Brainy Chick Finance

Financial Independence

The One Habit All Millionaires Have

The One Habit All Millionaires Have

The one habit that all millionaires have is that they are not afraid to take a chance, even if it might cost money.

What allows them to take the risk? They are set up for the fall out.

The One Habit All Millionaires Have

If an opportunity costs money, they are comfortable spending money to see the outcome. For example, every year the financial community comes together during the annual Fincon event. A typically ticket costs just below $200 and a pro pass can be around $500. Now the pro pass seems, to some, very expensive. But to a millionaire, they would determine what that $500 would get them before evaluating the cost.

If they can determine that the opportunity out ways the cost, they will take it. In this example, if the millionaire wants to heavily network, get great information on their hobby or expertise, and meet up with sponsors, the $500 might be a deal during this conference. Plus, in this case, the cost will also become a tax write off. They won’t let the initial cost of the opportunity be the reason they say no.

How they are prepared for the fall out:

Before millionaires take on risk, they protect themselves. Essentially, you want to make sure that your money will continue to work for you and that this one opportunity wont heavily impact your net worth. Each situation is different, but the main things millionaires will already have taken care of (or are in the process of) are:

  • Millionaires have either funded their 401k or the like for the year already or they have automated the process to complete the full contribution by the end of the year. If they are wanting the tax write off and want to put away even more money, they will do it as a Roth and make sure that they contribute to their Roth IRA as well.
  • An emergency can happen at any time and millionaires are prepared for it. Some not only have a rainy day fund (every day to day emergencies) but also an emergency fund that could kick in if they lost their job or a major occurrence happened. More specifically, they continue to fund these accounts even if they are past the minimum. How do they do this? Though automatic and reoccurring deposits. They set it up and forget it.
  • Diversified Portfolio. Chances are most millionaires continue to amass their net worth by keeping part of their income in investments. The easiest is the stock market, whether it is through individual stocks, mutual funds, or robo advisors, like Betterment. Their money will continue to grow even if the opportunity does pan out. Additionally, most millionaires also assess whether the opportunity will help them make more money in the long run. Whether it is an investment in another business or real estate, for examples, they will assess how much additional money they could make or if the investment could help them make more money in the future.
  • Tax Write Offs. Millionaires will minimize the impact through tax write offs. In the previous example, anything geared towards investment or personal finance can be considered a tax write off, so from buying a book or for attending the previously mentioned conference, you can try and recoupe as much of it back through your taxes as possible.

Most millionaires will never let the price be the initial factor that will stop them from saying no to an opportunity. The one habit that all millionaires have is that they are not afraid to take a chance, even if it might cost money.

Be The Master of Your Coin

Be The Master Of Your Coin

I am sadly behind on Games of Thrones and in watching, I found a correlation and great money lesson. In the third season, Tyrion gets handed the Master of Coin, which allows him to rule the money for the kingdom. But like most of us, he feels overwhelmed and not prepared about his money management:

Tyrion Lannister: Master of Coin?

Tywin Lannister: It would appear to be a position that best suits your talents.

Tyrion Lannister: I’m quite good at spending money, but a lifetime of outrageous wealth hasn’t taught me much about managing it.

Be The Master Of Your Coin

No one cares about your money more than you

The saying is so true. While people might want your money, only you will care about it more than anyone else. It is up to you if you want to GROW your money and how you go about changing your net worth. If you want to live pay check to pay check versus building a solid financial future – that is up to you.

Learn how to manage money

Whether or not you have a background with money, nothing can stop you from learning about it. And you don’t have to learn from people’s successes but also from their failures. If you see your friend go into consumer debt, acknowledge how they got there so you can avoid the traps. Managing money can be

Curb the overspending

Everyone seems to be very comfortable with spending money, but are they spending it in the right way? Are we just spending money on things because we want them versus need them. (For the things we want, build a Fun Fund so you can afford your desires.)

