“If you look at the average amount of money you will earn over your lifetime, and figure out how many years you are working—most people earn more than a million dollars over their working life but very few people become millionaires,” says Nancy Butler, a certified Financial Planner. “How they manage what goes through their fingers usually makes the difference.”
This is often the case in today’s hustle and bustle world. Costs incurred due to unplanned expenditure – children, dinners or unexpected home renovations all accumulate and more often than not severely halt our millionaire aspirations. Some small steps and minor adjustments could lead to a large windfall at the end of the fiscal year. Financial planners advise us to employ the following strategies daily to help us further along the road to prosperity:
Reverse your Thinking
Common thought dictates that once our paycheck has arrived, we spend our money to pay our bills and settle debts and then save the rest. Planners, however, feel that we have it all ‘backwards’, and that we need a change of mindset. They believe we should be saving for our financial goals first, then pay bills and then consider spending the money left over.
Look Where you want to go
Goal setting improves our focus and motivation – and sets us on a very real, measurable saving and expenditure track. Experts advise incorporating a 5-year plan to outline our specific money goals and the steps needed to achieve those goals. An example would be saving six months’ income to pay for an emergency fund, reunion or family events and even a down payment on a house. A five year plan is a good way to plan ahead and gives a realistic overview of exactly how much saving is needed to achieve that goal within the specific time frame.
Employ Private Mind Tricks
Creating financial ‘rules’ is a great money saving habit to include in any lifestyle and expenditure routine. Known as heuristics, these rules are created by us to curb purchases of items that might not be essential in our lives. Heuristics can easily be incorporated in our daily lives by just tweaking a few of our spending habits. These may include setting a limitation of how much spending will go to certain items, or cutting back on the amount of times we frequent a restaurant per week, to even setting out exactly how much will be spent on baby clothes a month. Behavioral economists believe that practicing good heuristics can aid us in simplify the many purchasing choices we have to make daily.
“Secretly” Live Rich
Contrary to popular belief, most millionaires don’t spend more money than they need to, and most live well below their means. They are in fact saving instead of spending. The key here is to find a point in expenditure where you can acquire exactly what you need to live comfortably, and then just ‘stay there’. Don’t spend more than what is essentially required and save or invest the rest.
Tackle Retirement Now
A big mistake most people make is to leave retirement saving as a last priority. It is understandable as most people in their twenties and thirties are making wedding, home and car payments. This is another case where we have things ‘backwards’ as the later we start saving, the more we have to save, whereas the sooner we save for retirement, the more time we have for it to compound and grow. If our money has less time to grow (waiting till the last minute to plan and pay for retirement), then it minimizes the impact of compound interest it may generate.
Know EXACTLY what’s coming in and what’s going out
It’s now possible to track your expenses now, thanks to easy-to-use free apps like Cashbook Expense Tracker or Expensify which help you budget, set goals and optimize savings. Planners advise us to become ‘Chief financial advisers of our household’.
Get Out of Debt
Getting out of bad debt such as credit card debt, which incur huge monthly interest rates, should be priority number one. Everyone builds up debt at one point in their lives whether its mortgages or student loans – but as soon as debt starts hiking up those rates it becomes negative debt and this hinders our ability to save. Emergencies are inevitable; therefore, we should have an emergency saving account which we put enough of our general savings into. Then consider only using the credit card for dire emergencies not able to be covered by your emergency account funds.
Increase your Earnings
Lifestyle expenses often grow along with earning more, so as a rule, we need to save what we can and invest the rest. The only to two ways to increase our net worth is to either spend less or save more. Aside from getting a raise or winning the lottery, there are a few ways to get more money flowing in. One way is to diversify your income streams by working a second job or part-time employment doing something that you love (a hobby that pays, perhaps). Another way is to look for good investment opportunities like property for example.
Consult an Expert
Lastly, consulting a qualified financial planner is always a good tactic to aid in planning your saving strategies. These folks could direct you in the right direction and guide you in making important saving decisions based on your unique income, lifestyle and expenses.
There is the odd chance of actually striking it lucky and being able to accelerate your unique saving ambitions. How? Well, the answer is surprisingly simple – by participating in established, reputable online lotteries on world-class vendor services such as PlayHugeLottos.com, you are automatically afforded the opportunity of winning anything up to nine digits in the superb weekly draws.
All that’s required is your simple registration, choosing your lucky lotto numbers and sitting back to wait for the draw results. What are you waiting for? Play now, and be a part of this incredible world-wide online lotto phenomenon!
This website is owned and operated by Secure View Services Limited, of 3rd Floor, Methonis Tower 73, Archbishop Makarios Avenue, 2082, Nicosia, Cyprus using the Curacao gaming license (No: 8048/JAZ) of its holding company Play UK Internet N.V.
© 2019 Play UK Internet N.V