Just because you don’t have the bank account of a millionaire doesn’t mean you can’t manage your money like a millionaire. Improving the health of your finances is all about improving your relationship with money. Here’s a handful of key takeaways we can all learn from some of the wealthiest people in the world.
Forget About Instant Gratification
Before you swipe your card, click the “Purchase” button on your computer, or fork over your cash, ask yourself if you’re making the purchase because you want an immediate rush of happiness. If so, the next question to ask is whether that happiness will curdle to regret in the near or far future. Rather than make financial decisions because what you’re buying will give you instant gratification, it’s better to make purchases that give you lasting gratification. Buying a cup of coffee may put a smile on your face until you finish it, but stashing that money in an emergency savings account will give you peace of mind that can last for years.
Invest in the Stock Market
There’s no doubting that the stock marketing and putting your money in it can seem intimidating. That said, it’s easier than ever to get started with investing. Better yet is the fact that you don’t need a lot of money to start investing. There are plenty of apps and online services that break down how the stock market works and how you can start investing a little here and there as another means of saving for retirement.
Make Your Savings Automatic
Speaking of emergency savings and the stock market, you can automate both. What’s so great about automating is the fact that you don’t have to consciously remember to put money into a savings account or your stock market investments, giving you one less thing to worry about. Talk to any bankruptcy attorney in Flint, MI, or elsewhere and you’re sure to understand how this simple step can do wonders for your financial health and any anxiety you may have surrounding your financial health.
If you do decide to automate your savings and investing, be sure you have that money in the funding account. Otherwise, any fees you incur are likely to wreck your good intentions.
Get Help Before You Need It
Speaking of bankruptcy attorneys, the best time to get help with your finances is well before you actually need it. Sit down with a financial planner (checking to see if any in your area offer a free initial consultation) to get a professional financial checkup, so you know whether you’re doing as well as you think and hope you are when it comes to your money. Stockbrokers, financial planners, and tax consultants can offer you some great insights on ways you can maximize your efforts and your money. There could be a great opportunity you’re unaware of that you may come to regret years later when you learn it’s come and gone.
Differentiate Between Your Wants and Your Needs
Another question you can ask yourself before making a purchase is whether this is something you want or something you need. This answer requires a level of brutal honesty, one you need to come to terms with if this tip is to do you any good. Do you really need to keep paying for cable every month when you can cut the cord and save money on one or two streaming services? Do you need to eat out again, or do you have leftovers at home in your fridge that you can have for a few meals? Once you learn to tell the difference between the two, you can save a lot more money than you realize.
This is just a quick starter for thinking like a millionaire. Use these tips to see how they work for you and your finances. You don’t have to look like a CEO to spend and invest like CEO.