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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 June 25, 2019

5 Books You Must Read if You Want to Be a Millionaire in Your 20’s

5 Books You Must Read if You Want to Be a Millionaire in Your 20’s

Millionaires and billionaires read more than you think. In fact, the likes of Warren Buffet are said to read 1.000 pages a day. As the old saying goes “There’s no smoke without fire”; so, start off with these 5 incredible books!

1. The 48 Laws of Power

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    “If you are unsure of a course of action, do not attempt it. Your doubts and hesitations will infect your execution. Timidity is dangerous: Better to enter with boldness. Any mistakes you commit through audacity are easily corrected with more audacity. Everyone admires the bold; no one honors the timid.”

    On your journey to becoming a millionaire in your 20’s, there will be many people trying to manipulate you into doing what they want. This international bestseller by Robert Greene is the widely read by those in the entertainment industry because of its dog-eat-dog environment. This book is a must-read for anybody who wants to claim power and keep it. it’s a fun read that tells the story of some of the most powerful people in history.

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    An example of a law of power is: Always say less than necessary.

    • When trying to impress, the more you say the more common you look and less in control.
    • Be vague.
    • Powerful people impress and intimidate by saying less.

    2. Influence: The Psychology of Persuasion

    influence-the-psychology-of-persuasion

      “Often we don’t realize that our attitude toward something has been influenced by the number of times we have been exposed to it in the past.”

      This book explains the core strategies people use to influence others using real world examples. Robert Cialdini’s book goes over human quirks like the need to be consistent, and how you can use that in your marketing strategy to make more money. “People’s ability to understand the factors that affect their behaviour is surprisingly poor,” Cialdini says, “which leads to people making poor decisions without realising why.”

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      Cialdini includes real world examples of why people join cults, buy certain jewellery, or give to charity.

      3. Blue Ocean Strategy

      blue-ocean-strategy

        “Value innovation is the cornerstone of blue ocean strategy. We call it value innovation because instead of focusing on beating the competition, you focus on making the competition irrelevant by creating a leap in value for buyers and your company, thereby opening up new and uncontested market space. Value innovation places equal emphasis on value.”

        This book argues that leading companies don’t succeed by battling competitors in “Red Oceans”, but by creating “Blue Oceans” where they have uncontested market space to grow. It goes over case studies like “Cirque Du Soleil” who created a blue ocean by creating a circus platform that didn’t include animals or more than one act on at once but instead, decided to focus on talented performers and music who created a mystical storyline.

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        4. The Fountainhead

        the-fountainhead

          “A man’s spirit is himself. That entity which is his consciousness. To think, to feel, to judge, to act are functions of the ego.”

          The Fountainhead takes place in the United States, mostly in New York City, during the 1920s and 1930s. Billionaire Mark Cuban named his yacht “Fountainhead” after this book. This classic novel is about the struggles of an innovative architect named Howard Roark and his effort to achieve success on his own terms. Many entrepreneurs are inspired by this book because it depicts how you should be uncompromising when it comes to your vision and your goals. If you follow this way of life, you develop the ability to change the world and creating something unique.

          5. The Compound Effect

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            “Do you know how the casinos make so much money in Vegas? Because they track every table, every winner, every hour. Why do Olympic trainers get paid top dollar? Because they track every workout, every calorie, and every micronutrient for their athletes. All winners are trackers.”

            This book is by Darren Hardy the CEO of Success Magazine, he goes over how it’s the small, seemingly insignificant choices that compound to create success or failure over time. No one has a plan to be broke and fat but that’s what happens when you don’t have a plan and go along the path of least resistance. Hardy argues that you cannot improve something until you measure it and to always take 100 percent responsibility for everything that happens to you.

            So, those are five books you must read if you want to give it a try to become a millionaire in your 20’s. What are the best books you have ever read? Leave a comment and share these life-changing books with your friends to help them become successful like you.

            Featured photo credit: Bill Gates Foundation via businessinsider.com

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