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Six Smart Financial Moves for Future Millionaires

Whether your goal is to become a millionaire by a certain age or to save a set amount of money so that you can retire early, the way to get there is deceptively simple. Save more, spend less. It sounds easy, but if it were easy then everyone would do it. Here are a few tips on how to build your wealth.

6 Smart Financial Moves to Become a Millionaire

1. Clearly Define Your Goals

When you decide to start getting serious about saving money, it is a good idea to have a set of goals in mind as well as a plan for how to reach them. Think about writing down a business plan of sorts, with a timeline, goals, and small clearly defined actions that will allow you to reach those goals. It is very important to be clear about what you are trying to accomplish, whether it is retiring early with a set amount of money in the bank, saving money for your children’s future, or something else.

2. Pay Yourself First

With any income you receive, whether from your full-time job or a side hustle, pay yourself before spending money on anything else. This means to put money towards savings before you start spending your income. Some people put a set amount into savings every month, and those that have a more variable income will sometimes save a set percentage of their income towards retirement, other investments, emergency fund savings, or college savings funds.

3. Have a Side Hustle or Two

Frugal Millionaires know that while having a full-time job is a great source of income, you are not limited by your FT salary. You can always start working on the side to increase your income, and if you’ve already been living on your full-time salary alone then you can devote your side hustle income entirely to meeting your financial goals faster.

My side hustle is blogging (learn how to start your own profitable blog here!). This month, I’m on track to make close to $700, and I spent maybe 8 hours this month blogging! It took some time to build up an audience and create posts, but now my income is steady and dare I say…passive? Which leads to the next point…

4. Set Up Passive Income Streams

Passive income is money that you earn without having to do very much for it after an initial output of effort. Something like writing an eBook and self-publishing through Amazon, designing and selling a course on Udemy, or even simply selling t-shirts and stickers with a logo you designed are all ways to earn passive income.

5. Always Have Insurance

Frugal millionaires like to cut costs in order to put more money towards their financial goals, but having proper insurance will save you money if you are ever in the position of needing to use it, and is not a smart way to cut costs. Renter’s or homeowner’s insurance, good car insurance, life insurance, and health insurance are all important and well worth the cost. Visit this link to learn more.

6. Maximize Your Tax Breaks

Never pay more in taxes than you are legally required to. This means fully funding your IRA and any other pre-tax retirement accounts you have, investigating whether you should itemize your deductions or take the standard deduction, and following any other advice your accountant provides you.

Through setting clear goals, increasing your earning and saving while minimizing your effort, and protecting yourself from financial catastrophe, you should be able to meet your savings goals. With common sense and determination, you can be a millionaire.

/ Filed In: Investing, Rich, Saving Money
Tagged: financial goals, investments, making money, rich, saving money

Where Do Millionaires Invest Their Money?

millionaires investThere are some distinct characteristics that set millionaires apart from the everyday person. While the majority of millionaires are actually self-made, meaning they didn’t receive it through an inheritance, a whopping two-thirds of them are entrepreneurs, according to the Economist. Millionaires also tend to live below their means, they’re natural leaders, and they focus on investing their money rather than spending it.

Today, we’re focusing on that last point and figuring out just where millionaires invest their money.

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/ Filed In: Investing
Tagged: investing, investments

Stock progress

I recently did a post on what stocks we bought. Quick recap – we purchased Verifone Systems, Deck Outdoor, Walmart, Realty Income and Starbucks. John and I set goals as to when we would sell and watched the market closely.

Two days ago, we sold Walmart and Deck Outdoor. Continue reading for our profits…

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/ Filed In: Investing
Tagged: investing, investments, making money, stocks

The secret to getting rich

secret to getting richWhile we all know there are many ways to get rich (including inheriting the money, winning the lottery, earning a high income and saving saving saving, living way below your means, etc.), there really is only ONE, SUREFIRE way to actually accumulate wealth. This is something everyone can do, everyone can learn and everyone can benefit from. While you may lose money in the process, you can’t get rich by playing it safe.

I’m a believer in being either all-in or all-out. I don’t really do things “half way.” This includes everything from working to being a mom to saving money to making decisions (I’ve said before I make decisions very fast). I’m on a quest to become a millionaire and while I know I could play it safe by working hard and saving my money, the reality is if I go that route, I won’t be a millionaire until I’m retired (at no earlier than age 65, of course). I would much rather be a millionaire while I’m young. I want to take risks, see my money grow, make my money start working for me, be able to enjoy traveling with my girls while I’m still young, be able to donate, etc.

So how am I planning on doing this?!

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/ Filed In: Investing
Tagged: investing, investments, making money

What stocks to buy now

stocksfallI mentioned earlier how we are getting involved with investing. So far, we have a Synchrony high yield savings account, two mutual funds ($5000 total), my husband’s rollover IRA account and we just invested $7,500 in stocks. Since we’re newbies, it was hard coming up with what stocks to buy now that would make us a profit.

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/ Filed In: Investing
Tagged: investing, investments, stocks

How to start investing

investingInvesting is something that both John and I are rather new to. Other than our company 401K plans, we’ve never invested any of our money. We’ve always saved and set goals, but when it comes to taking risks with our money? Nope. Not gonna happen. Recently, our mentality has completely changed. We want to take risks, we want to learn about stocks, mutual funds, REITs and dividends, we want to generate passive income streams, we want to see our money grow, we want our money to start making us money. We want to start investing. In other words, we want to be rich 🙂

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/ Filed In: Investing
Tagged: investing, investments, making money, stocks

High yield savings accounts

high yield savingsJohn and I opened our first high yield savings account this past week! After some research, we went with Synchrony Bank. No fees (as long as your balance is over $50) and a 0.95% APY, this is definitely something I wanted to get on board with.

We deposited $20K to start, and if we never add to it, we’ll make about $200 per year. Not much, but quite frankly that’s MUCH better than the interest rate of a regular savings account (.01%).

I plan on tracking our progress and updating the blog to let you know how much we’re contributing. As of right now, we don’t plan on adding a set monthly amount. With my husband just starting his own business, we’re not quite sure what he’s going to be taking in per month and what we’re going to be able to save. The goal would be to contribute $500 per month minimum, but of course we’ll have to wait and see if that’s possible.

This is probably the easiest passive income stream to exist. While the returns aren’t great, there’s zero risk involved! I highly recommend moving your savings account or emergency fund into a high yield savings account (and no, I was not compensated to say that!!).

Do you have a high yield savings? Any tips? I’d love to know!!

/ Filed In: Saving Money
Tagged: high yield savings, investments, saving money

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