16 Money Rules That All Millionaires Stick To (4 of 4)

When You Are Saving, Start Small

Another reason saving might be getting a bad rep is the fact that people take such drastic measures when they start saving as well. People will make massive cuts into their daily lives which leads to dramatic lifestyle changes.

But while that could help, most people will crumble under the pressure and stress. After all, a huge lifestyle shift is huge and takes time to adjust.

What’s smarter for you is to begin making small cuts in your life before doing anything drastic.

For example, if you go to a coffee shop every day over the weekday, try cutting one trip at first.

Or if you’re adventurous, cut it out entirely.

Cutting out coffee is a great start but you can still make gradual cuts moving forward. Do you go out for lunch for work? Try cutting those meals out. And once you start cutting those small things, try cutting something bigger. Do you have a hobby that costs you a lot of money? Maybe try cutting it out entirely.

By the time you cut an expensive hobby out, you can find yourself saving a ton of money. It also goes to show that small changes can lead to you getting used to them and feeling more confident in making those bigger changes down the road.

Leverage Compound Interest

One of the strongest tools in your investing arsenal is compound interest – that’s interest on interest. Anyone who is in debt knows the horrors of it when it’s working against you, but certain investment vehicles that are available for the public do have compound interest working for us.

Those financial vehicles are things like high-yield savings accounts, index funds, and stocks.

Pick one of those options and start putting a portion of your paycheck into one of those.

Permit Yourself A Monthly Bonus

If you were one of those types who got allowances as a kid then this is basically the grown-up version. The only difference is that instead of your parents forking the money, you are to yourself.

Make a point of putting most of your own money into either savings or investing and saving enough to cover your own needs like food, rent, and bills. And by the end of it, you should also be having enough money to award yourself a little bonus.

Having this strategy in mind can be incredibly helpful if you are the type who can’t be as trusted with their money. Restricting it in this fashion can ensure you don’t go overboard.

Find A Job That Isn’t Work

One of the big problems people run into these days is that they work at jobs that they absolutely hate. Worse, people stay there mostly because of the money. It’s a terrible philosophy to have because it makes saving all the more harder since you’re miserable while making that money.

Instead, look for an organization – if you feel you’re in a field you are passionate about – or a new field that gives you joy. It should give you a sensation that you’d love to work there even if you were working there for free.

Of course, you’ll still be getting paid, but the idea is that working at a place that makes you smile and gets you out of the bed is a lot better than one where you groan and have to drag yourself day in and day out.