very important part of my overall strategy is to make absolutely sure that I pay the balances in full each and every month no matter how large they are. This should never be a problem if the cash has been budgeted for my purchases and secured in the bank. I have always paid my full balances each month ever since my very first credit card and this is why I never pay interest charges.

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Using Credit Cards with Rewards

Most of my credit cards are of the “no annual fees” type, including one MasterCard on a separate account I keep at home as a spare in case I lose my wallet or incur any fraudulent charges. However, I do use a main Visa card which does have an annual fee because all purchases on that card reward me with airline frequent flyer points. For me, the annual fee is worth it since I do travel and I get enough points to redeem many free flights.

You have to decide for yourself if you will charge enough purchases on credit each year without paying interest charges to warrant a credit card that rewards you with airline points (or other rewards). In my case, the answer is “yes” but that might not be the case for you.

I occasionally use a MasterCard or American Express card on small purchases just to keep those accounts active. Also, I have been to the odd retailer that accepted only a certain type of credit card, so I find that having one from each major company is quite handy. Aside from my main Visa card which earns the airline points, the rest of my cards are of the “no annual fees” variety.

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So this is how I use my credit cards without getting into any financial trouble with them. This strategy is recommended only if you are not in debt, of course. In fact, it is worth keeping in mind once you’re out of debt so that you can keep your credit cards active and treat them responsibly.

What are your credit card usage strategies? Let me know in the comments — I’d love to hear what methods you use.

Featured photo credit: Artem Bali via unsplash.com

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