Joining the millionaire club by the time you turn fifty isn’t an impossible goal to achieve if sound financial decisions are made early on in life. Simply saving money bit by bit won’t transform you into a millionaire one day. You will have to take conscious steps to use your money today wisely so that it transforms into millions when you enter your fifties.
The world is full of stories of people who weren’t millionaires by birth, yet they went from rags to riches by making wise financial moves. You think it’s just a dream and just not possible? Don’t be so pessimistic, search the internet and you will learn how many people handled their money so remarkably well that they found themselves to be millionaires when they completed their half century.
Today, we will tell you about some of the ways in which you too can grow your wealth for a better future.
9. Live Prudently
A penny saved is a penny earned.
Austerity in spending is widely recognized by millionaires as a source of wealth because such drives ensure that the value of money is maintained and ensured too.
If you are looking to climb the staircase to millionaire grade, then you mustn’t be driving ostentatious cars, living in a glitzy home and spending ruthlessly on the latest gadgets. If you track down history of the people who turned into millionaires over a period of time, you will notice that they had quite a frugal lifestyle. Don’t be surprised to find out that they usually shopped from discounts and sales.
8. Track Your Money
You simply can’t turn into a millionaire if you’re careless with your money. You have to have a check and balance system for your money; you must know all the places where you have keep your money (investments and banks accounts). You can download apps on your phone to help you manage your money and provide you a good outlook of all your financial assets.
7. Establish A Budget And Stick To It
Budgeting is very important because most of us are prone to overspending, and spending on things that we don’t really need. If you really want to envision yourself as a millionaire when you are fifty, you must start to budget like a pro. This will help you control your expenses, so that you will spend less than you make. Make sure you go back to your budget once in a while to track any differences that arise so that you can begin to fix them in time.
Learn the 50/30/20 Rule of Thumb introduced by Harvard bankruptcy expert, Elizabeth Warren. The rule asks you to set aside 50% of your money for your needs, 30% for your wants, and at least 20% for your savings and debt repayments.
6. Start To Save
Money saved is as good as money gained.
We mentioned at the start that to turn into a millionaire, you will have to use your money wisely, hence you will have to save so that you derive greater benefit from your money. Also, remember it’s not a good idea to keep all your eggs in one basket, to invest in multiple savings accounts, to get to the goal that you have set for yourself.
The shoes on sale or the amazing discount on that latest gadget may be truly tempting, but do you really need them? The more you save, the more quickly you will reach your goal…now isn’t that even more tempting? The money you save will help you avail significant investment opportunities, and will also cushion you against uncertainties in life.
5. Step Onto The Investment Bandwagon
Learn to invest to get the millionaire crest.
You may think that savings are going to work for your goal, but you have to go the extra mile to earn the million you want. Don’t let your money sit idle and unproductive. Imagine how much it can contribute to your million by gaining exciting amounts of compound interest, hence investments are more important than saving. Look into the diversified investment opportunities such as stocks, bonds, retirement accounts and invest your wealth to reap in the long term.
4. Get Rid Of Fruitless Debt
You know that with every card swipe, you are stepping into a greater debt pool. Yet, if your credit card bills remain within a certain limit, or indicate spending on only specific expenses, this can help you earn cash-back or maybe reward dollars as well; hence you should apply for such credit cards that can help you reach your goal.
Nonetheless, consider your debt as a major obstacle towards your goal attainment, it won’t help you get rich therefore try to get rid of it as soon as you can.
3. Don’t Let Go Of The Free Bucks
You might not know how much money you are losing by not making use of the programs that are offered by your organization. There are plans like 401k contribution match, where your contribution to the plan will be matched to a certain percentage by your employer’s contribution. Make use of this free money, while you can, and try to find about such plans from your organization.
2. Manage Your Accounts Practically
You must know how much you add or take out from your accounts (credit withdrawals, deposits etc.) and it’s not very difficult as well. If you have several accounts in different places to diversify your money then it’s good but you must also manage them accordingly and try to keep them simple.
1. Persevere To Join The Millionaire Club
While all these steps will take you towards your first million, you must know that you will have to demonstrate great patience and extraordinary prudence. You have to set your goal, try to create a plan to achieve it, and don’t lose sight of it. Think big and just shoot for it. Perseverance is one of the most important things that you will have to show to get to your million by the time you turn fifty. Remember, there’s tons of money on this planet, you just have to plan, perform, and persevere.