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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

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Heather Poole

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