Sure, we all dream that our enterprises will prosper and flourish, but the reality is that there are sure to be plenty of rainy days in the future.
Smart entrepreneurs set money aside to weather those storms.
Take me, for instance. For the past five years, I’ve earned six figures from my business. This year I’ll be lucky to earn five. I gave up a high-paying gig, and now my monthly income doesn’t come close to covering my expenses.
But I’m not panicked. In time I’ll earn more money; meanwhile, I can live off my nest egg. You see, over the years, while I was making much more than I needed, I socked away money in savings.
As a result of my forward thinking, I’m able to focus on the big picture ahead instead of freaking out over day-to-day expenses. It’s a sweet feeling and one you can enjoy yourself – if you take action now.
How Much to Save
The standard recommendation from financial advisors is to save 10% of your income. That’s a nice guideline, but the truth is that each person’s situation is different. I have three recommendations.
- Always save something, even if it’s just $20 a month. Starting small will turn saving into a habit.
- Aim to sock away 20% of your after-tax income. This will be easier once you realise that paying off debt and contributing to your retirement plan counts toward that goal.
- If you’re in a position to sock away even more, go ahead and save as much as possible. I encourage people to save until it hurts, a sort of financial version of “No pain, no gain.”
Americans and Retirement Savings
Where to Save
Don’t just put the money into an account that pays 0.01% interest. There are ways to earn a return on your nest egg.
- Open an online high-yield savings account. ING Direct, Ally Bank, EverBank and other institutions offer interest rates far above the national average. And by moving your savings online, you’ll keep that money separate from your checking account and therefore make it harder to use for impulse buys.
- Explore reward checking accounts from a small, local bank or credit union. These accounts usually offer higher rates than online savings accounts – if you meet certain requirements, such as making a minimum number of debit-card purchases each month and agreeing to receive statements electronically.
Building a buffer of savings in the bank is like buying business insurance. Thanks to the cash cushion I built up over the years, I now know that I can cope with whatever the economy throws my way.
10 Tips To Become A Millionaire This Year
Becoming a millionaire requires changing your mindset and implementing some changes.
Becoming a millionaire may seem out of your reach, but it’s possible with the right attitude and guidance. The fact of the matter is your income can only grow as quickly as you do, so you need to change your mindset to achieve your goal of becoming a millionaire.
Once you have a millionaire mind, you can’t lose it, no matter what financial or business mistakes you make along the way. To get yourself there, you’re going to need some structure. To help you, I’ve outlined the top ten tips you should follow to become a millionaire this year.
If You Think These 5 Things, You’ll Never Get Rich By The Time You’re 30
Five common mistakes entrepreneurs make when starting a business and how to correct them.
Last week, I had lunch with a millennial who wanted some advice about a business he’s starting. After the usual small talk, we got down to discussing his business plan. Within a short time, it was clear that his business idea was great, his plan for executing was fairly solid and he had gathered together a strong team to help him make it happen.
So far, so good. But, to be frank, this guy has no chance of being successful with his current mentality. What it takes to be rich (or successful in any measure) has a lot more to do with your mindset than your ideas and plans.
From the time we started in business at the ripe ages of six and seven, our Grandpa Joe taught my brother Matthew and me many lessons about the details of running a profitable business. Over the years, we learned about how to create a business plan; how to market our products and services; and how to take care of customers, vendors and employees. All this knowledge has been invaluable to us in creating and running successful businesses. But, what our grandfather taught us about attitude and mindset trumps all other lessons.
Without calling out the specific individual I spoke with recently, below are five “hypothetical” attitudes that will get you nowhere in your journey to success – and the attitudes that should replace them.
5 Habits That Lead To Millionaire Business Success
You need the right habits if you’re going to succeed.
What do all millionaire businesspeople have in common? Well, a lot of things.
I found from a recent study that 80 percent of all millionaires still go to work every single day. They’re working people just like me. But, they have to keep themselves in work or it all grinds to a halt. So what are the habits you need to make your business a success?
Nothing is ever going to come easy. You can look at the likes of Steve Jobs and Bill Gates, as well as the other usual suspects, to realize that success didn’t come with their first venture. Many of them failed time and time again. It took patience for them to become successful.
I read an article recently about 36-year-old teacher Andrew Hallam who became a self-made millionaire on a teaching salary. But, in his spare time he invested smart and lived frugally.
It proves you don’t have to inherit lots of money or become an instant success to make a millionaire business.
You have to be dedicated to your craft if you’re going to become successful. Going back to Bill Gates again, he started his business in the back of his garage. Now that’s dedication.
It’s what I tell all my students. If they’re not dedicated to this, then they should leave. You need to be able to push through the barren periods if you’re going to reach the oasis of success.
3. Ambition and big dreams
Have you ever heard the quote, “Shoot for the moon. Even if you miss you’ll land among the stars”?
I take that to heart because even if you aim to become a billionaire and miss you still might be a millionaire many times over. Take the Wright Brothers as an example. Not content with creating a successful glider in 1902 they went on to create the world’s first airplane in 1903, making four brief flights in Kitty Hawk. It demonstrates the importance of dreaming big because you never know what you might achieve.
4. Learn from mistakes
Every good businessperson will mess something up. It’s inevitable. What’s important is how you learn from your mistakes over time. Do you adapt after making your mistakes?
Millionaire businesspeople always set some time aside to reflect. Then they create a plan of action for ensuring that it doesn’t happen again. Most failed businesspeople put it down to “bad luck.”
5. Focus on niches
This important! Try to take over a whole industry at once and you’ll inevitably get swallowed up by the competition. Start small and control your own niche before moving into another niche. When you master your small area, you can push on and expand.
You’ll be amazed at how much easier it is to expand after you master your own niche/audience first.
Do you have what it takes? That’s the question I always ask novice businesspeople. You need a plan and you need the right habits if you’re going to succeed.
This article was originally posted here on Entrepreneur.com.
Start-up Industry Specific4 months ago
How Do I Start A Transport Or Logistics Business?
Snapshots8 years ago
Habari Media: Adrian Hewlett
Snapshots9 months ago
27 Of The Richest People In South Africa
Types of Businesses to Start8 months ago
11 Uniquely South African Business Ideas
Entrepreneur Profiles4 months ago
10 SA Entrepreneurs Who Built Their Businesses From Nothing
Types of Businesses to Start5 months ago
10 Business Ideas Ready To Launch!
Lessons Learnt2 years ago
6 Of The Most Profitable Small Businesses In South Africa
Support for Women Entrepreneurs8 months ago
10 Successful SA Women Entrepreneurs’ Top Advice On Balancing Work And Family