One of the greatest misconceptions about the wealthy and elite are that they were all born into it. While many may have been, surprisingly, many have not.
In any event, those who are currently living off of their family’s legacy still have parents, grandparents, great grandparents and beyond who earned that fortune for them, so it’s important to recognize that wealth is accessible to anyone.
The key is to be smart about it. While we can’t promise that you’ll become a millionaire overnight with these healthy finance habits, we can guarantee a steady and gradual return on your hard-earned dollars.
If you’re interested in making more with little effort, these habits are for you:
1. Be Smarter with Your Money
Impulse purchases—particular those including high value items like vehicles and homes—can land you in a disastrous situation.
Rather than spend impulsively, spend wisely by writing down what it is you want to buy and why you want to buy it. Make a list of pros and cons, cross out anything that is solely for entertainment purposes, and wait to purchase things when they go on sale.
And there are many other easy ways to save on your spending, such as:
- Home brew your coffee (you can even program your coffee maker every day!)
- Purchase items in bulk
- Shop for used items/items on consignment
- Double check your insurance rates annually and negotiate better prices
2. Plan How to Tackle Debt
Most people these days have some amount of debt. It doesn’t matter how much you have; the important thing is that you have the opportunity to pay it down if you have the right attack plan in place.
The ideal is to pay at least 10 percent more of each payment due until you are all caught up (if you can’t manage the minimum payments, call them up and request a payment plan to reduce your interest rates). There are several services out there which can help you consolidate your debt, and never be afraid to try and negotiate lower interest lines of credits with banks (which could include some financial perks!) to pay down your debt.
3. Throw Some Cash into Savings and Investments
The average financial planner will advise you to save anywhere from 10–15 percent of your income each month. We know, that isn’t exactly realistic for many.
But $50, $100, or $200 stashed away in a fund every month will make a big difference when the unexpected occurs. Better yet, when wisely invested, you can make money on top of that money, thus growing what you already had in ways you couldn’t do with a standard savings account!
Diversifying your investments is key in protecting your finances and getting the most from your money. Tax free savings, stocks, and bonds are all great. Another up and coming option: P2P (peer to peer) lending. These are opportunities which allow you to directly contribute to a community by financially supporting a growing business.
To find out more, we welcome you to contact us.