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.
6 Ways To Develop A Millionaire Mindset
Chasing money has remarkably little to do with getting rich.
If you truly want to have a million dollars, you must first be and think like a millionaire. By doing so, you will attract the necessary resources to you.
So, you want to become a millionaire entrepreneur? You’re not alone. Many dream of leaving their job and becoming their own boss, enjoying the various millionaire lifestyles we watch on TV. But there’s a difference between those who dream of becoming millionaires and those who do. And it begins and ends with mindset. If you don’t develop that mindset, you will continue to spin your wheels, working just as hard, but never going anywhere.
Developing a millionaire mindset requires you to stretch your thinking. Start by developing the following six attributes.
4 Ways To Become A Millionaire Even When You Start With Little
It costs nothing to take advantage of the limitless opportunities online.
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.
1. First 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.
2. You can learn loads about any topic online
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.
3. Focus 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.
4. Prove 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.
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.
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.
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