Five simple, but not easy, steps
If becoming a millionaire was easy, everyone would become one. Its the same as with becoming professional athletes or experts in any given field. Getting into the top tier in anything requires determination and persistence as well as clear vision of your goals and dreams. And we are well aware how corny all of this sounds, but as Chris Hogan, author of the book "Everyday Millionaire" showed, these simple, but not easy, steps can lead to a vast improvement of your financial situation that can even lead to becoming a millionaire. What exactly are these steps? More important question though is, what is the relationship of these everyday millionaires towards their money? What do they do and others do not?
1.Have a plan
Everyday millionaires have their plans when it comes to money. They use all the means necessary to increase their wealth over time mostly through passive income. For instance they know how they can use 401k or 403b (this is mostly concerned about US investors). But it can be applied to anyone, since this point simply means that you have to be in charge of your money and have to know where is it that you want to go in the financial sphere.
2.Spend less
Extremely important point especially in this world full of unnecessary consumption. Spending less than earning means that you are not only not living out of debt, but also that you might be able to put some money aside (ideally invest), which can by itself lead to a passive income over time. According to the findings of Chris Hogan, 94 % of millionaires live on less than they make. The message here is clear.
3.Look for deals
Probably the most surprising point, but even millionaires look for deals. They use coupons or sales to get stuff that they need for less money. And why would not they? It is not like it is shameful to be spending less than you actually could on some stuff in stores. Financially, this decision is really smart and can give you a chance to put aside more money.
4.Make a budget
One of the more difficult points for sure, but it is without any doubt crucial. Knowing how much you spent last month or how much you can spend next month gives you a chance to know how much you can invest and grow your portfolio of financial assets. Without budget, which will lead to awareness in your spending, it is very difficult to improve your financial situation.
5.Stay in control
Making a budget is not enough though. Staying in line with your budget is. Doing the thing that you said you are going to do is important not only to show selfcontrol and selfawareness, but it can also make you believe that you are the one, who is in charge of your own destiny. And this is obviously very true, and according to Chris Hogan, 97 % of everyday millionaires do believe that as well.
Do you find all of these points fascinating and you want to learn more? Feel free to check this video at CNBC, where you can find more information about each of the five habits of everyday millionaires.
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