“Having money sucks will never solve your problems if management of cash moving in and out of hand is your problem,” Robert Kiyosaki. Indeed, the wealthy are not physically or mentally different from the rest of us. The only difference between the rich and a peasant like you and me is the mindset.
What makes it seem like the rich have mastered the secret knowledge of being wealthy is that they simply understand that building wealth is similar to building a muscle or losing weight. You need to be disciplined and put more effort reputedly every day.
Here we have reached out to several self-made millionaires, credit industry gurus, and financial advisors, and they all believe that it doesn’t matter how much you make a day, to get to what the top 10 richest individuals in the world do
Here are the top 5 practices you can use to manage money like a millionaire without spending like one
Invest automatically and diversify your investments
Investors like warren buffet practice the “buy and hold” strategy. This strategy involves buying an asset or stock today at a low price with the hope in 10 or 30 years to come; it will cost more and give high returns.
The beauty of this strategy because it does not demand you to have a lot of money since you can start investing in his with $5 or less and continue adding more and more as you earn or save.
Financial advisors advise that you not invest in one asset only, especially if you plan to invest in stocks and bonds. Keep in mind that the market collapses; therefore, you should invest in different stock and bond markets.
Also, ensure you make the best investment plan intangible investments such as real estate, a multi-billion industry that acts as a risk management tool and grows in value with time.
Create a cash flow plan
One secret about millionaires do not budget; they have a plan tracking how they spend every single penny on bills. Successful millionaires do this by themselves. Luckily with the help of technology, you can let your website services or apps such as billry do it for you.
Creating a cash flow plan helps you project your collections, add in any amount you expect to collect from your account receivables and help you take a look at your account payable from the previous period.
Be honest with your debt
A credit industry guru advises you that the best way to manage your money is to clear debts as much as possible. This is because without good knowledge on how to compare Personal Loan Offers. This is even worse since they generate an extra APR and also ruin your credit card score.
To become stable financially, you need to eliminate debts to zero since it will save you many interest fees that you can use to add to your investments. If you truly need a loan, ensure you go for short-term loans and credit cards. Also, make sure you pay them reasonably without missing deadlines.
Treat your life like a business
Looking at my life as a business helped me to become a self-made millionaire in my late. I created a list of my income goals in my late teenage. Each month I evaluated if I was on track to meet the goals in the model and make changes.
Additionally, I began investing my income in stocks, blogs, and startup businesses which help me increase my source of income. All this gave me a roadmap of where I had to become a millionaire.
Reduce your expenses
I made it a point to live on a fraction of a stipend life in my twenties. I had rented the cheapest apartment that I could find but with security, water, and electricity. When I found a cheaper than$400 apartment suiting my needs, if I found a cheaper apartment I moved to it immediately
It always felt good to see the numbers of savings growing from $20 to $40. Using modern technology, I would surf through the internet to search for banks offering interest on savings and open accounts since they said I would get a $300 bonus for free after creating an account.
Additionally, apps and websites like budgetry can help you track your expenses of that day month year and also predict help you predict you’re following month expenses