Millionaires Practice Financial Basics
If you remember only one thing from all the lessons your parents taught you, remember the one about… never having any regrets…
If you fail to take advantage of all your financial opportunities, you will regret the missed opportunities you get to be able to retire a millionaire.
What Would A Millionaire Do?
You can retire a millionaire if you understand that retirement planning is a journey, not a one shot deal. You secure your financial future by investing in it today, not waiting until tomorrow. You become a millionaire by practicing the basics. Millionaires practice money basics every single day.
Practicing Financial Basics|Act Like A Millionaire
#1 – Make Money A Priority
The only money that will be there on the day you retire is the amount that you sent ahead. Cut the excuses you make to yourself as to why you don’t have enough money to make your retirement plan contributions. Make your retirement plan a priority and cut the excuses.
#2 – Show Me The Money
Can’t find extra money? One of the best ways to find extra money to invest into your retirement plans is to establish a budget. The budgeting process will show you where you are overspending and where you can cut back to free up some money to invest in your financial future.
You will find a lot of extra money if you stay out of debt. Debt is expensive and a waste of money. The money you pay on fees and interest could be invested.
#3 – One Dollar At A Time
You do not have to invest a lot of money at one time to make your investments pay off in the end. Investing a little at a time will also pay off, it just takes a bit longer. Millionaires invested one dollar at a time too.
#4 – Don’t Stress Out|Know Your Risk Level
If large swings in the market rattle you, you may be investing in too risky of an investment. To become a millionaire, you do not have to incur a lot of risky investments.
Understand how much risk you are personally willing to take with your investments. Find a balance between the risk you are willing to accept and the rate of return you find acceptable.
Forget about the chatter at the water cooler, you need to be comfortable with your personal investment risks. If you are comfortable with the level of risk, do not become anxious when the market swings down, up and down again.
#5 – Stay Focused|Act Like A Millionaire
Avoid Acting On Hype.
Millionaires avoid hype. Make your own financial action plan and stick to it. By acting on hype you could bail out of the market on misinformation and miss a market upturn.
Avoid Emotional Investing.
Millionaires skip the emotions. Emotions derail; emotional investing could derail your investment decisions.
Avoid Too Often
Millionaires do not pressure themselves. Avoid trading too often; you only put pressure on yourself when you try to “beat the market”. Professional money managers do not even “beat the market”. Stop pressuring yourself.
Losses Are The Nature Of The Beast
Millionaires understand losses and gains. Try not to be overly averse to losses. Unless you are retiring relatively soon, your retirement plan loss is a paper loss. By selling out because of an overreaction to a market dip, you could turn your paper loss into a real loss, so be careful.
Millionaires don’t chase. Stop chasing guarantees; instead, know your personal risk tolerance, time horizon and financial goals. Work with a retirement calculator to determine approximately how much money you will need and work towards that goal.