8 SIMPLE WAYS MILLIONAIRES MANAGE THEIR MONEY THAT MAKE THEM RICHER.
The legendary investor Warren Buffett has this to say about investment - (Never lose money”) is if you don’t understand a business, don’t buy it.
These simple ways would certainly help a whole lot of readers manage their finances properly after reading this article.
Don't be impulsive.
Millionaires don't Act Now and Think Later as the reverse is the case having a habit of thinking through all their decisions. Impulsive people are generally acknowledged as being loud and vibrant, indecisive and carefree. They act on raw emotions.
Know the difference between wants and needs.
The habit or act of spending money towards essential items (office equipment's, machinery) that will continue to increase their wealth is the millionaires focus. Most times we want a new pair of shoes, car, jewelry but the timing might be wrong.
Focus and invest on the long term.
A millionaires long term goal questions are "where do you see yourself in five years time? This entails proper planning and a long range vision.
Have multiple sources of income.
Even the richest people in the world still search for new sources of income to avoid a possible loss of revenue. Most people have only one method to earn money which is their job after which they collect their paycheck, then comes family needs, children then if they get fired, they are distressed.
Active income streams include starting a blog, consulting, event planning, etc.
Always stick to a budget and be strict.
Most times we feel to big to record small expenses.
You can’t follow a budget that doesn’t tell you the truth. If you spend #1000 for lunch, record that in your budget. If you go to the movies and spend #3000, record that in your budget. These small discretionary purchases eat up thousands of Naira of your annual income, and many people don’t realize why they can’t meet their budget goals. The best way to follow a budget is to acknowledge all of your spending so you can see what’s really happening with your money.
Keep Emergency Funds.
Millionaires have a rainy-day fund set aside. They realize that there may be time when they’ll have a crisis, like losing their job or an unexpected family death. Instead of borrowing money, they have the money saved up to support themselves until the crisis is over. Many disasters can be averted by being prepared with an emergency fund. I personally recommend that you have 12 months cash sitting in the bank so that if you hit rock bottom, your shock absorbers are good.
Only invest what in what you understand.
No matter who you are, there is something you are interested in. And no matter what that is, you can translate that interest into valuable trading information.
Perhaps you’re a bookworm, someone who reads every Newspaper or best seller before it actually makes it to the list. If so, you might have caught Harry Potter as it was picked up to be turned into a movie, and invested in Warner Brothers’ parent company, Time Warner .
By focusing our energies on what we know how to do best, we tend to make the best of our situation over time. Also knowing an industry shouldnt be an excuse to avoid doing research into the specifics. Every millionare/investor does Due Diligence checks on the particular industry. Trust me, investing can be risky but fun.
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