3 millionaire habits you should adopt by 2024

Many families have had a difficult time financially over the past few years. If you’re not sure how you’re going to pay your bills or are worried about rising food or gas prices, it’s hard to even think about becoming a millionaire. Nonetheless, it is possible for many of us to build wealth.

Moreover, you don’t need to invent a time machine, make a ton of money, or inherit a fortune to do so. The secret is to develop a mindset that helps you spend less and invest more. These habits followed by self-made millionaires can help you do just that.

1. Consume consciously

There is a common misconception that millionaires spend their money on fancy restaurants and fast cars. In fact, many self-made millionaires are frugal and watch where every penny goes. If you spend less than you earn and save or invest the difference, you will be able to accumulate wealth over time. The bigger the gap, the more cash you can invest in your millionaire journey.

This means spending less or finding ways to earn more. For example, a Ramsey Solutions study on the habits of millionaires found that 93% of millionaires use coupons all or some of the time. Studies show they spend $200 less on groceries than the average American family. This shows that millionaires tend to avoid carrying credit card balances to avoid paying interest.

Conscious spending is a great antidote to one of the biggest obstacles to building wealth. I marked it as my “only” thought. For example, you might pay extra for expedited shipping or think, “It’s only $10” when you forget to use a coupon as planned.

How to Cultivate Conscious Spending in 2024

Spending consciously doesn’t mean you can never have fun. Instead, it’s important to recognize where your money is going and spend it on things that matter.

Take a look at where your money went last week and think about what led to your decisions. Are you tired after a long day and order takeout? Have you bought uneaten groceries or things on sale that you will never use? What do you think about that decision?

Don’t judge yourself. The idea is to develop an understanding of why you spend money. If you can apply this awareness to your choices moving forward, you can start doing things differently. That could be using coupons, maximizing credit card rewards, avoiding waste, or cutting back on spending that doesn’t bring you joy.

2. Check in with money

If the thought of creating a budget or checking your bank balance brings fear to your heart, you are not alone. Unfortunately, no matter how good your intentions are, it will be difficult to achieve your goals if you don’t know where your money is going.

Tom Corley’s Wealth Habits Survey found that 96% of self-made millionaires balance their checkbook every month. There are many ways to check your finances, so find what works for you. For example, I like receiving messages from my banking app whenever money comes in or leaves my current account. Others might think it’s too much. It’s a good idea to schedule a regular financial check-up and set a calendar reminder so you don’t forget.

How to Track Your Spending in 2024

Here are some tips to make it easier to keep track of your money.

• Keep it simple. If you don’t like detailed spreadsheets, don’t create one. Try a budgeting app instead. If you don’t want to plan where to spend all of your income, consider a broader budgeting approach (such as the 50/30/20 rule).
• Make friends on a budget: The biggest change in my financial life happened when I stopped treating money management as a chore. Changing my mindset meant I started seeing it as a tool to help me sleep better and do the things I wanted to do. I stopped procrastinating. I’m even starting to enjoy it.
• Treat yourself: It doesn’t have to be extravagant, but promise yourself a coffee at your favorite cafe or a walk after you’ve paid off your credit cards or met your monthly savings goal.

3. Make regular investments

Almost all (95%) of the self-made millionaires Corley interviewed saved or invested 20% of their net income. If you don’t think you can invest 20% of your income, start with a smaller amount. Once you get into the habit, you can always work upwards. If you can invest a portion of your income each month, the money will add up over time.

How to Invest in 2024

Open an investment account and set up automatic transfers so your money goes out a few days after you get paid. If you don’t want to research individual stocks, use index funds or exchange-traded funds to build a diverse portfolio of assets.

If your employer offers a 401(k) plan, contact your HR department to learn more about it. Not only is a 401(k)sa a tax-advantaged way to save for retirement, but some employers may also match your contributions. If a 401(k) isn’t an option, look into individual retirement accounts (IRAs) instead. The money you save through taxes is money you can use in retirement.

main points

The journey to becoming a millionaire is a marathon, not a sprint. So the habit that can make you a millionaire is finding little ways to save money every day. This will give you more money to invest, which is a proven way to build wealth over time.

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