4. Cut Down Expenditures to as Few as Possible
The average person is going to think this is tied in with saving, but it isn’t. Saving your money is setting aside an amount that you save. Cutting down on how much you spend is an entirely different thing.
The mistake the average person makes is that they don’t go through their expenditures with a fine-tooth comb. Every single month you should sit down and calculate how much money you make. You also need to figure out where every penny went.
Debit cards are a great way to do this because you can go online and see exactly how much you spent. It’s much more difficult to keep tabs on how much every transaction cost you if you’re paying in cash.
After you figure out how much you’re spending, now it’s time to find ways to cut back. Are you spending too much money on utilities? The answer might be to turn off the air conditioner in the summer and go outside for a breath of fresh air.
Wear a sweater in the winter and save money by turning the heat down a little. You might be surprised by how much money you can save by buying things in bulk.
Even making small changes like buying a more gas efficient car can help you save money. Remember, the goal is to live as well as you can while spending as little as possible.
3. Invest Your Money in Record-Breaking Stocking
It’s possible to get to a million dollars only by saving. The main problem with that is, it’s going to take a long time. You’ll be well into your 50s or later if you save small amounts beginning when you’re in your 20s. Smart investors can eye stocks that are going to go up.
Don’t think that because you weren’t around when a stock was at rock bottom that there’s no room for it to go up. Take a look at shares of companies such as Apple and McDonalds, and you’ll see there is still quite a bit of room for growth left.
There are always companies who are on an upward trend that is worth investing your money in. Going the safe route here isn’t always best because it will cause you to gain tiny amounts over long periods.
There’s a risk, but also a big reward when investing in high growth stocks. If you invest in a rock-solid company, then your risk is minimal. Apple isn’t going anywhere anytime soon, and there are hundreds of similar companies that you can invest in.
You are going to want to put as many eggs in one basket as you can. Your goal of reaching a million dollars means you’re going to have to take risks that others wouldn’t. However, those risks are marginalized by the stocks you choose.
If you feel confident that a stock is going to shoot for the stars, then put all your money into it. Sometimes you have to bet big to get where you want in life.