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10 Pieces Of Worthwhile Advice On Saving From People Like You Who Made A Fortune

Find out what worked for these ten average-joes to become financially independent, and retire at an early age.

Nicole Crampton

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It’s time to save money for your future

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Look ahead to begin your saving

Many aspiring entrepreneurs dream of starting a business with a small sum, to turn into a million-rand juggernaut. After all, every business has to start somewhere. If you’re looking for advice or inspiration, there are plenty of entrepreneurs out there who have turned themselves into household names while achieving their financial dreams.

Is saving easy money? From a distance, it appears to be. But, when it comes down to it, it’s challenging especially when starting with a low amount.

The first question you need to ask is how to start, because most of the time starting is the hardest part about saving for any goal.

Here are ten pieces of worthwhile advice on saving from people like you who made a fortune:

Consider every purchase in terms of cost per hour

expensive-purchase

Luxury items got a hold on you?

Having the discipline to save 70% of your income, could seem impossible, especially considering that the prices of basic needs like bread and milk keep rising. But, that’s exactly what JP Livingston did to be able to quit her job at 28 – with USD2 million in the bank.

Her top piece of money-saving advice comes down to a shift in mind-set: Don’t take prices at face value, but consider them in the context of how many hours of work it would cost, a strategy she picked up from Vicki Robin and Joe Dominguez’s book, Your Money or Your Life.

“If you think about how much you earn and you divide it by the number of hours you work, you get the amount of money per life unit,” explains Livingston. For example, if your cost per hour is R100. That means it would take you 20 hours of worth of work to afford your R2000 worth of groceries, which certainly puts things into perspective, doesn’t it?

The advice

“If you think of things as not just what you save that day, but having that money work for you and compound, it will totally change the way you spend money,” she continues.

Related: How To Start Saving Money Today

Pay off your debt

pay-off-debt

Don’t let your debt collect…

“People who have a lot of debt and loans don’t have the cash flow to save in the first place,” says Scott Wellens, founder of FortressPlanningGroup and host of the “Best in Wealth” podcast.

He continues to advise that if you have debt, you’ll end up paying interest to the credit companies instead of earning interest on your savings.

The advice

“The best way to start saving money is to get out of debt as quickly as possible and have the discipline to stay out of debt. You will be surprised at how much money can be saved on a monthly basis if you kick debt out of your life,” he advises.

Invest in your future by paying off your debts; this is a guaranteed return on investment because you’ll have more flexibility with your financial decisions.You’ll know what to expect and, as you pay off each debt, you’ll have more money to achieve your financial goals with.

Track your expenses

track-your-expenses

Watch what you spend

You need to have a clear view of your accounts, how much you earn and how much you spend on expenses.

“Too many adults do not have an accurate view of their income and expenses,” says Bily Xiao engineer-turned-advisor and founder of WealthMobius.com.

He says that if you measure your income, you can improve it. “So start tracking, take stock of how much you’re saving, identify low-hanging fruit of expenses you can cut, and start setting some incremental goals to increase your saving. Make use of great tools like Mint.com (syncs with your financial accounts) or YouNeedABudget.com (more manual and private) for tracking,” he explains.

The advice

Do the math and figure out which deal is truly the best for your finances in the long run. Not only will this technique help you to save money, but you’ll be able to reduce the amount of interest you earn paying items off each month.

Related: What You Need To Start Saving Each Month In Your 20s To Retire With R5 million

Keep a careful eye on your savings

savings-pocket

Put something away every month

Kristy and Bryce Shen were able to save USD1 million by age 31. They quit their jobs as computer engineers to travel the work, thanks to a diligent habit of tracking their money. “I think tracking is absolutely paramount,” says Shen. “That’s one of the things that would help people a lot financially.”

The advice

“Even if you blow the budget once or twice, it’s not a big deal. Everybody makes mistakes. I made mistakes, too,” explains Shen. “Being able to track it allows you to see: ‘Hey, look! I’m going in the wrong direction. It’s not going towards my financial goal.’ So then you just move back toward the right path, and then you’re good to go.”

Don’t lose your happiness to saving

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Don’t make unnecessary sacrifices

When embarking on this goal don’t forget to live your life. Yes you want to achieve your goals, but you don’t want to make yourself miserable while doing it. “I went so hard-core that I made myself really unhappy during the process,” says Mad Fientist during an episode of his “Financial Independence Podcast.”

