Some people are born into money, others inherit it. For a small minority, there is the ever-elusive lottery win. Those people aside though, becoming a self-made millionaire is not the far-fetched idea that it once was and while it isn’t necessarily going to come easy, it’s certainly something to strive for.
INVESTMENT TIPS FROM MILLIONAIRES
Saving and investing to grow your assets, and keep them growing, is the key to your financial freedom and brings the ability to enjoy the lifestyle you truly desire. While you might have fun in the process, you will not get rich by spending and you simply need to be putting money aside.
GENERATE AN INCOME FROM YOUR INCOME
A key step to building wealth is by saving, but you need a strategy. Whether this is to save a set figure, a set percentage, or a flexible amount, and where to put it and for how long are likely going to be determined by your lifestyle and needs, but as lifestyle financial planners we can help with that. It takes money to make money, as the adage goes, so why not put your money to work and use it as an income stream itself? Different opportunities present different levels of risk so make sure that you are happy with the investment plan you have in place.
AUTOMATE YOUR SAVINGS
The way we would recommend that you view your life insurance and protection policies, whereby you automate them to leave your account each month, is the same way you should treat your savings.
Automate everything and thereby remove the temptation to skimp on what you put away. Set aside a portion of your income to automatically go to your recommended savings or investment account or scheme. The money is still yours so try not to see this as an expense and view it as what it really is – an investment.
GENERATE MULTIPLE INCOMES
Don’t put all your eggs in one basket. This is one of the biggest mistakes people can make when they come into money for the first time. By having multiple incomes you can spend one and bank one, knowing that the one you are banking will be there if times ever get tougher. This isn’t always possible of course, but if you have the opportunity to have more than one source of income then take it!
Will these tips really make you a millionaire? Well, they might, but there are no guarantees. What’s the worst that can happen though? You fall short of the million but have a hefty sum in savings that you wouldn’t have had otherwise? Wouldn’t that be a nice problem to have?
For savings and investment tips to get you a step closer to financial freedom, please contact us and ask to speak to one of our advisers.
This article does not constitute financial advice and should not be construed as such.