Wouldn’t it be great to be a millionaire and earn a seven-figure salary each year? What would you do with all that money?
Most of us dream of being able to buy whatever we want. Earning a millionaire’s wage would make a luxury lifestyle more affordable and we would probably never have to go to work again. We could simply deposit our millions into a savings account and live off the interest. But that’s not the only reason why some people dream of being extravagantly rich. They also crave that cash as it will provide them with fantastic financial security. They won’t ever have to worry about medical bills or paying for any emergencies that might crop up in life.
Wouldn’t it be great if we could also live with this level of security? Well, you might be surprised to hear that it is entirely possible, no matter how much you earn each year. As long as you are careful and sensible with your cash, you will be able to build up a nice little pot of savings in no time at all. And, as long as you make well-informed investment decisions, you will easily be able to make that money work for you. Eventually, your savings and investments could grow to a very healthy sum indeed!
Wondering how you can get to that point? You just need to use some of the same money strategies that the rich and famous have. You might think that you don’t really have to do much money management once your income and savings are over a certain amount. That really isn’t the case, though, as most millionaires need to be on the ball to ensure that they aren’t losing any cash in any way or that their savings aren’t inadvertently depreciating in value. So, ready to manage your money as if you were rich and famous yourself? Here are some of the best strategies you can adopt. You never know, they might help you make a pretty penny yourself!
Diversify Your Investment Portfolio
First of all, you need to think about diversifying your investment portfolio. This means that you need to invest your money in a few different sources. It will be much better protected when it is split across these different pots, so to speak. That’s because you won’t lose too much cash if only one of the investment does quite badly. For instance, if you invest in both property and some funds, it won’t matter if your funds start to depreciate slightly. That’s because your property investments will continue to do well and can help prop up your whole investment portfolio. However, had you only stuck to investing in funds, then you could stand to lose the bulk of your investments! So, if you are new to investing your money, you should take a look at the property news today as well as latest information on the stock market and other sources of investments. You can then figure out which are currently the most strongest, and you can then split your money across these different pots!
Look For Multiple Income Streams
It’s also a good idea to consider multiple income streams. This is possible even if you currently have a full-time job. And don’t worry - it doesn’t mean that you will need to find another part time job on top of your full-time one! In fact, the best way to go about this is to build up a passive income that you can manage around your regular work. There are quite a few ways to go about this in the modern world. For instance, you might want to start blogging. After a few months of regularly posting new articles and blog posts on your site, you will be able to try and monetize it. For instance, you will be able to offer advertising space and sponsored posts to brands and companies. Another great way to earn a second income is to set up an online shop on the likes of Etsy or eBay. No matter how you make some extra money alongside your full-time income, you will find that your overall financial situation will be greatly supported.
Use A Financial Advisor
Do you think that the rich and famous have got to where they are today because they are experts when it comes to money? Think again! Sure, some of them are savvy with their finances, but most of them just rely on the expert advice of their trusted financial advisor. Don’t worry; the majority of financial advisors aren’t too expensive to hire. They will only charge for the work that you ask them to do, so you don’t need to pay one a retainer. But it’s worth checking in with one every time you are considering a new investment. They will be able to look over your options and current financial situation and then advise you as which is the best one to go with at the minute. If you want, you can also hire your advisor to manage your investments for you so that you don’t always have to worry about them. Financial advisors can also help you apply for mortgages and find a pension, so you’re covered with all kinds of financial support!
Speculate To Accumulate
Have you already heard the saying that you need to speculate to accumulate? This is something that most millionaires live by. It makes sense if you think about it carefully - the more you invest, then the more you stand to make. That’s because you will have more in investments that will make you money. So, it makes sense to be confident with your investments and put in as much money as you can. Of course, that doesn’t mean that you need to always take big risks. There are lots of investments out there that are fairly safe and won’t leave you risking too much money. Take property, for instance. If you can afford to speculate in the property market, it is worth doing so, as you stand to make some strong returns in a market that is rarely volatile.
Go For Emerging Markets
While you don’t need to take risks with your money if you don’t want to, it might make sense to take a few small ones. Millionaires are quite good at taking risks. In fact, some of them are pros at finding the best new investments to make before everyone else jumps onto the bandwagon. For instance, you should consider investing some of your cash into emerging markets. This is the sector that is taken up by new industries and startups. If you have a keen eye for seeking out the best new markets that are opening up, then you stand the best chance of making some cash before everyone else rushes to invest in them as well. Generally speaking, most industries will make the best returns on your investments in their early stages while corporate investors are pushing a lot of cash into them. So, as you can see, it really does pay to get there early!
Don’t Forget Commodities
One investment that many people overlook is commodities. Commodities are physical assets that we use in our everyday life. For instance, coffee beans, wheat, and sugar are all big commodities as they are in such high demand around the world. Don’t worry, though, you don't have to start buying the commodities in wholesale and then sell them to make your profit. You can instead invest in the companies that manufacture and supply them. Commodities are always going to be in demand so are a very lucrative investment option. This is something that millionaires are very much aware of, and the majority of them have a number of commodity investments in their portfolio.
Chase The Interest
One mistake that most beginner investors make is that they don’t chase after interest. When you open a bank account, you will be told its interest rates. These will differ between the various banks, and each bank will also offer different interest rates on their various accounts. So, it makes sense to go for the bank account that offers the highest interest rate when you open a new one. However, don’t forget that these rates fluctuate and the banks are always bringing out new accounts with new rates. So, it’s always important to keep an eye on what the banks are doing and where you might be able to get a better rate of interest. If it looks like you might be better off moving your money to a new bank, don’t be afraid of doing so. Chasing the interest like this can help support your savings and make them work for you.
Don’t Be Impulsive
Even though millionaires can afford to buy whatever they want, they rarely do. They know that being impulsive could quickly eat into their savings and weaken their financial position. So, try not to be impulsive when it comes to your finances.
Hopefully, all of these strategies can help improve your own finances!