Nowadays, people have everything to achieve financial well-being over several years. You can start your business just in 1 day! Thanks to the Internet, you can work with a team from another country, and your customers will buy goods or services from almost every corner of the globe. You may have the following question in your mind: why am I still not a millionaire if there are no technical restrictions? To become rich and successful, you need to form a certain way of thinking and develop new habits. Our following rules are focused on these points.
If your lifestyle, thoughts, actions did not get you to the desired results, it means that they will not fit in. Try to act like millionaires, at least for a year. If your income increases, then don’t stop. There is always a way to return to your old habits.
So, the first rule of your financial well-being – the goals that inspire. Every person who earns money knows exactly what he needs money for. Write your goals for 10 years, a year, half a year, a month, a week, even a day. Read your goals daily. In this way, you are setting your brain to look for the new opportunities that will lead to these goals.
The second rule is that your money should be under control. Develop the habit of counting money. Write down spending and income every day. You need to know exactly how much money you spend on food, entertainment, bills, car, and how much money is left for investment, charity, or big purchases.
The habit of counting money gives you an ability to control and manage your cash flow. For example, your salary is $1000. Of this sum, $650 goes for utilities, food, and other basic needs. You have $350 remained. Divide them into 4 parts. For example, $100 for the formation of a financial cushion, $100 for investment, another $100 for a house or a new car, and $50 for charity.
When you have specific numbers in front of you, you can reallocate funds and change cash flows. Let’s imagine you have found a reliable way to invest and get 10% per month. To earn more and faster, you can reallocate money from the “Car category” and increase the amount of investment.
Pay Yourself to Get Financial Stability
Remember one truth: your salary is not your money. Yes, exactly! When you receive money, you need to pay the bills: an apartment, a car, a kindergarten, family expenses, the Internet charges, food, and clothes. How much money after these mandatory expenses really remains in your hands?
Start paying yourself the same way you pay your bills. To pay yourself is to save money to create your personal reserve fund. We wrote about the financial cushion. So, pay yourself 5-10% from each income. In any case, do not waste this money. In the future, you can invest and multiply some of them. This one is the third rule of financial stability.
Breaking the Glass Ceiling
Have you heard of the scientific experiment on fleas? They were put in a jar and covered with a lid. Usually they jump high, but there was a lid here, and they used to jump below the lid. After a while, it was removed, but the fleas still jumped below the level of the lid, although now they were not limited by anything. This is called a glass ceiling effect.
Habits and limiting beliefs are instilled from the early childhood by society. The danger of the glass ceiling is that we do not see it and do not know the reasons of its emergence. How is it seen in life? Look at your income level. What is your maximum salary? For example, you received $3000 only for two months a year, but you got $1500 in the other months. Therefore, your glass ceiling is $1500. At the same time, there is a good chance to push it to $3000 in the next couple of months. For this, you need to start practicing the recommendations from this article. Here is the fifth rule: constantly work on negative beliefs.
To achieve financial well-being, it is necessary to replace the negative beliefs with the positive ones. For example, you think that money is evil, not happiness. If you agree with this idea, then you will not have money at all. Why would you need a lot of evil? But if you look deeper, money is life. The more money you have, the higher living standards you get, the more you can afford and, consequently, become happier.
How to break through the glass ceiling and get closer to financial well-being? First, write all your negative beliefs. Write positive ideas in front of every negative one. For example, money brings evil – money brings pleasure and happiness.
Take Advantage of Opportunities
The fifth rule says to give up no opportunity to earn more. Millionaires perceive any event or proposal as an opportunity. Opportunities can be divided into 3 groups. The first are those that help to accumulate capital. These include any additional job offers. Try doing what you hadn’t done before. Get more money from additional part-time job. It will give you more funds for investing.
The second group of opportunities – profitable investment. Rich people not only accumulate, but also invest money in order to earn even more. If you are offered to invest in business, stocks, startups, then study and use every opportunity.
The third group (and the most pleasant one) is profitable expenses. Plan the future large expenses, then you can save and buy the best at half price. For example, you want to spend vacation at the islands. If you buy tours and air tickets 3-6 months ahead, you can save about 50%. If you want to buy a car, wait for the best promotional price. This way you will get the best and save some sum. Invest the money saved and ensure your financial well-being.