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Want to Make Your First Million? Don’t Save Every Penny! You Should Spend Money Wisely Instead

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Want to Make Your First Million? Don’t Save Every Penny! You Should Spend Money Wisely Instead

Have you ever heard the saying, “You have to spend money to make it?” I have. In fact, I’ve given that cliche statement as advice half a dozen times. While I tell entrepreneurs to spend money on the right team, I never use that advice myself. After all, I’m in my twenties still! I don’t have the luxury of spending money as if I’m made of it!

But these excuses are detrimental. In fact, the idea of spending money to make money is not as dangerous or risky as it may sound. Sure, it seems counterintuitive, but bear with me. I promise it will make more sense soon.

Saving Every Penny You Earn Can’t Bring You to Your Desired Destination

So many people think the only way to save money is to give up their social lives in order to minimize all those “unnecessary” expenses.

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What’s problematic with this approach, aside from how miserable you will be ignoring your friends’ invitations, is that it’s only a short-term way to save money. Think about it: are you really going to stay at home and never come out forever? The goal is to be future-focused; saving every penny and dollar you can is not exactly effective. What’s more important is spending on the investments that can bring returns.

I know what you’re thinking, “But Heather, I don’t know how to invest in general! How will I know how to invest in order to double my dividends? That’s for business-savvy people and those really good at math!”

Not true.

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While knowledge of those things can be helpful, anyone can be an expert investor and spender. You just need a little insight. Plus, we aren’t talking about becoming an investment banker. We’re talking about knowing when to invest your money into something and when to withhold. And it’s easier than you think.

Spending Money in the Right Way Can Help You Generate More Money

Enrich your mind through lifelong learning

This is one of those long-term money-making methods. While some people may find it unfair, the more educated you are via school system, the more desirable you are to companies who are hiring. This comes in handy when discussing salary, because the more experience college or university gave you (even in the form of unpaid internships) the better chance you have at requesting more than you might otherwise feel comfortable.

Even if you’ve left the formal education system, taking classes after work to expand your skill set can make you more popular and competent in the job market in the long-term.

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Prevention is better than cure

Listen, as an American, I know how frustrating health insurance can be. Even now with more access to it than ever, if you are paying out of pocket for insurance it’s a big sum of money! But here’s the thing: if you don’t get insurance because of the price tag, when you find yourself needing to go to the emergency room or even to a doctor’s appointment, you will be paying much more. And that expense will leave you with nothing left over to invest and grow.

When you feel more attractive, you can attract more opportunities

This one is so important, no matter how old-fashioned it may seem. Invest in your appearance. I make a lot of jokes about how much money I spend on quality makeup, complexion/skin products and getting my hair and nails done, but at the end of the day, it’s an investment I feel good about. When I look healthy and feel attractive, I approach people with more outer confidence.

As a disclaimer, this is not me telling you that in order to make money you have to be attractive. No way. What I am saying is that you should feel attractive – whatever that word means to you. If you come off as insecure and weak, it can be difficult to ask for that raise you absolutely deserve, or even get a loan you know you’re capable of paying off. There are (semi-depressing) studies out there that prove this, but if you don’t want to get wrapped up in them, just take my word on this one.

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As a quick example to help put it into perspective, I work for a very casual company (I’m talking yoga pants and blue jeans on the daily!) but when I first interviewed, I wore a suit. I knew the atmosphere was super casual, but I wanted to ensure they knew I was serious and professional. The way you look is the way you brand yourself as an individual. So who are you marketing to, and what is your message?

Set up a website to promote your expertise

Sites like LinkedIn, or even websites boasting your personal domain, can be a great way to up your income. Having a professional image and resume helps people see you as a trustworthy, knowledgable individual they would gladly hire. So if you’re a photographer, make your own website! If you’re a Freelancer, do it too! If you’re passionate enough to make it your career, then prove that to the world through a portfolio they can access 24/7. Learn how to maintain mailing lists, become an expert marketer. We live in a technology age; anything you could need to know is at your fingertips!

