Most self-made millionaires have neither a large income, nor a flashy lifestyle, but they hang on to what they earn and use it wisely. Paying attention to the costs of your lifestyle and simplifying where you can, makes a huge difference.
Often by reducing our expenses and simplifying our lives, we not only add to our bank accounts, but to the quality of our lives. When we remove some of the clutter from our lives it is often easier to see the more important things. People who practice “voluntary simplicity” have discovered the joys of being home more, working less, spending less and throwing away less. People who strive towards sustainable living and self-sufficiency often enjoy a healthier and happier lifestyle than those who spend their energies accumulating stuff. After all, if you keep buying stuff, you’ll end up with stuff all!
Even though we live in a world of opportunity and abundance many people voluntarily enslave themselves by burying themselves in credit card and other debt, and poverty. We are surrounded by people who are becoming rich while most people are going backwards financially. If you can read this e-guide, you are literate, have a computer and are in tune with cyberspace. You can become as wealthy as you choose to be. Here are the top ten keys to your financial success:
1. Choose financial success. This is different from wishing, hoping, wanting or even desiring to be rich. This is deciding to be rich. Make a commitment to yourself that this is your goal. You will make it happen! Financial freedom is not an accident or a stroke of luck. It may require some short-term inconvenience and definitely consistent and persistent action on your part and the result is worthwhile. Are you committed to achieving financial freedom?
2. Educate yourself. Since finance and personal investing is not taught at school, you need to learn and understand how money works through self-education. Read books, listen to tapes and CD’s and attend seminars. Study what successful people do and follow their example.
3. Choose to be good with your money. Some people spend for excitement, to show off or to prove they can. Others spend in the hope of finding pleasure or because they are addicted to shopping. Learn to manage your money wisely and become a conscious consumer.
4. Set specific goals. Challenge yourself to eliminate your consumer debt and save a specific percentage of your earnings to invest. Set yourself target dates and amounts. Your goals should be challenging, and believable. They should be just out of reach, but not out of sight.
5. Develop a money management plan. A budget sets out the things you really want and helps you eliminate impulse spending which wastes much of your income. A budget is like a roadmap to your destination. It helps keep you on track. Have one and use it!
6. Reduce your spending. Most self-made millionaires live far below their means. If you want to join their ranks, you have a million powerful reasons to cut your expenses too.
7. Start investing. Invest in things you understand and feel comfortable with. Invest cautiously, wisely and regularly. The objective is not to become rich overnight but over time. Do your homework first so you don’t lose your hard-earned money through poor investment choices.
8. Reinvest your investment returns. Increase your asset base and look for greater returns and better cash flows. Invest according to investment fundamentals, not the tax benefits. Choose investments that put money in your pocket, not ones that require you to keep supporting them because of their negative cash flows. The purpose of investing is to make money – not lose it.
9. Protect your assets. Learn the tax laws and use them to minimise your taxes. Learn how to shield your income and assets and invest in socially responsible ways.
10. Use your wealth wisely. There’s a saying, “what goes around comes around.” Being greedy and selfish will not attract more money to you. Help others and you’ll help yourself. When you use your money to make a difference, to have a positive impact, you’ll have opportunities to do more.