The process of making money requires deliberate efforts. Luckily, we have some financial advice from millionaires who already have experience.
The right financial advice is the best way for anyone to join the rank of millionaires. Regardless of what your income level is, there is an ever-present need to make very smart financial decisions. This is one of the best ways to ensure bankruptcy is avoided. However, apart from simply avoiding bankruptcy, there’s a need to avoid stagnancy.
Making sure that money doesn’t run out will never be enough. You have to take deliberate steps and make conscious efforts to ensure that there is financial growth. All of the world’s richest people got where they are today by being financially deliberate. The steps to take are very simple and may not always require special financial knowledge. But if you’re looking for financial advice, here are a few from 5 millionaires you should probably emulate.
Save Consistently
The CEO of California-based jewelry company Tiny Devotions Lin Sun advises that choosing a percentage of your monthly income to spend is wise. Once that is deducted, you have to be disciplined enough to put the rest away. The general rule of thumb here is to always have something set aside for the rainy day. Sun says this much discipline shouldn’t be seen as crippling. She noted:
“That doesn’t mean we live in scarcity; we enjoy our lives while managing resources.”
Self-Investment
Grant Cardone, who controls a $750 million real estate firm called Cardone Capital believes that savings are not enough. Some of the money should be channeled into other investment channels, including self-investment.
“Don’t leave your money sitting in the bank to depreciate. Put it to work with investments that have the potential to appreciate and will give you consistent cash flow.”
In addition to this, Cardone believes that everyone should spend their money on investing in themselves, to learn and update money-making skills.
Keep Track of Your Finances
AccountingDepartment.com co-founder Dennis Najjar believes that proper accountability to your own self is one of the keys to financial success. Everyone needs to put some measures in place that ensures financial tracking is accurate and seamless. The major reason why this is necessary is to make sure that you can check yourself whenever you are overspending. Keeping track can also help you make an accurate forecast of the next couple of weeks, months, or even the entire 2020.
Najjar also says it is necessary to set up “checkpoint intervals” on a weekly or monthly basis to review your general performance.
Learn the Fine Points of Finance
SilkFred CEO Emma Watkinson wants to make sure that her entire staff learns all of the fine points that affect finances. These metrics help people to understand financial goals a lot better and will help the long road to actualizing these goals. They could include customer retention rates, spending and income trajectory and even the relationship between marketing expenditure and sales. Understanding these things help make better financial decisions.
Be Generous
Many people, including Kuda Biza, believe that generosity is always a great idea. The co-founder of cookie company Nunbelievable says that “the secret to living your fullest life is giving.” According to him, all the financial security and fortitude in the world is next to meaningless if you’re not grateful and also helping others.
Today, Biza says that Nunbelievable donates two meals to the fight against hunger, for every time the company sells twelve cookies. To him, giving is also good business.
“We all have the power to touch others’ lives, extend gratitude and live more abundantly. Here’s to a new decade of giving more than we spend”, said he.