When you can’t do everything yourself, spend money to get help

When it comes to investing, and to your life in general, it’s essential to know what you need.[1] For instance, if you are trying to start your own company, your numbers will be in the red within a month if you don’t have the right team. Invest in a brilliant accountant. Invest in the perfect assistant. Have the right marketing team and IT guru. Yes, at first you will feel like you’re bleeding money, but when that team starts working with you and you see the spike in clients and income, you won’t remember any of that initial stress. The same is true when it comes to investing your money. What is it you need? A retirement fund, or a mansion? What is your goal? Once you have the intention set, you can begin to achieve it.

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Reference

More by this author

Heather Poole

Heather shares about everyday lifestyle tips on Lifehack.

How to Find Your Core Values to Live a Fulfilling Life 60 Workout Motivation Quotes for Tough Workouts The 7 Types of Learners: What Kind of Learner Am I? What To Eat (And Not To Eat) When You Are Suffering From Inflammation! Yes Life Can Be Boring Sometimes. But There’re Some Tricks to Make It More Interesting

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Last Updated on January 27, 2022

5 Unexpected Places to Boost Your Productivity

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5 Unexpected Places to Boost Your Productivity

The environment of a typical office or a quiet library may sometimes lessen your productivity as the unchanging views fail to stimulate your senses and keep your brain running. If you are the kind that dislikes absolute silence or minimal noise when working, these unexpected places to work may boost your productivity level!

1. Coffee shops

Research has shown that an adequate amount of ambient noise stimulates your senses and keeps you alert. Where else better to find some chatter and clatter to boost your creative juices? Working in the coffee shop also guarantees something else: unlimited supplies of caffeine!

Caffeine wakes you up by fooling adenosine receptors and speeds transmitting activities up in your nerve cells.If you do decide to try this place out, make sure that your work computer is facing the coffee shop customers so you will be less likely to procrastinate or go to inappropriate sites because people are secretly watching you.

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If your workplace requires you to be in the office, try this website and/or phone app that provides you with sounds from coffee shops around the world. Want to work at a cafe in Paris? No problem, it’s just a button away.

2. Cafeterias

Similar to coffee shops, company cafeteria or food courts provide consistent noise and the smell of food. The aroma of food makes you look forward to your next break and should motivate you to complete your work.

The act of eating likewise keeps your brain alert and produces dopamine. But make sure only to snack and stay around 60% full so that each bite is rewarding and invigorating. Snacking every 90 minutes should keep your brain balanced enough to focus on the work at hand.

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3. Empty University Classrooms  

Whether or not you’re an university student, we have all been a student at some point in our lives. And when you’re in a classroom, your brain is primed to stay focused because you have been conditioned to concentrate in class. In comparison to your bedroom, where your brain is primed to relax, sleep and have fun, the environment of the classroom triggers your memory to stay alert (unless you never listened in class) and work.

If you do decide to try working in an empty university classroom, be sure to bring a studious friend. Once you see that your friend or coworker is working hard, you would feel guilty for procrastinate and be more competitive.

Ever heard of environmental context-dependent memory? Research has shown that environmental context influences the way we encode information. If you study in the same place you first learned the material, your chances of recalling the information are significantly increased. Use environmental cues to your advantage so you spend less time doing more work!

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4. Outdoors

Fresh air, sunlight, cool breeze. Talk about getting your vitamin Ds the natural way. A healthy body is crucial to being productive. If you have a porch, use it to maximize your productivity!

On a cool day, the crisp air is good for waking your brain up. If your work station is indoors and poorly ventilated, the build up of carbon dioxide will cause your brain to be less active, hence, less productive. Try to bring some work to a park nearby or an unsheltered town square where you are exposed to the sun. Fresh air will vitalize your brain and the warm sunlight will bring a smile to your face.

5. The Shower 

Many people experience their “Aha!” moments when they’re in the shower. Why is that? The hot water helps with circulation and improves blood flow to your brain, giving it more oxygen and nourishment to break down your work block.

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If you aren’t motivated to work or feeling bored, a good shower will not only open up your pores, but also give your brain a boost of energy. Keep a waterproof white board and markers in the washroom so you will never lose those wonderful ideas again!

Featured photo credit: Thomas Franke via unsplash.com

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