Use These Personal Finance Tips To Grow Your Wealth!
If you want to grow your personal wealth it can help to listen to personal finance tips from people who have done that successfully. The fact is that for many very wealthy people it wasn’t one windfall that grew their net worth. It was making good choices, big and small, each and every day.
There is no doubt that learning some of the smart choices that the very wealthy make and incorporating those choices into your financial life can only be a positive move.
Here are two great personal finance tips from the very wealthy.
Automate your finances
If your financial plan isn’t on auto-pilot, change that immediately, encourages self-made millionaire David Bach. Automating your finances — sending your money automatically to investment accounts, savings accounts, and creditors — allows you to build wealth effortlessly.
It’s “the one step that virtually guarantees that you won’t fail financially,” Bach writes in “The Automatic Millionaire.” “You’ll never forget a payment again — and you’ll never be tempted to skimp on savings because you won’t even see the money going directly from your paycheck to your savings accounts.”
Simply link your accounts, so that money from your paycheck goes straight to your 401(k) or from your checking account to your savings account, and set up the exact day you want to make transfers.
In addition to never making a late payment again, automation “frees up valuable time and allows you to focus on the fun parts of life, rather than spend time worrying about whether you paid that bill or if you’re going to overdraft again,” writes Bach…
…Save, don’t spend, unexpected cash
Pretend that extra money, such as a bonus, birthday check or any windfall, doesn’t exist.
Get in the habit of putting any surprise cash, even if it’s just that $20 bill you found in your coat pocket, to work. Apply it to student loans, debt, your emergency fund, or an investment account. It’ll add up. Plus, establishing this habit early on will help you avoid lifestyle inflation when you get more surprise cash in the form of a raise. – CNBC
Doing Smart Things Over And Over Again Can Pay Off!
Now that we’re on a roll let’s look at three more great personal finance tips from those who have earned and grown wealth successfully over many years.
You Don’t Have to Game the System
Billionaire Warren Buffett lives in Omaha, and he made his investment fortune on the fundamentals: focusing on companies with strong annual cash flow, and choosing companies that aren’t at risk of technical obsolescence. Buffett spent the early part of his career investing in insurance companies. It’s not sexy, but it obviously worked. Whether you have $50 to invest or $5,000, sticking with the fundamentals is smart.
Simplify Your Life
This personal finance tip is similar to the previous one. Warren Buffett lives in a house he bought in 1957 for $31,500. Carlos Slim has lived in the same house for more than 40 years. Constantly pursuing things you don’t need puts you on a financial treadmill, not an upward escalator.
Walking and Taking Public Transport Is Nothing to Be Ashamed Of
John Caudwell, David Cheriton, and Chuck Feeney are billionaires you probably haven’t heard of, but all three walk, ride bikes, or use public transport for everyday getting around. It’s easy on the bank account, and better for the environment. If these guys aren’t ashamed at taking the bus, you shouldn’t be either. Haters are gonna hate. Ignore them. – Mint
What personal finance tips have you found most helpful with your own finances?