Ever wonder how that guy down the street became an everyday millionaire on his salary? Sure, he drives an older Chevy instead of the new BMW, but some basics helped him get where he is today. Here are some basic principles that will help you jumpstart your finances.
Spend less than you earn. This is the most basic and fundamental rule in finance. Win here, and you will win with your present and your future. It doesn’t matter how much you earn, but if you learn early to harness expenses and put together a plan when your income increases, you will already have the tools, skills and habits to carry you far.
Invest early, regardless of your income. Honestly, you can’t afford not to invest. Yes, that’s a double negative, and my English teacher would cringe, but you get the point. It doesn’t matter whether it’s $5 a week or month or $50 of $500. Start where you are and let compound interest become your silent partner.
Don’t focus on making more money. What, you say? Too often, we focus on making more money to offset the financial problems without changing the bad habits and tendencies that got us into a bind in the first place. Sorry, your problems and bad money habits will follow you to the next level of income. You’ll be seeking more income again in short order. First thing first: Fix the bad habits, learn the basics of finance, then turn your attention to increasing income.
“Making more money will not solve your problems
if cash flow management is your problem.” – Robert Kiyosaki.
Forget the Joneses. They’re broke anyway. Stop comparing yourself to others. The one-upmanship game will kill you. The Joneses — and many others — just put lipstick on that pig to fool everyone anyway. Stay in your own lane, and don’t become someone you aren’t.
Get on a budget. There’s that ugly four-letter word again. Frankly, it can be the most freeing thing in your life. There is nothing like a plan that works, but the plan is where it starts. Don’t know how to set up your budget? We’re happy to help.
Winning with money isn’t rocket science. But it does require a plan and discipline — one step at a time.