It’s common knowledge that money can’t buy all things, like happiness. But, it’s hard to ignore (and also not envy) the lavish lifestyles of the rich and famous. From expensive cars to beautiful homes, it appears that they have it all. When you think of a millionaire, what comes to mind? They probably never worry about debt, right? Wrong. Believe it or not, you actually have more in common with them than you think. Budgeting and saving are still a large part of accumulating wealth, and the wealthy just know how to do it better. Here is how you can live like a millionaire (without going broke):
Know the difference between net worth and income
Just because your income may be at the multi-level million mark does not mean your net worth is as well. Net worth is when your assets total more in value than your debts or liabilities. True (and smart) millionaires have very little debt, which allows them to also have more financial freedom. And, when investing in assets, choose ones that will put money in your pocket, not depreciate in value and cost you more over time.
Realize time is money
Time is money, thus, you should create more time in your life. What is costing you not only more time but also happiness? Where can you make cuts? And, what can you use this newfound time for to increase your revenue? Not just that, but you need to be wise regarding with whom you choose to spend your time. The wealthy know their time is valuable. Surround yourself with people you love and who love you back (like your family), and remove the toxicity from your life. Negative people keep you from moving forward. When you are able to focus on happiness, you can be more constructive in your life.
Network
It is amazing what you are able to do and where you are able to go when you network. Plus, networking is great (and arguably necessary) for advancing your career.
In addition, if you are always daydreaming about traveling to Thailand or somewhere in Europe, it is more than possible to do without a millionaire income. Not only are there several ways to travel cheap, you can create opportunities for awesome experiences by building a rapport with affluent people. If you would like to offer your services or freelance for a luxury business, for example, you may want to pitch actually using their facilities to do so or in exchange for a free feature on your own publication. There are many ways to do this without spending too much money or time. You just have to start thinking outside of the box and not be afraid to ask.
Get rid of debt
Some financial gurus argue that it is a misconception that cars should be considered an asset due to their depreciation over time and the maintenance costs that go in them. By purchasing a modest vehicle instead, you reduce the amount and length of time you’ll have another loan. Little steps like these can limit the accumulation of debt in your life.
One way to ensure that you reduce your debt is to save more than you spend. While this may be a no-brainer, many still do not follow through with this. Put at least 25% of your paycheck into savings each month in addition to making an effort to chip away at your bills each month. Focus on the credit card debt first, which has the highest interest rates, then work your way down.
Stay productive
Instead of spending time binging on Netflix marathons (as wonderful as that can be on a lazy Sunday afternoon), spend more time learning a new trade or skill that can actually make you more money. Use the internet to develop passive streams of income rather than to browse Facebook for hours. Remember that whole time is money thing? Yeah, we aren’t kidding. Did you know Jay Leno worked two jobs prior to hosting The Tonight Show and used one income for savings and one for spending? By using some spare time to make more money and save it since his youth, he will be sitting pretty for a long time.
Choose experiences over things
You can have experiences like the rich and famous do by choosing them over things. Big flat screen televisions, Ferrari’s, and lavish homes are great, but they hold you back, especially if they cause you to live paycheck to paycheck. When you are too busy trying to impress others with what you have, you limit yourself from seeing and doing new things. If you decide to splurge, choose experiences. Memories are much more valuable over time than tangible items anyway.
Change your mindset to live like a millionaire
Most of it all comes down to a mindset. Know what’s real and what’s fake. Those without money tend to fantasize about the lifestyles of the rich, not realizing that much of it is actually all a show. Spend less time dreaming and more time taking action on your finances.
Live like a millionaire by acting like one. The truth is that most millionaires can’t actually afford the lifestyles that are portrayed in the media. So, in summary, the wealthy know how to save, budget, invest, and live within their means. They understand how to make their money work for them. And, in 2017, you can too.
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