Perhaps you want to reach millionaire status by a certain age, like 30. Or perhaps your first goal is just to be out of debt within two years. Break bigger goals into more actionable smaller goals. For example, if one of your goals is to have a growing business in a year, start with the goal of fleshing out a business model within the first month.
Thomas J Stanley, The Millionaire Next Door (2004) and Stop Acting Rich. . . and Start Living Like a Real Millionaire (2009) Alexander Green, The Gone Fishin’ Portfolio.
Live beneath your means. A good rule of thumb for your living situation is to spend no more than one-third of your monthly salary on rent. Buy quality clothing but don’t pay ridiculous prices. A suit under $400 will do you just fine. Wear inexpensive watches, jewelry, and accessories. Don’t collect things. Drive a reliable but affordable car of an ordinary brand. Avoid prestige and luxury brands. Stop comparing yourself to others and trying to keep up with them through spending.
A savings account is one of the many places where you can set your money up to work for you. Your initial deposit of money grows whether you make additional deposits by interest. Learn the different types of accounts, including accounts like IRAs. Saving money requires self-discipline. Spend time working on any bad habits that take away from your self-discipline. Focus on what you can accomplish by saving rather than showing off to others through conspicuous consumption and instant gratification. Try to open a savings account with an online bank instead of a bank that has a physical location since digital banks usually have better savings interest rates. [8] X Expert Source Priya MalaniFinancial Advisor Expert Interview. 23 March 2020.
Blue chip investments may be slower and less exciting than other stocks but in the long-run, they’re sounder.
Consider renting offices that someone else furnishes, cleans and that get shared around. Spend only the time needed in them, to cut costs. If you do have your own offices, rent furniture or buy it cheap at auction. Lease anything that needs to be constantly updated, computers being number one in this group. Keep staff expenses under strict control from the beginning. Fly economy. Or use Skype and other online forms of virtual conferencing and avoid flying at all. Be eco-aware and turn off unused items all the time. Save the planet and your bottom line.
Don’t neglect the viability of your business. Always pay attention to what isn’t working and remedy it at the earliest possible opportunity. Don’t neglect the mundane but essential parts of running a business, like timesheets, tax, petty cash, invoicing, etc. Do them with clockwork regularity or employ someone who is capable to deal with these things. Deal with bad debt as soon as it rears its head. It isn’t going away, so the earlier you face it, the better.
