Want to have a million dollars in your back account? Think that it's impossible unless you become the CEO of a new tech company or you win the lottery? Well think again! Having a million dollars in your bank account is less about striking gold and more about making smart choices when dealing with saving and planning. Best selling author, David Bach, has been advising people on ways to invest their money so that with a little time and thought they can have tons of funds hanging out in their pockets ready to live the life of their dreams.
Bach made is first million by the time her was 30 years old. He understands that most twentysomethings are not landing jobs that pay $100,000 a year, so Bach suggests that even starting to save $2 a day can put you on the path to having millions later in life.
Ditch The Small Stuff
In order to save the money on the daily that you need to have the money in the future that you want, you may have to ditch the expensive coffee store coffee's or the daily craft brews and make your own coffee at home and pre-drink before meeting your friends out.
Bach says that you have to think of it as paying yourself in order to invest in your future. He suggests the magic number is 20. Strive to pay yourself 20% of your income yearly and you will have more than enough in savings later in life to be comfortable.
Talk About Finances With Your Partner
It is important to you and your partner are on the same financial alignment and posses the same financial goals. Having in-depth discussion about your money is not only the key to saving in the end, but also the key to a happy marriage right now.
Saving Is Not Enough
Nowadays there are financial experts who say that is it not just enough to save your money to support your future, your need to invest your savings in smart ways in order to watch your savings multiply and grow, giving you the most benefit and reward for your investment.
Investments are tricky and can reap huge rewards but at a high cost. Take time to plan your investment strategy and use the help of a financial expert to make sure you are making wise decisions with your money that will help you out in the long run.
Give Up The Luxuries
Some things that we think we need in life are really just luxuries that are eating away at our money. Not only does giving up these things help us realize that a simplified life is a much happier life but it frees up our money to be used more wisely in the long term.
Give Yourself Time To Adjust
While you may make the decision to change your way of life to be more money conscious over night, that doesn't mean its going to be easy. Give yourself a little bit of time and wiggle room to adjust, if you are going to be cutting out fancy coffee, invest in a nice at home machine and good quality coffee beans to help the transition.
Pass On Good Habits
In Robert T. Kiyosaki's book "Rich Dad, Poor Dad" he illustrates how passing down good financial habits about saving to your children is essential to their development. And that parents should be focused on teaching their kids to save money, not necessarily on how to make lots of it, in order to be successful.
Change Your Thinking
Bach talks about how it was hard at first to switch his thinking towards paying himself first and then using the rest of his income to pay for his life. Instead of trying to scramble some savings at the end of the year after all your costs, pay yourself first and the rest will fall into place.
While you should start small when adjusting to a savings lifestyle, once you have it down, challenge yourself to save more than you are comfortable with, the more you save the higher the reward in the end so push yourself to life within a means that can give you the best savings outcome.
Any Progress Is Good Progress
If you started with paying yourself 1% a year, and then moved yourself to 5% after the first year, try increasing your increments yearly until you have reaches your goal of paying yourself 20% per year. Using goals like this and making small progress can keep you motivated for the long haul.
A Plan For Everyone
You may be one of those people who think that there is no way this type of financial planning can work for you, but Bach disagrees, he says this type of saving, if approached correctly can be used by anyone in any type of financial situation and it 100% successful.
Write It All Down
One of the best ways to helping ourselves with booming successful is to hold ourselves accountable, and the easiest way to do that is to write everything down. Once your goals are written in pen on paper, it is easier for you to follow through with these plans.
It All Becomes Second Nature
It might be a bit of a struggle at first to get into the swing of things and pay yourself on a monthly basis, but after a couple of months is all become automatic, you don't even think about it anymore and the money is out of your hands before you can think about it.
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