Wednesday, February 25, 2015

15 Money Tips to Make you Rich in 2015

1. Become your own CFO

You can’t fix what you don’t know, so the first step is becoming completely aware of your finances and where your money is going. As soon as you start to understand your current situation in detail, you will be able to identify leaks and simple solutions that will help get you on your way. Nobody cares more about your finances than you do.
2. Go on a diet
I’m not talking about what you eat. Identify one expense that isn’t helping you achieve your goals, and cut it out for 30 days.
3. Be selfish
Be selfish and take care of yourself first, and then you can have more flexibility to take care of others. The problem is that so many of us put others first and then aren’t able to help ourselves.
4. Be selfless.
Although you want to be selfish with your time and money at first, you also want to be selfless with your attitude. By doing so, more money shows up in return.
5. Improve your credit score.
Most of life’s biggest expenses are purchased on credit. It’s important to start to take care of it now because there is going to be a situation in the future where you’ll wish you had. The way to improve your credit score again starts with awareness. Get your free report each year from AnnualCreditReport.com and find out if there are any items that are directly hurting your score (which you can get for free at Credit KarmaCredit Sesame, or Credit.com). Address those now and you’ll save yourself many thousands in the future.
6. Define what true wealth means for you
Money is an important tool that makes all of these other things much easier, but it shouldn’t necessarily be the goal in and of itself. Realize this and you will ultimately create your dream life much sooner.
7. Automate your money
The key with your finances is to make it as easy as possible on yourself. The best way to do this is to automate your finances as much as possible. What this means is that as soon as money comes in, it is dispersed to your other accounts automatically.
8. Add another income stream
If you want to make 2015 your most lucrative year yet, your best bet is likely to add another source of income.
9. Focus on passive and residual income
There is only so much time in the day, so it’s hard to build wealth quickly when you’re trading your time for money. Instead, the wealthy focus on building income streams where they can get paid over and over again for their work by putting their business or money to work for them. Work hard, but also work smart, and you’ll much sooner find the freedom you dream of.
10. Get a library card
For very cheap or even free, you can get access to the most brilliant and inspiring people of all-time. Investing in yourself is the best investment you can make, and by reading, you are doing exactly that.
11. Make your investments boring
“Investing should be more like watching paint dry or watching grass grow. If you want excitement, take $800 and go to Las Vegas.” – Paul Samuelson
12. Track your progress
It doesn’t matter how much money you make. It doesn’t even matter how much you spend. What does matter is how much you keep. Every month, track your net worth.  With this focus, you can ultimately make the greatest impact on your finances.
13. Cut out 10%
Even the most frugal people can find 10% of their expenses to cut. If you then take that 10% and invest it in yourself and in your future via training, paying off debt, or putting it towards vehicles that make you money like investing or starting a business, you’ll be much better off.
14. Hang out with rich people
So, if you have one thing on your 2015 to-do list, it should be to raise the quality of your peer group. This will have a domino effect on every other area of your life.
15. Reduce your goals
Most people don’t even create goals, but those that do often go to the extreme and create too many goals. The ultra-successful, however, are great at simplifying their mission and creating a single challenge in front of them at any given time.