Photo: D@LY3D
Admit it, you’ve had a millionaire fantasy. We all have. We have all imagined ourselves jet-setting around the globe and spending our weekends in exclusive and exotic locations, dripping in designer jewellery and owning countless breathtaking properties. Sounds perfect, right? Well think twice because becoming a millionaire will by no means solve all of your life’s problems and contrary to popular belief, becoming a millionaire won’t even solve your financial woes.
‘The harder I work the luckier I get’ – Samuel Goldwyn.
Millionaires aren’t lucky, they have to work hard to survive at the top and maintain their financial position. And so when it comes to managing their money, millionaires tend to be more inclined to embrace frugality as opposed to being impulsive with their heavy lump of dough. Here are 6 lessons we oughta take out of the millionaire’s book:
Budget
Just like us, millionaires do not have a limitless supply of money and shock horror, they have to pay their bills too! That’s why not even a millionaire can get away without implementing a budget. It’s the best financial tool for anyone and everyone, regardless of how much is in your bank account. Choose a system, the system works best for you, and most importantly stick to it.
Prepare for emergency
Sometimes things don’t always go to the financial plan and so that’s why many millionaires keep an emergency fund. And so should you. It may seem unlikely but it’s not impossible for you to end up flat broke and sleeping on a park bench and so when it comes to finances, it’s always best to prepare for the worst.
Look before you leap
As mentioned earlier, the millionaire typically doesn’t like to be impulsive and so when it comes to financial products such as financial planning or insurance services the millionaire looks carefully and takes time to compare, compare and compare some more!
Watch Out!
…for fees that is. Fees are cheeky little things and little they are. They can only be a dollar or two here and there but if you don’t keep an eye on them they can certainly build up to a whole lot over time. Don’t waste your money unnecessarily; avoid fees like the plague!
Slow and steady wins the race
Whilst getting rich overnight can be a one heck of a thrill, growing wealth slowly is the more desirable option for the millionaire. Invest slowly and wisely, avoid risk and endeavour to preserve what wealth you already have.
Live Simply
Believe it or not, but many millionaires tend to live below their means. A great example of this is dot.com millionaire Rik Wehbring from San Francisco who, despite his immense wealth, chooses to live on just $50, 000 a year. Furthermore, in a study based on interviews with 70 millionaires it was found that many millionaires prefer the simple life. The participants involved in the millionaire study reported buying fuel efficient cars that keep longer, eating the majority of their meals at home as well as buying their clothes in off-season and purchasing low-end electronics. They sound just like the rest of us, yeah?
So there you have it, when it comes to money management, millionaires aren’t so different from the rest of us after all. In order to maintain their position at the top and avoid the dreaded status of bankruptcy they tend to watch their every dollar and cent, budget, live frugally and avoid financial risk just as we do.
