1. Associate money with freedom, not with things. The more you have on the bank account, the more you feel secure. You have more choices, you are relaxed and people see this.
2. Marry the right person – this one is critical! If you marry a woman who is desperate if she doesn’t have new Gucci, Prada etc… shoes every 2 months or guy who has to buy Harley Davidson but you are still paying your college debt off, you are never ever going to be even close to getting rich!
3. Train yourself to be unhappy if you don’t save a specific amount of money every month. I know this sounds harsh but once you get used to save let’s say $500 every month , you will start making choices and choose life style which will make you save enough.
4. Don’t be “penny wise – dollar stupid.” If you need a lawyer, tax advisor, medical help, teacher etc.. don’t think you can get superior quality with inferior money. Sometimes you have to pay a bit in order to be sure you are in the right hands. Don’t compromise your health, security or future prospects to save little money.
5. Recognize good opportunities. This one is extremely hard but let me give you an example. A very good friend of mine worked with me in a company. We had similar salaries. He now earns 2-3 times more and is working 40% less. How is this possible? He is a smart guy and he realized that one particular field of our job is getting “hot” during the last couple of years. He did a little research and realized , all big company wants is someone who knows how to do a thing , they don’t care if you are working for Company X they just want someone to do the job. He then started working as a consultant and literally started earning next month 2 times more with 40% less time. This way of thinking can save you a decade of saving.
6. Don’t buy a house just because it is a “natural thing to do.” There is probably nothing that will block you more than paying half of your salary to live in a “dream house” and spend other half to pay off your college debt. This will make you hate your house and you will envy people who seem to live in a small house or rent apartment but are much happier than you.
7. Don’t listen to the majority, especially coworkers. Everyone is confused and very few people have basic understanding of economy. This is the reason why they are workers and not entrepreneurs and business owners. For them, money is anti-depressant. After grueling hours and unfulfilling carriers they buy cars, house(s), jewelry to feel better about themselves and their job. They compete with each other who has more style and more “money.” Under the surface they are just a paycheck from bankruptcy and really this is the most stupid way you can live your life. If you can’t be relaxed when you buy things you are poor.
8. Don’t buy things with diminishing returns if you don’t need them — e.g. car worth $25 000 is going to be worth $15 000 in couple of years. Just calculate how much you have to work to save this evaporating $10 000 and then calculate is it worth it. Calculate all the gas, equipment, maintenance etc.. you need to keep your car functioning.
9. Try to save $100 a month. Now try to earn additional $100 a month. You will realize how hard actually is to make money and how easy is to save.
10. Always learn new things. This will keep you busy and can bring you additional income.
11. Everything you need to learn is free on internet. Don’t be lazy and don’t pay expensive courses for something you can learn easily by yourself.
12. Never buy a thing the first day you see it. Wait couple of days, you will see in majority of cases you don’t need it, you just “want it” for whatever reason.
13. Realize that all gadgets, smartphones, laptops, TVs will be a big pile of junk in 3-5 years. They (manufacturers) try to make you feel inferior if you don’t have new IPad, IPhone, HD hyper real TV, fastest internet, newest McAir etc…. Focus on what you plan to use them for. Surf the internet? Then why do you need newest lap top?
14. Think like a business owner not like employee. Always think “Is this really worth the money?”
15. Think about every dollar as investing opportunity, rather than something you use to pay bills and buy things.