Anyone can become a millionaire, why can’t you? There are many different ways to reach millionaire status that are fully attainable with hard work and disciplined savings techniques. Saving money is easy, and successful savers have known the secret is to pay yourself first.
When you decide to pay yourself first, you make a conscious decision to attract money. If you want to become a millionaire, you will focus your energy on creating more money in your life.
The secret to your financial success – pay yourself first
Learning how to setup the foundation to your financial success takes a few minutes and will guide you for years to come. If you pay yourself first, you will find your financial journey to be easier than most people.
Each pay cycle when you receive your payday, it is important to take a percentage of your paycheck and distribute a portion to your savings account. The idea of paying yourself first, will help you save money before spending any money on unnecessary things. If you want to become a millionaire, you need to prioritize correctly. Mastering your personal finance will help you reach your goals faster than ever.
Reach Your Financial Goals faster by spending less, saving more and paying yourself first.
It might sound boring, but spending less money than you earn while contributing to your savings account will drastically help you reach financial success. Despite monthly bills, your rent payment and living expenses; you pay yourself first.
When you focus on contributing money to savings accounts that will allow you to collect interest on your money, you will notice your wealth start to grow. Your financial success will start to compound as you shift your focus towards saving more money before spending money.
Prioritize your savings first
No matter what you are saving for, it is always recommended to allocate a percentage of your paycheck towards your savings account before you do anything else. Once you begin to prioritize saving your money over spending your money, you will train yourself to always pay yourself first.
As you start seeing your savings accumulate, you will start to feel encouraged and want to save even more! In pursuit of becoming a millionaire, you must always prioritize your savings rather than spending.
Automatic financial tools
Take advantage of automatic payment functions within your mobile banking apps to make your savings process more seamless. Once you setup the automatic deposit feature, you no longer have to rely on yourself to remember to save each month.
Taking the initiative to setup automatic bank transfers will not only force yourself to save money, but it will enable you to start collecting interest on your money almost immediately after receiving your paycheck.
Paying Yourself First
Each month when you receive your paycheck, it is tempting to spend that money as quickly as you can. It’s exciting to see new money arrive into your bank account. The problem with that is, if you spend the money too quickly, you won’t have anything left over to contribute to your savings and retirement accounts.
Instead, if you follow the general rule of thumb to pay yourself first, you will never have to worry about spending your paycheck too quickly. Rather than rely on yourself manually setting up a bank transfer each month, the automatic transfer of funds is much more efficient and reliable for you to stay on top of your savings.
Keep Your Savings and Checking Accounts Separate
It’s important to note that mobile banking has made our lives easier with the real-time access to our bank accounts. Due to the nature of mobile banking, it is recommended to keep your savings account in a separate bank than your checking account. Otherwise, you might risk transferring money between accounts too often without keeping track of your finances.
Getting Out of Debt in 2020
The common question people ask is “What if I have debt? How can I save money if I am in debt?” The answer is simple – pay off any high-interest debts like credit card debt or student loans before trying to invest your money.
The reason behind this logic is pretty straight forward. High-interest debt like credit card debt will cripple you for years if you do not tackle that immediately. Although it might be tempting to start saving money to collect 2% interest rates, it is smarter to pay back any outstanding debts instead. Rather than letting high interest rates hold you back, it’s smart to pay off your debt as much as you can to knock out your debt as quickly as possible.
Making More Money in 2020
It’s common to want to make more money each year. Whether you are searching for a higher paying job, looking to make extra money from home or you want to take advantage of your free time by picking up a side-gig; there are many different options to choose from if you want to make more money in 2020.
Companies like Amazon, FedEx and UPS are constantly hiring new drivers for their delivery programs with excellent employee benefits. Not only do these companies recruit new drivers, there are also opportunities to open your own UPS or FedEx store and Amazon offers Delivery Service Partner programs to give you the opportunity to own your own fleet of delivery trucks.
Building an Emergency Fund in 2020
Providing yourself with a financial cushion will help you avoid getting hit with any service fees or late charges with any of your bills. Although it might sound difficult, building an emergency fund in 2020 should be one of the first things you focus on for your financial foundation. This will help you stay more comfortable with a cushion to lean on if you run into any surprises that will cost you money out of pocket.