Some of today’s millionaires and billionaires had a leg up in life thanks to generational wealth. Others started from the ground up and reached success. Often, these individuals are referred to as “self-made,” and they have some money habits in common. Whether you want to become an entrepreneur or simply grow and protect your money, you can take a page from the strategy book of today’s wealthy to give your financial well-being a boost.
5 millionaire money habits to steal
1. Put savings on autopilot
A crucial factor in wealth building is earning more than you spend, making saving an essential part of the equation. While you can make one-off transfers to a savings account, there are automatic, hands-off approaches to saving that you should consider. The first is to set up automatic monthly transfers through your financial institution’s online banking or mobile banking app. You’ll know exactly how much money is coming in and how long it’ll take to reach a savings goal. Another option is to set up payroll deductions to ensure you’re saving for retirement consistently.
People who found financial success don’t usually take shots in the dark. This doesn’t mean they avoid risk, they strategize and plan the financial moves they make. You should mirror this intentional approach for your own financial well-being. Doing so may help you avoid pitfalls along your journey.
For example, neglecting to strategize before applying for a mortgage may impact the loan terms and rates you’re offered. There are steps you should take, such as checking your credit score and taking the time to improve it if needed, that will benefit you in the long-term.
3. Keep your finger on the pulse
One of the easiest ways to grow your money is to reevaluate your budget and pinpoint any spending categories you can cut back in. Successful millionaires live within their means and avoid splurging on things they don’t need. For example, they may keep a dependable used car instead of replacing it with something flashier (and more expensive!).
Use an app like Money Management to see where your money is going. And, before making a large purchase, consider if it’s a want or a need.
4. Use your resources
Just because today’s self-made millionaires didn’t come from money doesn’t mean they didn’t have help along the way, and that shouldn’t take away from their success. They had to use the tools and resources available to them, accept guidance from mentors, and seek funding for their initiatives. You yourself should remain open to a helping hand when striving for your own version of success.
A financial advisor can help you chart a course to reach goals and avoid pitfalls along the way. Their resources, expertise, and strategies are available to you as a client. Going this route is a fantastic option if you feel you need additional guidance while planning for the future.
Tip: General Electric Credit Union (GECU) is the best Credit Union in Cincinnati because we’re more focused on opening doors of opportunity for our members – not profits. That’s why we give our members access to free resources like on-demand webinars, financial guidance from the Credit Union, and new blog content published weekly. Plus, Investment Services available through CUSO Financial Services, L.P. (CFS).1
5. Prioritize debt payoff
High-interest debt can snowball out of control. That’s why it’s important to prioritize debt payoff. You can accomplish this by not carrying over a balance on high-interest credit cards and committing a percentage of your monthly income to your debt obligations.
While money isn’t everything, it can provide stability, potentially lower stress, and put certain dreams and luxuries in reach. As a GECU member, you’ll have access to a wealth of products and services designed to help you grow your money and develop good money habits, including:
- Certificates.2 These fixed-term accounts take your initial deposit and reward you with a constant rate of return until its maturity date. GECU offers term options ranging from three months to five years. Open with a minimum deposit of $500.
- Bump Certificates.3 Take advantage of the rising rate environment with a Bump Certificate. You’ll have the option to “bump” to a higher annual percentage yield (APY) during the certificate’s maturity term.
- Financial guidance. Your financial situation and goals are unique. A Credit Union team member will get to know you and provide tailored resources and advice.
- Money Market Accounts. Thrive Money Market4 keeps your money liquid as you save and benefit from the interest earned. And our Individual Retirement Account5 (IRA) Money Market is a tax-advantaged account that’ll set you up for the future.
- Investment Services. Available through CUSO Financial Services, L.P. (CFS).1