He kept a meticulous spreadsheet, which helped him to organise and monitor his spending, investments, and net worth, while saving 70% of his after-tax income.

The advice

Yes, you have to be patient, determined and persistent, but avoid becoming consumed with saving that it isolates you.

“I just didn’t want to do anything that involved spending money,” he says. “I just wanted to get there as soon as possible.”

He advises that you need to focus on the power that you’re receiving along the way with the money you’re saving up. Use that power to make your life better along the way. “Don’t sacrifice happiness for that final number in the bank,” he advises.

Related: 8 Rules To Build Wealth When You Weren’t Born Into Money

Optimise your earnings

Optimise your earnings

Earn as much as possible

The key to building wealth is optimising your earnings says Chad Carson, who lives off passive income from 90 rental properties. “Particularly in your first 10 years, if you make mistakes of buying emotionally on your residence as opposed to buying in a very calculated manner by making your residence a house-hack or a live-and-flip, or just renting and investing that somewhere else, the magnitude of that mistake is huge 20 to 30 years from now,” explains Carson.

The advice

Carson lived in one room while renting the other rooms of a property to cover the bond repayments. With his costs covered he used his salary to build a nest egg and buy more rental properties in his hometown of South Carolina.

Now, he spends just three to five hours a week managing his rentals from Ecuador, where he lives with his family.

Automate your savings

automatic-savings

It’s gone before you can spend it

When trying to save seeing that money in your account can be tempting, but if you create a debit order from your account to an investment account you can save every month without being tempted.

“Determine how much you can afford to save each week or month based on your personal income and spending,” says Jamie Pomeroy, Financial Advisor at Merchants Bank.

The advice

“Once you have established a budget and have clear short- and long-term goals, one easy way to get in the habit of saving money toward those goals, is to simply automate it. Set up regular and automatic deposits into your investment and savings accounts,” Pomeroy explains.

Related: 10 Money Habits That Will Help You Get Serious About Prosperity

Re-acquaint yourself with being frugal and develop a side business

develop a side business

Be the frugal one

Joe and Ali Olson now spend their days traveling around the world with their 1 year-old daughter. They were both public school teachers, and they were able to quit their jobs with USD1 million in the bank, retiring after just eight years in the workforce.

They started out by buying properties for a steep discount. They initially lost money, but when the market turned they began turning a profit. By the time they quit their jobs they owned 15 properties.

The advice

They managed to live on USD20 000 a year without any major sacrifices. But even as they saved, their lifestyle didn’t succumb to inflation. They continued to save 75% of their income and resided in their 37- square-meter home. “We cultivated a concept of gratitude about everything,” Ali said. “And once you’re grateful for everything you have, to try to get more seems silly.”

Embrace the challenge

challenge

Be financially independent

Peter and Simi Adeney were both software engineers. They stashed two-thirds of their combined USD134 000 take-home pay in savings. After 10 years they had USD600 000 in investments and paid for a house worth USD200 000.

But the road to financial independence isn’t easy. In fact, it’s loaded with challenges.

The advice

“What it boils down to is enjoying hardship and practicing voluntary hardship every day,” reveals Adeney.

“We’re trained in this country to avoid difficult stuff. And so that’s the first thing I think you need to get rid of if you want to get anywhere that’s different from the other people.”

He continues to say that even if you’re just starting out, cutting down on the extravagant purchases makes the whole process efficient. “Suddenly, you can earn more money and you can spend less money because you engage in this quest to make your life better, which happens to involve doing difficult stuff.”

Related: 12 Mega Money-Savvy Tips To Make You a Millionaire Before 30

What are you waiting for?

starting-to-save

Start today

Between, Justin McCurry and his wife they managed to save up over USD1 million in nine years. Their net worth continues to grow thanks to their investments and currently sits at USD1.7 million.

“When you’re still young, how you save doesn’t matter as long as you’re actively putting away money one way or another,” explains McCurry.

The advice

“Figure out how to invest it as you go along. The planning aspects of it, how much you need to save, your budget, your withdrawal rates, and all that — that’s a lot easier to figure out later in the game,” he advises.

