In my post entitled, The Greatest Lie Millenials Believe, I emphasized how important money is. I emphasize that it takes precedence when pursuing our goals. Life circumstances has also taught me that it is more important to manage funds wisely than it is to make a lot of money. For, if you make $56,000 per year, but spend $35,000 per year, you are much better off than someone who makes $500,000 per year, but spends $510,000 per year. Saving and managing funds wisely is key.
On my free time, I’ve been reading articles on financial management, stories about billionaires, and other miscellaneous articles on attaining wealth. The tips I’ve obtained from such sources have been so simple; you’d think that everyone should know this, but apparently, they don’t. If they did, I suppose everyone would be wealthy. Here are some tips on obtaining financial wealth.
I’ve never met Warren Buffet, but I’d like to. He always appears so gosh-darn happy on TV! I just want to laugh along with him, even though there is nothing in particular to laugh about. I could tell that even if he weren’t a billionaire, he’d be happy living in his home in Oklahoma and making investments, even if they weren’t lucrative, because that’s what he likes to do. Mr. Buffet enjoys eating at fast food restaurants and reading books, but his favorite thing to do is think.
He’s content with the little as he is with a lot and we should all learn from his strategy. When you’re content with what you have, you’re in a better mindset to achieve more. If you’re not content with little, you won’t be content with a lot, and you’ll never be happy. Why not start your contentment training and be content with where you and with whatever money you make or don’t make. This will increase your chance of reaching your financial goal and helps you have fun along the way.
2. Sacrifice the small so you can attain the big
A few years ago, when I was working and making a hefty salary, I was committed to higher priced brands. For instance, at the retail stores, I would always purchase Palmer’s Coco Butter. I liked how it made my skin feel and believed that no other brand could do for my skin what Palmer’s could do. Palmer’s Coco Butter costs at least $5 for an 8.5 fl oz container. When I was making more money, I was more than happy to pay for my favorite lotion. But when I was unemployed, I realized that $5 was kind of steep for such a small amount of product. One day, I purchased a generic version of Coco Butter for $0.97. I didn’t think it would work, but I figured I’d at least give it a try. Much to my surprise, it still did for my skin what Palmer’s used to do. What a surprise.
The point is you don’t have to buy the best of everything. There are some areas you can cut corners. Perhaps you can purchase a used textbook for school, instead of purchasing a brand new textbook. Perhaps you can learn how to do your own hair instead of paying money to have a beautician style it. I love indulging in high-end hotels, so I’ve found a site the allows me to stay at high-end hotels at a cheaper price.
Sacrificing in small areas leaves you with extra money for emergencies, expensive vacations, or that brand new Michael Kors purse you’ve been eyeing for the last several months.
3. Commit to being a life long learner
The amount money of you make is correlated to how much you know. In the 2010’s this idea is more true now than ever, for technology is streamlining our tasks and eliminating many jobs. In order to stay abreast in your particular field, you must always stay in-the-know.
Invest in yourself. Take courses in new subject areas. Advance your education in an area that you’re interested in. Learn new things. Develop a highly marketable skill. Be your best. These things will ensure that you’re always employable and increases your earning potential.
4. Value your time
I know I’m getting older, because time is a big deal for me. In my early twenties, I used to say “yes” to every dinner invitation I was offered, even if it was with a person I didn’t particularly like. Nowadays, if I’m going to eat dinner with you, I must not only like you, but I must leave your presence feeling inspired and uplifted. Your vibe must be generally positive, not negative. In recent years, I realized how much energy I was devoting to negative relationships. I was experiencing a difficult time, so I started changing the people I spent time with. And boy, what a significant difference! That’s when I realized that if I’m going to achieve my goals, I must spend my time around positive people. I don’t have time for negativity or nonsense. It’s too draining and leaves me without the time to do what I love to do.
5. Live below your means.
My father is an entrepreneur, investor, and all-around business guru. In my teens, he taught me a concept that I didn’t quite understand at the time and that was living below your means. He’d tell me things like, “Many people are millionaires, yet you’ll never know their financial status by their everyday decisions. They’re cheap!”
If anyone understands the concept of keeping their financial prosperity a secret, it’s millionaires. And how do they do it? They do not “wear” their money. They do not spend everything they have on frivolous things like, cars and fancy clothes. Nope. Millionaires save a lot. They may use coupons, or find ways to bargain. They monitor their checking account do avoid miscellaneous charges a lot. They may invest in a good car that’s not overly flashy, or live in a medium-sized, yet comfortable home. They simply find whatever it is that is important to them and spend money on that. They may have $1 million dollars, but they live like they only have $500,000.
Financial tips are pretty simple in theory, but harder to implement. Stay happy; spend your time wisely; commit to a lifetime of learning; and sacrifice in small areas. I’m sure we can all prosper financially.