This ain’t no schmoozing about “get rich fast and retire young”-type of bs. Believe it or not, building wealth is nothing more than a habit, a certain framework you follow to accumulate riches. What’s more, it’s not even that hard to follow if you get your act together and start thinking money-wise.
All of the proposed actions are verified strategic choices of people who turned millionaires from naught. I promise you won’t sacrifice anything or even break a sweat incorporating most of them, if not all, into your daily life.
This might even be FUN to try! So let’s roll up sleeves and start.
Unsubscribe from the clutter
I promised to go easy on you, but this one is trickier than you might think. Today, we’re getting accustomed to being bombarded by ads shouting at us offering stellar discounts on useless junk we don’t need. Too accustomed, perhaps.
Free up your mental energy and save yourself from craving more stuff. Go to your email and unsubscribe from all the stores right now. You’ll feel so much better after this one’s done.
Set up a spending tracking tool
If you want to be money-wise, it crucial to have a whole picture of how you’re spending your money. This allows to estimate which expenses to cut and where you can/should afford to spend more. Self-education, for example, is almost always underfinanced category that pays off in 100% of cases.
There are many apps to help you control your budget and organize your expenses. After you have enough data on your spendings you should routinely review your monthly report and draw out every HALT spendings - the ones associated with you being Hungry, Angry, Lonely, Tired - to avoid them in the future.
Acquire effective budgeting habits with GrowApp to gain financial freedom
Cut your "emotional" spendings
Items that we sometimes buy out of impulse can be subtle in how they sell themselves. You might even think that it's perfectly rational for you to want that new piece of clothes because you had a tough day. That's all fine, but items only fake the sense of happiness, instead they give you only a temporary relief, a kind of high, but they don't mean anything at all. Everything worthy of having cannot be bought.
To cut on these spendings you only need to replicate the step from the previous actions - draw out every HALT spendings (Hungry, Angry, Lonely, Tired) and create a ban list on them.
Stop thinking linear about money
Most people think about money in linear terms trading their time-work into money. They think their profits are directly connected to time. They believe that the only way to make more is to spend more of their time working for it.
Successful people have more non-linear approach - they know exactly that big money can happen very quickly. Riches aren’t timebound, they are generated through ideas that solve problems. The current population explosion created an unprecedented amount of problems that can be solved for profit. It’s all about the right idea at the right time.
Request your free credit report
This downright easy action can serve you a good lesson and help you cut down on your unnecessary spendings. You're entitled to one free copy of your credit report every 12 months from each of the three nationwide credit reporting companies. Your credit history is important for lenders, insurers, and employers.
Order it now from annualcreditreport.com then draw out every HALT spendings.
Find unclaimed cash
If the government owes you money and you do not collect it, then it's unclaimed. This also applies to banks, credit unions, pensions, and other sources. Currently, the government does not have one central website for finding unclaimed money by name, Social Security number, or state. To find unclaimed money from the government, start with your state.
Visit unclaimed.org and search by your state and check if there's unclaimed property on your name.
Make a saving plan for a strategic purchase
The key to your financial well-being lies in but a few basic well-known principles, one of which is strategizing your purchases. But first, you have to ask yourself: what this property/items will help you achieve? Will it improve your lifestyle?
List savings as a fixed item in your budget plan. Specify what's it for (self-education, project you want to start, etc.). Set a realistic date when you want this purchase. Make it a habit to reassess the need for every purchase you make or plan to make.
Getting rich takes more patience than effort. Remember this and start saving now. It's never too late, but it's best if you start earlier on. If you want to save a portion of your after-tax income, you can connect multiple accounts to your direct deposit and designate how much money from every paycheck will move into each account. Plus it takes virtually no time.
Set a regular deposit into your saving account. Save your tax refund, and pledge to do so every year. If your employer offers direct deposit, ask if they will accept multiple deposit accounts. If they will, put some in savings and some in checking. If they won’t, set up a recurrent transfer on your payday.
Use easy-to-follow budgeting rules in GrowApp for financial stability
Start investing, not just saving money
Ok, so you’re making enough money and you’re able to save 20% of your monthly income. Think that’s smart? Think again.
There’s a huge difference between saving money and investing in growth assets.
Being defensive about money isn’t money-wise. Willing to invest your time, money and energy in educating yourself where to make more with what you have is.
Attend a free event or activity
Free events are a great way to socialize, meet new people, make new connections, and eat and drink for free. Oh, and learning new things, of course, and visiting somewhere new. All of which strongly engages the novelty center in your brain which has strong physiological effects: increase dopamine and endorphin levels making you more happy and active.
1. Check which workshops and free training related to your occupation are available.
2. Also check with museums, art galleries, theatres, and points of interest near you.
Create a list of all strategic purchases for a year
If the item or property you want to acquire fits all the bells and whistles under HALT principle (not buying anything related to you being Hungry, Angry, Lonely, Tired) make a list of such items and think about a strategic purchasing yearly plan. An actionable purchasing plan can save up to 50% of your total yearly budget cutting down on impulsive purchases and bad long-term investments.
Make a list of absolutely necessary things that will a) make you better/more productive b) serve for a long time and c) be good long-term investments. Include prices and scale their necessity 1 to 10.
Use 50/30/20 budgeting rule
Put 50% of your monthly income toward necessities, such as rent and groceries. 20% should be diverted to the retirement plan, paying off credits, etc. (maintain your credit score). Hooray, you still got 30% to spend on your "wants": shopping around, dining out, latte addiction, contemp dancing masterclasses, gym membership, and shoe collection.
Draft your financial goal vision board
Draw a timeline and if, for example, you want a raise by the end of this year, make a note about it on the timeline. Pin pictures representing your financial goals, items or property that you're strategically planning to acquire in the future. Once you have a visual representation of your course it becomes more real.
Say "no" to one needless thing you buy
Analyze your monthly spending report. Search for the regular purchases that don't make your life better (cigarettes, cans of sweetened water, chewing gums, etc. Be bold and eradicate this one thing from your life for good. Promise you won’t feel bad after it’s gone.
Sell useless stuff and save money
Decluttering your space while making money from it is a win-win. Don't be a hoarder. Psychologists recommend never to attach yourself to anything material and focus or relationships in your life, not the stuff you buy (and update every fall). When it comes to personal items and things, we usually need as much as could be put in a compact bag.
Find and follow "Garage sales" groups in social networks
Go to the Facebook search box and type in "garage sale", "yard sale", "buy-sell", "garage sale group", etc. Pick groups from your city or country and join them. Follow the list of acceptable items (group conditions and so forth), and try to sell something small for a start. Take good pictures and describe the stuff in detail. Don’t forget to conduct price negotiations to get the best deal.
Be happy with what you already have
Healthy ambitions are one thing, inflated ego is another. The first motivates you to step out of own limits and dedicate yourself to higher goals. The other leads only to frustration.
Ego is always comparing you to other people, making you feel either inferior or superior. This rollercoaster of highs and lows is a vicious circle of negative emotions like envy and contempt that separates you from people.
For that reason, it’s impossible to be wealthy without feeling that you already wealthy as it is. Get rid of a childish thoughts like “when I’m rich, I’ll buy this and that and finally be happy.” Take successful people words for that - you just won’t.
If your obsession with getting rich makes you miserable right now, it will continue to do so no matter how your financial situation changes.
Express gratitude for what you already have, and see that there’s a lot to be grateful for.