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4 Money Habits Every Entrepreneur Should Develop

4 Money Habits Every Entrepreneur Should Develop

Financial management is a crucial skill for anyone who wants to become boldly successful in their entrepreneurial pursuit. Being an entrepreneur means you have to take care of every aspect of your business, from managing the finances to handling and processing customer requests.

But to become successful in all these aspects demanded from you by your business, it’s necessary that you turns some skills into a long-term habit. Forming good habits are how successful entrepreneurs achieve their goals and manage to live a life of bliss and fulfillment.

The following are habits you should develop in order to become better with money and have the resources needed to keep your entrepreneurial career on top.

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1. Adopt a savings mindset

Saving money is very important for a healthy financial lifestyle. As an aspiring entrepreneur, having a financial backup equivalent to six months of earnings is usually recommended. But you can take it a bit further than that.

Your savings should be able to help you take care of your needs when things are not going as planned. This is usually how many successful entrepreneurs are able to keep themselves fed and sheltered after saying goodbye to their regular jobs in order to focus on pursuing their dreams.

The first step to making a savings habit stick is to always put away whatever you want to save first before deducting other expenditures from your earnings. You can even automate it by having whatever amount you plan to keep deducted from your account every month/paycheck.

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2. Be frugal

Being an entrepreneur means you have to be stingy with your money. You can no longer afford to splurge unnecessarily like you would while you were working for others. This is not because you cannot afford the expenses, rather it’s to help you instill a culture of discipline.

Being frugal doesn’t mean you do not love yourself, and neither does it mean you’re cheap. Mark Pearson, from Mydeals.com (a money-saving blog), thinks being frugal has helped a lot of successful entrepreneurs and businesses owners. “Frugality can become very essential when you’re committed to saving and are not earning extra income,” he said.

Forming a habit of being frugal will also have a positive impact on your business and life as a whole. Frugal spenders are more content with what they have and do not always feel the urge to “keep up with the Joneses”.

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3. Account for every purchase

As an entrepreneur, you have to be able to account for everything you spend your money on. This means, if you’re unable to justify moving into a bigger apartment, you should reconsider that option and put the money into your savings instead.

Being able to account for every penny you spend can open your eyes to a lot of unnecessary spending. This will help you put a stop to unhealthy spending habits and help you cultivate a habit of saving.

4. Prioritize your spending

In order to get your finances straight, you should begin to develop the habit of prioritizing your spending. Forming this habit will help you determine what demands your financial attention the most and understand why it does.

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Giving more attention to your most pressing needs and less attention to the more frivolous wants can help you become a better financial manager. Being a good financial manager is crucial for every entrepreneur. The best way to become a highly successful entrepreneur is to start forming good habits that will facilitate the growth of your career. Organizing your finances is a good, and very important, first step to take.

As an aspiring entrepreneur, what money habits do you plan to develop?

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Last Updated on January 21, 2020

How to Develop a Millionaire Mindset in 6 Simple Steps

How to Develop a Millionaire Mindset in 6 Simple Steps

We all like to dream about being financially wealthy. For most people though, it remains a dream and nothing more. Why is that?

It’s because most people don’t set their mind to achieving that goal. They might not be happy in their current situation but they’re comfortable – and comfort is one of the biggest enemies of growth.

How do you go about developing that millionaire mindset? By following these simple steps:

1. Focus On What You Want – And Take It!

So many people are too timid to admit they want something and go for it. When there is something that you want to accomplish don’t think “I could never actually do that”, think “I could do that and I WILL do that”.

Millionaires play to win, not to avoid defeat.

This doesn’t mean to have to become a selfish jerk. What it means is becoming more assertive and honest with yourself. You don’t have to grab off other people. There is a big pot of unclaimed gold in the middle of the table — why shouldn’t you be the one to claim it? You deserve it!

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2. Become Goal-Orientated

It’s almost impossible to achieve anything if you don’t set firm goals. Only lottery winners become millionaires overnight. By setting yourself attainable goals, you will get there eventually. Don’t try to get rich quickly — get rich slowly.

Let’s take the idea of making your first million dollars and expand on what kind of goals you might set to get there. Let’s also say you’re starting at a break-even position – you’re making enough to get by with a few luxuries, but nothing more.

Your goal for the first year can be having $10,000 in the bank within a year. It won’t be easy but it is doable. Next, you need to figure out the steps you need to take to achieve that goal.

Always look at ways to make growth before cutbacks. With that in mind, you might want to see if you can negotiate a pay rise with your boss, or if there’s another job out there that will pay better. You might be comfortable in your old job but remember, comfort stunts growth.

You may also have other skills outside of your workplace that you can monetize to boost your bank balance. Maybe you can design websites for people, at a fee of course, or make alterations to clothes.

If this is still not enough to make the money you need to save $10,000 in a year, then it’s time to look at cutbacks. Do you have a bunch of old junk that someone else might love? Sell it! Do you really need to spend $10 on your lunch everyday when you could make your own for a fraction of the cost?

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If you are to become a millionaire, you need to start accumulating money.

Here’re some tips to help you: How to Become Goal Oriented and Achieve More in Life

3. Don’t Spend Your Money – Invest It

The reason you need to accumulate money is for step three. Millionaires tend to be frugal people, and that’s because they know the true value of money is in investing. Being your own boss goes hand-in-hand with becoming a millionaire. You’ll want to quit your regular job at some point.

Stop working for your money and make your money work for you.

Rather than buying yourself a new iPad, that $500 could be used to invest in the stock market. Find the right shares (more on that later), and that money could easily double within a year.

There’s not just the stock market — there’s also property, and your own education.

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4. Never Stop Learning

The best thing you can invest in is yourself.

Once most people leave the education system, they think their learning days are over. Well theirs might be, but yours shouldn’t be. Successful people continually learn and adapt.

Billionaire Warren Buffet estimates that he read at least 100 books on investing before he turned twenty. Most people never read another book after they’ve left school. Who would you rather be?

Learn everything you can about how economics works, how the stocks markets work, how they trend.

Learn new skills. If you have an interest in it, learn everything you can about it. You’d be surprised at how often, seemingly useless skills, can become extremely useful in the right situation.

Start developing the habit of learning continuously: How to Create a Habit of Continuous Learning for a Better You

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5. Think Big

While I advise to start off with small goals, you absolutely should have a big goal in mind. If you have a business idea, then that is your ultimate goal – to start that business and make a success of it. If you want to invest your way to millions of dollars and do little work other than research, then that is your big goal.

There is no shame in not achieving a big goal. If you run a business and aim to make $1 million profit in a year and “only” make $200,000, then you’re still significantly ahead of most people.

Aim for the stars, if you fail you’ll still be over the moon.

6. Enjoy the Attention

To be successful, you have to be willing to promote yourself and enjoy the attention to a certain extent. Now the attention doesn’t need to be on yourself, it could be on your brand, but attention definitely attracts money.

Never be embarrassed to get your name out there. That means finding a spotlight and being brave enough to step right up underneath it.

If you run a business, try contacting the local papers. You’d be surprised at how amenable they often are to running a story about you and your business, and it’s all free publicity.

Above all, remember: You control your own destiny. Push hard enough for anything and you’ll get it.

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Featured photo credit: Austin Distel via unsplash.com

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