It’s no secret that having money skills can make you wealthy.
In fact, my net worth grew to seven figures after using several millionaire money skills.
And that’s exactly what I will show you in today’s article.
Here are 13 money skills that will make you wealthy.
1. Pay Yourself First
Paying yourself first is essential to build wealth.
Here’s how to do it…
First, you need to determine:
- How much to invest (e.g., $100)
- When to invest (e.g., Every Monday)
- Where to invest (e.g., S&P 500 index fund)
Once you’ve determined those 3 things, you’re ready to start paying yourself first.
Here’s the process:
- Deposit your paycheck
- Automate investments first
- Anything left over goes to bills
Simple.
This is how you pay yourself first.
2. Control Your Spending
Society tells you to:
- Spend
- Show off
- Consume
Instead, you should:
- Pay off bad debt
- Invest in yourself
- Buy appreciating assets
- Build up an emergency fund
- Build multiple income streams
Control your spending before your spending controls you.
3. Start a Side Hustle
The potential money you can make from a side hustle is unlimited.
In fact, 54% of Americans now have a side hustle.
Why the popularity?
Because your 9 to 5 could let you go at any moment and leave you with an income source.
That’s why it’s so essential to build a side hustle that could add an extra income stream.
So how do you start a side hustle?
Here’s the process:
- Invest in the Income Multiplier Course
- Study lessons 3.2 to 3.5 on how to start a side hustle
- Launch your side hustle
- Start collecting your side hustle income
- Continue working and building your side hustle
If you’re selling a service like consulting, you could earn an extra $2k+ per month.
Is this easier said than done?
Yes. But if it was easy, everyone would do it.
To be above average, do what the average won’t do.
4. Track Your Expenses
I met a client who didn’t track her expenses.
When we reviewed her finances, we found she was spending $35k+ at RESTAURANTS.
If you want to build wealth, track your expenses.
Here’s how to do it:
Review your spending from the last 3 months.
Categorize your expenses as:
- Needs
- Wants
- Wishes
Start reducing spending on wants and wishes.
5. Give a Purpose to Every Dollar
Millionaires give every dollar a purpose.
In other words, they don’t blindly spend every cent they earn.
Instead, they allocate their paycheck to the following:
- 529 plans
- Business accounts
- Retirement accounts
- Emergency savings fund
- Joint / Individual accounts
Then they go one step further by automating the process.
6. Prioritize Like the Rich
If you want to get rich, prioritize like the rich:
- 1st = Needs
- 2nd = Investments
- 3rd = Wants
So many rules of thumb say you should save 10% to 15% of your income.
If you want to be a millionaire, those rules of thumb will likely not cut it.
Instead, set your sights higher, so you save (and invest) around 50% to 80% of your gross annual income.
Think rich and act rich to grow rich.
7. Build an Emergency Fund
63% of Americans cannot afford a $500 emergency.
Having an emergency fund can save you from going into serious debt.
If you have a surprise expense, like a:
- Car repair
- House repair
- Medical emergency
Then you might have to take on bad debt to pay for that expense.
Instead, you can avoid taking on debt by using your emergency fund.
Do your future self a favor and save 3 to 6 months’ worth of living expenses.
Pro tip: If you want to earn passive income with your emergency fund…
Consider stashing your emergency fund in a high-yield savings account like the ones offered by Raisin.
With the current interest rates, you can get over 5% APY.
A 5% rate on $10,000 of cash would earn you $500.
For doing absolutely NOTHING.
8. Pay Off Bad Debt
Bad debt robs you of your freedom and makes it impossible to build wealth.
What is bad debt?
Bad debt = High-interest debt used for depreciating assets.
Some examples of bad debt include:
- Car loans
- Payday loans
- Credit card debt
Credit cards can be a double-edged sword.
Use credit cards wisely, because they can DRAIN your wealth.
If you can’t pay off your credit in full every month, you can’t afford your lifestyle.
9. Automate Your Investments
Automation keeps your life simple and gives you back your time.
How do you automate your investments?
By using a dollar cost averaging (DCA) strategy.
DCA is investing a set dollar amount on a regular and recurring basis.
For example:
- Amount: $100
- Frequency: Every Friday at 9:30 am ET
- Investment: S&P index fund
The best part?
Most modern investment platforms allow you to set up a DCA strategy.
DCA helps you become a disciplined investor by removing your emotions from the picture.
Out of sight, out of mind.
10. Grow Your Network
If you want to think like a millionaire, surround yourself with millionaires.
You can find millionaires in some of the following places:
- Your local university
- Your community events
- Your Chamber of Commerce
When you meet successful people, ask for their contact information or business cards.
Reach out to them to:
- Wish them happy holidays
- Wish them a happy birthday
- Ask them how their pet is doing
- Ask them about their recent vacation
Why should you put so much effort into keeping your network close?
Your network will be much more inclined to help you if you stay up to date with them.
Your network is your net worth.
11. Adopt Healthy Financial Habits
Building wealth comes down to habits.
So take note of how you treat $10.
Do you save/invest it?
Do you spend it on unnecessary things?
Changing your financial habits includes:
- Earning more
- Spending less
- Investing more
When you build healthy financial habits, you will struggle less in life.
Your habits have the power to change your life.
12. Choose Your Partner Carefully
Marrying the right person is the most important part of building wealth.
86% of millionaires are married – and 65% are still in their first marriage.
Your long-term partner could make or break your financial future.
Find someone who is:
- Frugal
- Mindful about money
- Aligned with your financial goals
A supportive spouse will be much easier than a partner working against you.
Find someone with a winning financial mindset.
13. Invest in Yourself
Benjamin Franklin once said:
“An investment in knowledge pays the best in interest.”
And it’s true.
When you invest in yourself, you get the highest ROI.
How to invest in yourself:
- Read books
- Take courses
- Exercise daily
- Listen to podcasts
The best investment you can make is in yourself.
If you’re ready to invest in yourself, consider enrolling in my Income Multiplier Course.
In this course, I’ll show you my proven 4-stage process to help you build multiple income streams that can earn you over $10,000 per month.
Closing Thoughts
If you want to become a millionaire, start using millionaire money skills.
The sooner you start, the sooner you will reach your goal.
Start today.
Your bank account will thank me later.
