Do you want to be a multi-millionaire?
Multi-millionaire stories are not only for the businessmen, wealthy people, or lotto winners. Employees can also be one. But all big success comes from small things. So if you are working on an 8-5 job and you want to be a multi-millionaire, you should start with the following good “payday habits”:
1.Save First Before You Spend.
Have you experienced urging yourself to save but you ended up with no savings at all? Do you find it difficult to start investing because you have nothing to invest?
Saving after what’s left is difficult since we have a long list of needs and wants. That is why if you want to be a multi-millionaire, you should spend what’s left after deducting your savings. As a rule of thumb, we should keep 20% of our salary. This concept originates from Pareto Rule or the 80/20 rule named after Vilfredo Pareto, which means that 80% of outcomes will come from 20% of inputs. In relation to financial aspect, 80% of your wealth will come from 20% of what you are consistently saving from your income.
But not all your savings should be placed in a bank. Money other than for emergency purposes or short-term goals should be invested in an instrument such as VUL or variable unit linked products which come with a protection, health fund, and stock investment that earns higher than the inflation rate.
2. Spend but not Splurge.
Have you noticed the frequent sale in a nearby mall? Before, it was only mid-year and year-end sale but now there is a sale every month, and for some stores, every cut-off.
Have you seen the latest gadget in various stores? Before, you need to have a big amount of cash or a credit card to buy a gadget. But now, you can avail some of those even in a minimum down payment and you can pay the balance even if you don’t have a credit card.
What are the dominant colors that you see in food logos or restaurant? According to Color Psychology, red and yellow are the chief food colors because these evoke the taste bud and stimulate appetite.
But what do these things mean? Business establishments want you to spend your money. Temptations to splurge are everywhere and as Dave Ramsey says, “If you don’t tell your money where it should go, you’ll end up wondering where it went.”
Spending your hard-earned money is not bad. You work because you need money to pay for your dreams, bills, and pleasures. But the dangerous thing is when you spend it above your means or having unplanned expenditures.
Do your own math. Have a budget.
3.Share and Care.
If you take a look what is the common thing among the famous affluent people- they never forget to share and give.
But you don’t have to wait to become rich before you can give. You can actually start now. According to Jim Rohn, “Only by giving are you able to receive more than you already have.”
Give your family a small treat. Hand a spoonful of ice cream to a child or a dinner for a family living in the street. Never get tired of giving to God’s ministries. Because when we are giving, we are not losing but we are just emptying ourselves for bigger blessings.
Following these three simple steps will not only make you a multi-millionaire years from now but these will also help you learn how to treasure and manage the fruits of your labor.
If you want to become a multi-millionaire someday and you need help to plan your finances, just send me a message at email@example.com and let’s talk about your dreams.
We, your FinancePH advisors, will be glad and more than willing to help you plan your finances. Our customized financial planning approach caters to each individual needs, budgets and priorities.
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ABOUT THE AUTHOR:
Sarah Grace N. Esteban, CPA is a financial advisor at FinancePH and the Director of Publications and Communications of the League of Young Financial Educators (LYFE), a non-profit organization which seek to help young individuals to be financially literate. Aside from her advocacy, she loves to write because she believes in changing the world, one reader at a time. You may reach her through her personal blog www.sarahgraceesteban.com.
If you want her to be your financial advisor contact her at firstname.lastname@example.org
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