Road to financial freedom and prosperity should be paved with responsible financial choices, futuristic planning, and a lot of sacrifices.
Are you an entrepreneur with a start-up and dream to become a millionaire one day? Here we are trying to show you the road to financial freedom, which will pave the way to your dream. One smart move that everyone should make is keeping an eye on things like the current mortgage refinance rates or good deals on consolidation loans. As the first point, there are many things to learn from those who have made it possible through smart decisions and wise moves even with a small income.
We can see that it is their financial discipline and dedication to get out of debt that helped them to keep going and build the wealth. All the rags to rich stories point towards the importance of making every day little financial decisions help you to put on wealth into your own pocket rather than someone else’s. If you are an entrepreneur or even a common man with a limited income, here is a list of top things to do to work towards the goal of becoming a millionaire.
#1. Set to automatic savings mode
With the advancement of technology in terms of online money transfer, you may be now paying your electric bill, gas bill, or other utility bills by setting it to an auto-mode payment; but have you ever paid yourself automatically?
If not, it is essential to start a habit of setting up an automatic payment to your savings account which is a simple, but powerful way to grow your savings over time. Here’s how to simply do it.
- Step #1: Open a savings account which you may have to keep reserved for your millionaire dreams.
- Step #2. Do an audit of your finances and decide what amount you think you can comfortably set aside each month to be transferred to savings.
- Step #3. Next set up automatic weekly or monthly payment to this account. A sample calculation goes like – saving just $25 a week will let you save $1,300 a year. A $100 per week savings will let you save $5,400 every year. You also may be earning some add-on interest for these savings, which will also act as a catalyst to bring you closer to the millionaire dream over time.
No matter what the amount you decide, the right first step is to get started with it and next, keep it rolling without compromise.
#2. Watch on and pay off the debts
Being an entrepreneur or even an individual with frequent needs for a cash advance, you should know that the interest payments may slow down your wealth goals than anything else.
For the readers who owe to other in terms of credit card payments or loan repayment, it requires smarter and stricter planning to get rid of debts. Many don’t know the facts like it is possible to transfer your balance owed on a credit card to a new card and also enjoy the benefit of lower interest. This is an ideal option for anyone with many credit cards.
Consolidation of debts, as per the advice of nationaldebtreliefprograms experts, is another best way out to consider for those who are suffering from multiple debts. Having a single bill to pay off monthly will be much easier for individuals than handling various payments to keep a track and get confused. There are many credit card services offering balance transfer cards with reduced interest rates, which will be beneficial to those who are troubled with cumulative debts.
It is possible to consider debt consolidation loans if there are two or more debts to be paid off. Consolidation loans also offer the benefit of lowered interest rate and also higher repayment term. For those who also need to pay off the mortgage debts, the tips are:
around when it is time to renew the mortgage for the lowest possible
- Compare the fine prints on terms like pre-payment penalties and portability of loans.
- Make the payment lump-sum and get rid of debts when possible.
There are many online resources available to do the research and comparison of mortgage rates.
#3. Make more responsible personal expense choices
An average mal to be taken in a restaurant may cost about 300% extra when compared to the price of ingredients for it you would probably buy at a grocery store and cook yourself. Say, for example, a $20 pasta dish at an Italian spot may cost you only around $6 on making at home.
An interesting statistic show as per the Bureau of Labor Statistics Consumer Expenditure Survey of United States Department of Labor that meals account for about 12.5% of the budget of an average American household. Majority of this budget is consumed by eating out. One could probably save thousands of dollars each year on simply cooking meals at home, which is not only cost-effective but also healthier and more delicious.
Similarly, in case of entertainment too, take advantage of the technology era and find better cheap local entertainment such as a music festival, art exhibition, talk shows and more. Cut down on your travel cost as it is not always necessary to take an overseas trip for a year-end vacation as there are many unseen and attractive destinations inside the country itself.
#4. Know smart ways to trim down your bills
Revisit your recurring monthly bills for various services like cable, phone, storage, gym memberships, etc. and cancel those which you don’t really use. It is possible now to cut off your cable and turn to less expensive internet streaming like Hulu or Netflix. A fixed phone bill can be avoided if you are always on the go and own a cell phone. Trimming down your bills will add some extra money to your pocket or the savings account.
Smart spending is not sacrificing everything you wish to, but thing straight and choose what things you need over like and when. Once if you train yourself to make small sacrifices and then the larger decisions will follow easily.
The goal of making yourself a millionaire is a terrific concept, but it may not come to you that easily. So, be persistent in your efforts and also learn from the experiences to achieve it one day for sure.