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Building wealth is about discipline, risk, and tough choices. People who are financially successful, like millionaires, often didn’t get to where they are by inheriting wealth or winning the lottery. Here are a few habits millionaires practice you can start doing today that will help you get your finances under control.
#1 Don’t Live Large
Millionaires remain millionaires by living within their means. Although they could afford mansions, nice cars, and extravagant living, financially-stable millionaires stay that way by being wise and frugal with their resources, not by going bonkers with their abundance of spending money.
#2 Spend Wisely
Think before you spend. Wealthy people who stay wealthy think about purchases and plan for them. Though they may have a net worth way larger than yours, they haven’t abandoned this basic practice of budgeting. They know where their money is going. You need to know where your money is going.
#3 Have Goals and Stick to Them
Where do you want to be financially six months from now? Two years from now? Set monthly, yearly, and long-term financial goals. This will help you judge how you should be spending your money today and what sacrifices you need to make in order to reach your financial goals this year, next year, and for the rest of your life.
#4 Drive Used Cars
Many millionaires drive cars that are two years old or older. They realize that new cars lose 60% of their value within the first four years of ownership. A new car looks great and drives beautifully, but financially speaking, it’s a bad investment!
Be thoughtful about where you invest your money. Cool stuff that causes you to lose money in the long-term isn’t worth it when you’re trying to get out of debt and gain financial stability.
#5 Invest Wisely
You want your money to grow. After you have established an emergency fund and are out of debt, invest 15% of your income into your retirement fund. Fight the temptation to live large today, and you’ll have a lot more money when you’re older.
#6 Be Content, Be Financially Stable
A lot of wealthy people are happy and content because they are givers who truly enjoy life, and a big way they got wealthy in the first place was by being content and satisfied with their lives. They didn’t throw away their money on fast living or the next big thing to fulfill an emotional void. Their contentedness gave them the freedom to realize that a life of true meaning, joy, and purpose can never be attained through money alone – though money can certainly help in other ways.
You might not ever become a millionaire, but you can become more financially stable by implementing some of these millionaire habits into your life today.