Best Money Tips from Self-Made Millionaires and Billionaires

By Dominica

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Last Updated: June 21, 2021

Although not all of us will become billionaires – or even millionaires – there are things we can do to set us up for financial success. The first and perhaps most important step you need to take towards becoming financially secure is to save. 

Saving your money can be the difference between a stress-free or a stressful life. However, this is easier said than done. Roughly 80% of Americans are in some type of debt, according to financial experts. Furthermore, the average amount of American debt is just under $40,000. 

According to English poet, Percy Bysshe Shelley, “the rich get richer, and the poor get poorer.” If that is the case, shouldn’t we listen to and take advice from those who have managed to beat the odds?

Below are some of the best money secrets given by self-made million and billionaires:

 

  1.     Figure out your Financial Goal and Work Backwards 

The first step in becoming wealthy is to have a goal to work towards. Having a goal also requires having an action plan to make that goal a reality. One millionaire, Brian Lim, states that you need to work backward when thinking about saving. This means coming up with a goal in your head and then breaking it down to see how much money you would need to earn to hit that mark. This strategy allows you to break down the process and find the easiest method of achieving it.

 

  1.     Use Cash 

In today’s world, it is less common to pay for things using cash. Debit and credit cards are the new and most popular currencies. However, using plastic isn’t going to help you reach your financial goals. The rich are rich because of the hyper-attention they give to their cash inflow and outflow.

By using cash, you don’t have to continuously look at your bank account nor factor in the money that you’ve spent but hasn’t yet been taken out. With cash, you know exactly what you can and cannot afford. Setting up a savings system (such as using an envelope or jar) can help you manage your lifestyle while working to attain your goals at the same time.

 

  1.     Adopt, don’t Shop

This means buy used over new. A lot of the time, people are paying for the brand rather than the actual product and wasting a lot of money because of this. Just because you have enough money for something doesn’t mean you need to buy it. 

For example, instead of paying $35,000 for a brand-new Kia Sportage, look for a dealership that sells them Used-New and get it for $20,000. Or that pair of brand-name jeans that sells for $150 you can skip and buy a less popular brand for $50. Financial dieting is a smart way to save money and buying used instead of new is part of that.

There are wonderful apps these days for finding excellent used material goods.  Try Facebook Marketplace, eBay, or NextDoor app for starters.

 

  1.     Have more than One Source of Income 

One of the most sure-fire ways of becoming wealthy is to have multiple streams of income. Having more than one source of income assures that the cash won’t stop rolling in. Even if your income comes to a halt within one job/hustle, you have one or multiple others to rely on. A group of self-made millionaires were studied over five years; it was revealed that most of them had several sources of income ranging from real estate to blogging.

 

  1.     Invest in your Future 

Investing in your future is more important than most people initially think – especially if you are young. One of the best ways to assure that you will be financially stable and even successful in the future is to start investing in your retirement fund. You will want to do this as early as possible. 

The idea of a retirement package can be daunting, particularly if that is far off or you have a lot of current expenses, but putting money aside now will save you from a financial headache in the long run. Find a plan that works best for you and contribute a little bit of money to it each month. 

 

The Real World And Money

In an ideal world, money wouldn’t be something causing us stress, anxiety, worry, etc. While we don’t live in an ideal world, money doesn’t have to be something that causes burdens. Implementing the money tips from above into your lifestyle can provide you with the opportunity to make more and worry less.

I encourage you to follow in the footsteps of those who came and succeeded before you. Your future self will thank you.

 

Photo by Liza Summer from Pexels

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