Time is one advantage you’ll never get back so if you’re planning to retire early, don’t worry about knowing everything there is to know about taxes and investments. “Start saving today, and then get smarter at tax planning as you learn more, as you go along,” says McCurry.

Nicole Crampton is an online writer for Entrepreneur Magazine. She has studied a BA Journalism at Monash South Africa. Nicole has also completed several courses in writing and online marketing.

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Personal Finance

7 Steps To Achieve Financial Freedom

Achieving financial freedom doesn’t necessarily mean becoming filthy rich – not that that hurts.

Brian Tracy

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In this video, Entrepreneur Network partner Brian Tracy explains the seven steps you need to take to achieve financial freedom. Now, financial freedom doesn’t mean becoming filthy rich – lottery winners go bankrupt all the time. Instead, financial freedom is about becoming disciplined and using your money in a way that ensures you can live the sort of life you want both now and in the future.

Related: 5 Qualities Of Successful Entrepreneurs

That’s why the first step isn’t about getting a lot of money. Instead, it’s about teaching yourself to think positively about money. That way, you’ll be in the right mindset to move forward.

Click play to learn more.

This article was originally posted here on Entrepreneur.com.

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4 Ways To Become A Millionaire Even When You Start With Little

It costs nothing to take advantage of the limitless opportunities online.

Timothy Sykes

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The hardest part of becoming successful is getting started to begin with. But despite the challenges ahead of you, there’s a way to become a millionaire when starting with little. I’m going to show you four reasons why you can become a millionaire with just a small investment.

1First focus on learning, not big gain

Education is your greatest weapon. Focus on learning in the beginning. Don’t make the mistake of focusing on making huge gains in the beginning. Learn everything you can because this is how you build the foundations for long-term gains.

They say that if a millionaire goes bankrupt they’ll nearly always be able to get it back. And that’s because they might have lost their money, but they have the knowledge of how to get back to where they need to be.

Related: 21 Choices Millionaires Make That You Aren’t Making But Should Be

2You can learn loads about any topic online

online-learning

I’m grateful for the internet. It’s the single biggest library in the world. You’re reading this article right now and you’re acquiring knowledge you wouldn’t have been able to acquire 40 years ago. Use the internet to its fullest extent, whether that’s through reading books, browsing articles or watching video tutorials.

Set some time aside every day to learn something online. It could be a video series or a favorite blog. When you get into the habit of learning regularly you’ll find that you advance much faster.

3Focus on the niche you love

These days you can learn about anything and target the niche you’re passionate about. This is what I was able to do with penny stocks. I found a gap in the market and provided knowledge to people who wouldn’t have otherwise being able to access this sort of information.

You can do that with absolutely any niche. When you find a niche you’re passionate about and you use the reach of the Internet you start to make huge gains.

4Prove your expertise by creating free content

Your reputation as an authority is the new business card. There’s a reason I created a penny stock guide and made it free for all. You may have already seen ads for it on social media. The way to succeed with little is to create a reputation through your content.

It’s the gateway to success because through free content you start to build relationships with others who value your work. And from there everyone gets richer.

Related: How To Become A Millionaire, Explained In 1 Minute

You can do lots with a little

The days when you needed a huge investment to become successful are long gone. These days you can do so much with just a little. Find what you love, advance your knowledge in that area, and create a product that fulfills a need. Finally, work on building up relationships through portraying yourself as an authority on your subject.

Combine everything together and you can accomplish anything.

This article was originally posted here on Entrepreneur.com.

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12 Millionaire Habits To Start Making Serious Money Soon And Build Wealth In A Hurry

Get-rich-quick schemes rarely work but doing the right things every day rarely fails.

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There’s a mindset that’s prevalent these days. It’s one of instant gratification in an on-demand society that looks for quick results with very little effort. Entrepreneurs know that life doesn’t work that way. You need to put in the sweat equity if you’re looking to gain serious results.

When it comes to making money, certain good habits push us forward while some bad habits deter us from getting rich or even making any semblance of serious money.

Clearly, many people are making money and some are making lots, but if they mismanage it and pilfer it away on mindless pursuits, building the proverbial empire is going to be far harder.

