We all want to be rich
Who wouldn’t want to take their dream vacations any time of the year or in a couple of mansions in the most exotic locations in the world?
Being able to control your money and not have your money control you is everyone’s dream
Today, we share with you a couple of rules that will make you a millionaire. These rules are real and will work
Why do we know this? It’s because this advice came from different millionaires from all over the world, so we’re not making them up. Make sure you read until the end if you really want to join the Millionaire’s Club. Before we begin, subscribe.
Shark Tank star and millionaire investor, Mark Cuban swears by this rule almost every time he’s asked to give out advice on how to get rich. He shares with his audience the importance of living within your means, he says; never spend what you can’t afford even if it means living like a student and he makes so much sense.
Let’s look at it this way; if you earn $1,000 (N500,000) a month and your monthly expenses amount to $1,500 (N750,000) a month, you’ll be losing about $500 a month, $6,000 a year.
Mark Cuban’s advice is if you earn $1,000 and only spend $700 a month you’ll have $300 every month at your disposal; in ten years if you invest the money wisely there is no way you won’t be rich
Many people will give you advice on how to get rich; in fact, let’s not even go far, I bet you can see a couple of other money-making articles, it’s okay to read but don’t take it as Holy Grail. The best advice comes from people who have been there. They say learn from people’s mistakes so you don’t make your own
Who better to talk about money than Bethany Franklin. She was broke with about $200 in credit card debt when she started the Skinnygirl Empire. The Real Housewives star is ever so passionate about advising people on money matters. You will constantly find her telling people to save enough money that can cover their bills in case of an emergency. She also says that before you take a loan or buy anything with your credit card make sure you have a similar amount of money saved up somewhere or stashed away in an investment and I think this advice is gold
With a net worth of $20 million, Sarah Michelle must have some great money tips to share with the rest of us peasants. With all that money, believe it or not, she never buys anything on impulse. She even says she can stare at a jacket in a store she really wants, for days before making a purchase. We’re not telling you to do exactly what she does but create some limits and build that discipline.
Just because you like something or want it, doesn’t mean you need it.
Actors, venture capitalists, and entrepreneurs advise people to only invest in what they’re familiar with, by only putting money in industries you are familiar with.
For instance, if you love wine and drink it all the time and you often go to wine events and you can easily differentiate between premium and cheap wine; then investing in wine is something you should do.
Also if you want to start a business, start one whose operations you’re familiar with; for example, if you’ve worked as a banker for 10 years you can start your own personal finance consultancy business. If you’ve worked as a marketer in an e-commerce store, then you must understand the lingo of the industry and can comfortably start up your own agency
Only put your money, time, and effort into what you’re familiar with
You wouldn’t expect a millionaire worth $400 million to use Lyft or uber right? Well, Kevin O’Leary does and he swears by this rule. He believes buying or leasing a car is a waste of money, he says cars are heavy investments and calls them “money thirsty vampires” that will suck money out of your account. When you look at the maintenance, insurance, and parking costs, it all makes sense. To make it even worse, they don’t appreciate in value, well unless you have a rare vintage masterpiece
Sounds obvious right, but is it?
Do you know where to invest your savings to get decent returns? Well, Tony Robbins who is a master with a wealth of $500 million sure does. The New York Times bestselling author says compound interest is perhaps the most powerful tool in your investment arsenal
He’s made a lot of money selling books and his shows and talks but most of his wealth comes from his investment decisions. He further recommends putting aside part of your income however little into an interest-earning investment; some of the options he suggests include high-yield savings accounts, index funds, or even stocks. You can search for the options that have the highest interest rate return and stash your money there
Never doubt the power of compound interest
This piece of advice came from the one and only Oprah Winfrey. She doesn’t need any introduction, we all know she’s loaded and she’s not just rich but wealthy plus she’s also adored by all. On her website, she gives loads of advice on different topics including money. She attributes her massive fortune to choosing the right career path; before working in a radio station, she was a babysitter in a store employee when she got her dream job. It stopped being about how much money she could make but how she can be better in her career. She had a weekly salary of $100 at the age of 17 from a radio show but she said she would have been comfortable without being paid as she loved it so much
I bet you’re wondering how this will make you a millionaire, well if you love your job you’ll strive to be the best in it and people will notice you; this will create room for more opportunities which could end up turning your career path into a massive business as in Oprah’s case
I know by now you’ve learned a lot about millionaires and how they handle their wealth. Just because you have a lot of money doesn’t mean you have to splurge it everywhere. Suze Orman, an author, financial advisor, motivational speaker, and TV host started by saving as much money as possible. She wants everyone to get as much pleasure out of saving as you do from spending
This outstanding woman with a self-made net worth of $35 million believes the secret to saving more is to shift your mentality from saving, being a downer to a great feeling
Orman says; despite being seriously rich, she enjoys saving money by using coupons. Instead of thinking when can I start enjoying my saved money, ask yourself when do I start enjoying the saving process? If you build that muscle, then you’ll end up not caring about saving money anymore.
Spike Lee says, never be afraid to ask for money for your project or business. The American film producer, writer, Oscar-nominated director and author worth $40 million says asking for financial help should never be a shameful thing if you’re truly passionate about an idea but don’t have the money to fund it. Just ask your friends, family or even pitch it to strangers
If it worked for Spike Lee, it’ll probably work for you too. He says he’s never afraid to ask for money to fund movies he believes in, he also says never be deterred when someone tells you no as it only takes one yes to take you to the next level
Of course, we can’t talk about how to become a millionaire without mentioning Warren Buffett, one of the richest men in the world today. He’s currently the third richest man according to Forbes. The most fascinating fact about him is he is 100% self-made.
The billionaire investor who is worth $82 billion believes investments should be long-term, he isn’t a proponent of active short-term stock trading, he says the best way to build real wealth is to own portions of outstanding businesses with great management systems. He gave this advice back in 1988 and since then he’s stuck to it. He believes instead of hurrying to sell and make that quick buck, be patient and you will make real profit with companies that perform well in the long term
His advice is great because it’s easy to replicate and doesn’t need specialized skills and short-term trading needs anyone who can buy stock of any company and monitor the price changes. Today this can be done easily on your mobile phone using apps. Opportunities are endless
If you follow the advice here, you will become a millionaire. All these are wise words from the best in the world
We have one more tip that will certainly lead you on the right path to making millions;
If you’re one of those people who don’t understand where your money went right after receiving a paycheck, then pay attention you need to start making budgets, cutting your costs by identifying the cheaper alternatives, and start being disciplined even if you’ll have to create separate accounts to handle bills and concurrent expenses, start today
Once you have a budget for all your expenses, make sure you set aside some of your income for savings. A great way to do this is by automating savings so that the figure is deducted once it hits your account
Having a clear understanding of where your money goes is one of the most important steps to building wealth
1: Never live beyond your means
2: Have enough saved up to pay bills
3: Cut out impulse purchases completely
4: Invest in what you know
5: Use public transportation and ride-sharing services
6: Invest wisely
7: Get a job you love
8: Ask for help
9: Invest long term and finally
10: Know where your money goes
That’s it for today.