The Modern Observer Group

No matter what your definition of success, most of us want at least enough money to keep us from worrying about paying bills and be able to handle emergencies if they come up. Better still is enough to retire comfortably. However much money you define as your goal, interviews with self-made millionaires have revealed a five steps anyone can take to improve your financial situation.

1. Live Within Your Means: One thing all self-made millionaires agree on is that you have to live within your means. If you can’t afford it, don’t buy it. Don’t live in a home larger than you need. Don’t pay for tv channels you don’t watch. Take advantage of sales on things you do need. Ideally, you should live on no more than 70% of your income, but in places with high living costs or if you are saddled with high debt you may have to work your way down to that. Take advantage of warehouse clubs (like Costco or Sam’s Club), discount supermarkets (like Aldi), and sales at stores you regularly shop at.
2. Quality Over Quantity: When you do buy things, it is better to buy higher quality and less quantity. It is better to have one great suit than three cheap ones. The reasoning behind this is two-fold. Financially you will spend less on high quality items over the long run because they won’t need to be replaced as often. Psychologically the higher quality items  make you feel less like you’re scrimping and saving.
3. Invest: No one ever became a millionaire on their salary. Start with an interest-bearing savings account. When you have  put aside enough (even if you can only save a few dollars a month) start investing in stocks or mutual funds. While it may take you awhile to save up enough to use a financial adviser, you can start with services like RobinHood that allow you buy individual stocks with no commissions and no minimums. You can start with less than you think. As of this writing stocks like GE, Bank of America, and Ford are all available for less than $25 a share (I am not recommending you buy any of these. I am using them as examples of low-cost stocks). Before doing anything with stocks, research and talk to experts. As you grow your savings and portfolio, it is worth it to use a financial advisor.
4. Read: Keep up to date on what is going on in the world. Keep learning and improving your skills. The easiest way to do this is to read. Most experts recommend reading at least one book a month.
5. Network: Finally, your net worth can be improved by your network. Spend time with people who are where you want to be. They can bring you opportunities and help introduce you to people who can help you along your journey.

This is not a get rich quick plan. It takes time and effort. Sticking with these tips will improve your financial position over time.

For more ways to improve your life and business, talk to a Modern Observer Group Coach.