Making money is one thing, but creating wealth is an entirely different thing. Obviously, most people can quickly make an extra $100 by selling used items or doing a small gig on a site like Fiverr, but if you’re looking for the kind of cash that can make a significant difference in your life, embrace these 12 millionaire habits. They are sure to drive you in the right direction. You’ll find ways to create real wealth by beckoning financial opportunity and potential windfalls through a positive mindset and a sound emotional, spiritual and mental state. That is quite literally the most powerful mixture of habits that exists for entrepreneurs.

1Always add value

Value makes the world go round. Everyone wants to get value out of an exchange. The most successful entrepreneurs in the world know that if you’re going to make lots of money, then you need to always be adding value. Always seek to add more value to whatever services, information or products you’re selling.

Related: 13 Habits Of Self-Made Millionaires You Could Adopt Today

2Wake up early

The early morning hours are replete with quiet solitude. It’s when you can refine your thoughts and implement your plans before all the distractions of the day. If you are constantly dealing with interruptions throughout your day, find your happy place in the morning. Wake up early so you can plan whatever will advance you toward your goals.

3Exercise

exercise-good-life

Making money isn’t just about implementing good career or business habits. You need to be fit emotionally and physically to fire on all pistons. Exercise in the morning, even if briefly. Exercising gets the blood flowing and oxygenation to the cells, helping you to think clearly and be laser-focused. This habit is implemented by some of the world’s richest entrepreneurs.

4Daily goal setting

You have your long-term goals in place but, if you’re looking to make serious money and quickly, you have to set goals every single day. These are milestones on your way to your biggest and most outlandish goals. Do this when you wake up, first thing in the morning, so that you stay on track and on target. Decide what will move you closer to those financial goals by the end of the day, then go out there and do it.

5Effective time management

Everyone in this world has the same amount of time. The 24 hours of each day is life’s greatest equaliser. It doesn’t matter what we do, where we’re from or how much money we have, we all have the same amount of time.

Effective time management is a must for those looking to get ahead. Whether your goal is to earn a lot of money over time or you just need to earn a little bit of extra cash quickly, properly managing your finite time is what makes it possible to succeed.

Related: 4 Bad Money Habits That Have Left Millionaires Broke

6Networking

Networking is one of the most important habits to have in life. The sayings go, your network is your net worth, and if you lie down with dogs, you’ll definitely come up with fleas. Reach out to others and find out what you can do to add value to their world.

Don’t ask for anything in return, especially not right away. Just insert yourself into the mix, and eventually the opportunities will find you.

7Innercising

John Assaraf

John Assaraf

John Assaraf, who built up a billion-dollar real estate business and is featured in the movie The Secret, preaches the importance of “innercising” in his NeuroGym system. Innercising is mental exercise to reprogram subliminal conditioning deeply embedded in our subconscious. The goal is to frame the mind with a positive financial outlook which attracts money and opportunities to our lives, rather than pushing them away.

8Healthy diet

Will eating healthier help you to attract more wealth or make more money in the interim? You can bet it will. Sound body, sound mind. To have the precision thinking and focus of a highly-trained athlete, you need to eat healthily. Our bodies spend a large amount of their energy on processing foods. Unhealthy eating leaves us with less energy for achieving our goals, whatever they are.

9Saving and investing

Obviously, saving and investing is fundamental to building wealth. It won’t happen as fast as you’d like, but the larger component at play is having moment-of-the-opportunity cash to invest when something requires your attention immediately. When you have capital and are no longer living paycheck-to-paycheck, you’re ready to earn more money when the opportunity presents.

Related: 20 Habits Holding Me Back From Being A Millionaire

10Mindfulness

If you play a cutthroat game and walk all over people, few opportunities will come your way. Being mindful and respectful of others attracts opportunities that you can eventually convert into cash. Be mindful about how you act and what you say so it doesn’t come back to bite you in the butt.

11Work with a mentor

Mentors are great for helping you to earn extra income, whether small or large. A mentor who’s achieved outlandish goals in your industry will offer guidance to help you get where you’re looking to go.

Find a mentor and work with them daily. Ask for their help and guidance as you navigate the choppy waters towards success.

12Contribute to others

Contribution is born from an abundant mindset. When you are sated and have enough for yourself, look to contribute. You can trick your mind into an abundant mindset by simply contributing your time to others. You don’t have to give money. Only time. It’s a subconscious mind trick that moves you away from scarcity to attract more money and opportunities into your life.

This article was originally posted here on Entrepreneur.com.

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