Millionaire

Today’s Article is Personal Finance tips that are going to make you rich. If you are struggling with how to manage your money and you want to become rich, you want to build your wealth. I have some great personal finance tips that are going to help help you with this. If you’re looking to do one or both of those things, make sure and hit that like button and hit the subscribe button and we’re going to dive right in. All right?

Personal finance tip number one to help you become rich is spending less than you are making. We all have heard this, I am sure, but a lot of us are not doing this. You want to make sure that you have extra income left over each month. So figure out exactly how much you are bringing home and how much you are spending.

So it gives you a really clear picture on where you are at with your finances so that you can make adjustments and make improvements along the way. Now that you know that you need to spend less than you make, personal Finance tip number two is to create an emergency fund. And a lot of financial gurus will tell you that you need six or at least three to six months worth of expenses in your emergency fund. I’ll leave a link above and below, but honestly, it is very personal for each person because some people are going to have really expensive emergencies that come up and other people won’t.

So you want to have the right amount in your emergency fund and when you do have that emergency fund or while you are building up that emergency fund, you want to keep it in a high interest savings account. I personally like using lialy. They have a pretty high interest rate on their savings account. I think it is 1.75%, but it just continues to go up. So make sure that you are making a little bit of money on your emergency fund, especially where that money is just going to be sitting there for who knows how long until that emergency actually comes up.

And now that we know we need to spend less than we make and have our emergency funds set up personal finance tip number three is to pay off your high interest debt. This is really important because if we are continuing to pay down our high interest debt it is going to take a really long time if we are not focused on that and paying extra every single month. And a lot of people ask if they should pay down their debt or invest first. And I recommend if your interest rate on your debt is 8% or higher then pay that off first and then invest your money. And there is one exception.

If your employer offers a 401 match I would at least be getting that match while you’re paying down your debt because that is free money they are giving you and that may not always be there but otherwise I would just get that high interest debt paid off and that way it frees up your mindset to think about building wealth rather than stress about paying off your debt. Sometimes we just don’t have that bandwidth in our minds when we are so stressed about debt. So really focus on paying that off as quickly as possible. And then personal finance tip number four goes along with number three and that is to stay out of bad debt. Once you pay that debt off, you don’t want to get back into more high interest debt or even just bad debt.

And by bad debt I mean buying things on credit that is with a high interest rate or that is not going to make you money. For example, a mortgage would be good debt if you are using that to purchase a rental property. Because when you purchase a rental property you are going to make your money work for you. You’re going to create cash flow from tenants that you put in that property and also you will receive the appreciation on your property over time. But if you are just swiping that credit card and buying some new clothes or some toys or some digital gadgets you don’t really need then that is not really being intentional and you are going to regret that later because you are going to pay way more for those items than the original purchase price because of how much interest you will be paying.

So we don’t want to just be accumulating a lot of stuff and then having to put it in a storage unit later and paying for that storage unit to store all of our stuff. So really prioritize what you’re spending your money on and make sure that it is something that is going to bring you happiness or lasting joy and it’s not just something that you don’t really care about that much. And then personal finance tip number five and this one is my favorite, it is to invest, invest. We want to be investing as much of our money as possible as soon as possible. And I talk a lot about this on my channel because I find it so important.

I used to be really big into saving and not so much into investing. And once I switched over from saver to investor, I really saw my wealth grow very quickly. So it is so important that we are focusing on building our wealth by investing our money, by making our money work for us. That way we can become financially free even sooner. And I’m not saying that you have to quit your job when you become financially free, but you can work if you want to work.

And if you don’t want to work, then you don’t have to work. It’s your choice. And it makes a big difference when we are doing things because we want to and not because we have to. And I personally like investing in the stock market and in real estate and also my own business. And if you are looking to get started investing in the stock market, you can do it with as little as $5.

So investing your money in the stock market or real estate is really your preference. You can do both or you can do one or the other, but make sure you are investing your money. And then personal Finance tip number six is to keep a long term mindset. And this goes along with what is happening in the stock market right now. Things have gone down and then down some more and down some more.

So if we are keeping that long term mindset, we are not going to be worried about what is happening in the short term. We are not going to sell our investments, we are going to keep them in there because we know that over the long term, the stock market will go up and down. But that trend over the long term is going up. So we want to make sure that we have that long term perspective. And a lot of people that I interact with, they ask me real estate questions a lot, and one of them is, well, should I be investing in real estate now?

Things seem really high. And they were asking me this back in 2016 when the market started getting crazy, and even in 2018 when things got even crazier. And now in 2022 and I tell them I’m not so worried about the short term. I know that over the long term, my investments are going to rise. So run the numbers.

If it makes sense to you, then invest in the property. And if you’re worried about the high interest rates right now, you can always refinance that mortgage later at a lower interest rate. But make sure that things are going to work for you and keep that long term perspective. It is going to take a lot of worry off of your mind. Comment below and tell me if you are already investing and what you are investing in.

Are you investing in the stock market or in real estate or in something else? I am curious to know. And then personal Finance Tip number seven is to set goals. You want to make sure that you have financial goals set so that you know what you’re working toward. We don’t want to just get up and go to work and come home and veg out and do the same thing every single day.

We want to have something that we are working toward so that we can improve our lives, so that we can make progress and become rich or become wealthy. And that way we can become financially free. And I know this worked really well for me. I knew I wanted to purchase four properties and once I set that goal, I was able to really focus in and decide what I really wanted to be spending my money on. Did I really want to go shopping and buy some more shoes or some more cute dresses?

Not really. I thought, you know what, I can take that money and put it toward a down payment instead. And that’s exactly what happened. I was able to reach my goal of financial freedom because I set that goal. So make sure you are setting goals and have a timeline associated with those very specific goals.