A study by a financial institution determined that the reason many people are not millionaires is because they have bad money habits. The way they handle their finances is backwards. Many distribute their salary badly: Instead of saving first, they pay and spend first. Anyone can invest money for when they retire, but very few do because after paying bills and buying what they need, they have nothing left. If you're one of these persons, follow these steps to save more and spend wisely.
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1. Think like a millionaire. Open a savings and investments account. Make sure the amount of money you deposit monthly is in accordance with your salary. Even if your salary is committed to bills and the new things you need, put aside your investment money. Stop saying you're going to save when you get a raise because normally with raises expenses also increase. Start saving a small but steady amount.
2. Imagine the goal. As if you were a professional athlete, imagine where you want to get. We must have a clear goal to help ourselves save. Incentives, like having six months' salary under the mattress for medical emergencies, saving for college or to buy a house always help create the habit of saving. They also make new hardships easier to bear.
3. Appearances are deceiving. Some millionaires live in mansions and drive collector cars but some not. As for their daily activities, millionaires do not spend but save. How many times have you received a good gift for someone with a lot of money? Many millionaires live "humbly" and keep watching what they spend. All of them have a monthly budget and know what their spending limit is when they buy. The vast majority of American millionaires made their fortunes living below their means.
4. Money comes and goes. It seems trivial, but many people don't know it. They have the bad habit of neither reviewing their monthly checks nor balancing their bank accounts. If you don't know how much you have, you will not be able to create a budget to save. You'll be surprised when you see how much money you spent on fast food during the month. The small purchases of $20 are the ones that make a dent in your finances because they are easy to spend, but very difficult to save.
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