Know where your coins go

Track your spending. Not sure why you do not have money at the end of the month? Investigate where it is going. Half of the battle is being able to track how you are spending your money to make sure you have enough.

Will you take on the challenge and be the master of your coin?

Stop Worrying About Money to Become Rich

Do you always worry about money? Stop doing it to become rich

Do you always worry about money? Stop doing it to become rich.

Contributed article by: Good Nelly

Do you always worry about money? Stop doing it to become rich

The rich people unanimously have the opinion that if you think rich, you’re more likely to become a wealthy person. If you force yourself to think rich, you will be rich. The idea is you have to believe in yourself and start thinking what you want to be. Then only, you’ll be able to achieve that.

Now the idea is, how can you think rich and stop worrying about money? Before going to that point, let’s discuss how you want to visualize yourself as a wealthy person.

Visualize what you’ll do when you become rich

Imagine that you have the power of doing whatever you want. Think having what amount will make you rich and happy. See through the eyes of a wealthy person and visualize what you’d like to do if you have the required amount in your bank. Think realistically. When you achieve that amount, set your new target. Creative visualization helps you achieve whatever you want.

Here are 5 tips to think rich without worrying about money

You can follow these 5 tips and condition your mind to start thinking that you’re rich, and success is sure to come your way.

Feel happy to spend money

Do you feel unhappy whenever you have to spend money? If you feel so, then at the conscious level, you believe that the money you’re spending, you won’t get it back. However, you should start believing that it’s fun to spend money. Whenever you’re spending money, think that you’ll get back double the amount. The happier you can get spending money, without feeling any guilt, more you’ll get back in future. However, this doesn’t mean that you’ve to spend unnecessarily; the point is, the amount you need to spend, do it happily.

Start living as if you’re rich

To start living rich, you don’t have to empty your bank account and buy an expensive car or plan an expensive holiday. What you need to do is, stop worrying about money. Instead, analyze your lifestyle and plan how you can build a secure financial future. Learn to manage your finances efficiently. Be happy that you’re earning more than what you used to do a few years back. So, now you can afford certain things which you couldn’t back then.

Pay yourself before paying others

When you get your monthly paycheck, pay yourself first before you pay others; that is, deposit a percent of your paycheck to build an emergency fund or simply to save. Financial experts believe that to think and be rich, you need to deposit 10% – 20% of your pre-tax money into a high-interest savings account. This way, you can make your money grow, and you can use the amount in case of any financial emergency. Moreover, when you pay yourself first, you also send a message to your sub-conscious mind that you are earning, and you’re saving too. Thus, you start thinking of being rich.

Carry cash in your wallet

You rarely see a rich person running out of cash. To be rich, you need to act like a rich person. Does that mean spending whatever you have? No. What you have to do is carry cash in your wallet. The rich people don’t visit ATM much. They withdraw a relatively higher amount when they visit. When you do so, it sends a signal to your brain that you’re rich. It is also undoubtedly a better practice to use cash, than using plastic money, to become wealthy. When you spend with cash, you don’t incur debt but spend what you have. However, make it a point not to spend much. This way, you can feel yourself that you’re trustworthy.

Save more and spend less

I know, it’s not easy to save more and spend less. However, you need to be disciplined with money to increase your savings. When you save, you get the confidence that you have a secure financial future. In turn, it reduces your anxiety since you stop worrying less about your finances. So, plan a budget. It is the key to meet your daily necessities, splurge a little and save a required amount, every month.

So, what are you waiting for? To start with, at first, write down what you’re visualizing. It will give you the structure and compel you to make a plan to achieve your goals. Stop worrying about money and start feeling rich from within.

Author Bio:

Good Nelly is primarily a financial writer though she loves writing on other issues, too. After writing for several websites, a few months back, she has started her own blog – mywayofviewing.com, where she shares her opinions about different aspects of life and lifestyle. 

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