Becoming a millionaire might seem like an unachievable goal, but in reality, it is not. There are numerous millionaires worldwide and their count is constantly increasing as per various reports. The one thing they all share in common is the right mindset that can help you lead on the road to wealth.
Many people dream to be a millionaire but fail as they don’t find a way to achieve it and tend to make common mistakes. Aspiring millionaires lack the effective ways to manage their finances and almost every millionaire believes that improper and careless finance management turns you penniless and rather creates a debt trap for you.
Today, we bring you some of the best financial tips from millionaires to help you with your financial planning and turning your dream of becoming a millionaire into reality.
Income – Savings = Expenses
Rakesh Jhunjhunwala, an Indian investor and trader, is following this formula from over the decades and suggests the same to all the aspiring millionaires.
Say no to credit cards
“Credit cards are the worst investment that you can make. That the money I save on interest by not having debt is better than any return I could possibly get by investing that money in the stock market. I thought I would be a stock market genius. Until I wasn’t. I should have paid off my cards every 30 days,” says Mark Cuban an entrepreneur, television personality, media proprietor, and investor.
Always maintain emergency funds
As per the leading India-based business tycoon, Ratan Tata, during tough times like temporary unemployment, a few expenses cannot be avoided like basic household expenses, EMIs, and thus it is always suggested to create a corpus to keep going.
Have a good network
As per Steve Siebold, a self-made multi-millionaire and the author of How Rich People Think, in majority of the cases, your net worth depends upon your closest friends. The more we interact with successful people, our thinking potential expands. Thus, it is recommended to have a good network to seek inspiration from successful people.
These financial tips from millionaires majorly focus on creating healthy financial habits which is a big step towards financial success. In today’s world, when a number of income sources are easily accessible, becoming a millionaire is not an unrealistic dream.