Dollar bills in a jar.Many of us want to be millionaires. According to Phillip J. Müller, the journey to becoming a millionaire and having absolute financial freedom is all about having the right mentality. He also puts it clear that financial freedom is all about conscious freedom. People tend to think that rich people’s lives are full of spending sprees, as depicted in many TV shows and movies, which is the opposite of reality.
Phillip J. Müller’s book describes that the only thing that holds anyone from becoming a millionaire is their idea of what it means to be one. If anyone can master the skill of thinking like a millionaire, nothing can stop you.
According to Müller, adopting a conscious consumer mentality involves thinking about whether you need to spend on a certain consumption and a cheaper alternative. Having a good credit standing and saving and controlling your impulses are the key milestones in acquiring a millionaire mindset. The following are some tips that you can approach to becoming rich.
1. Saving is essential.
Adopting a saving lifestyle and applying it all the time is essential. Saving is not necessarily putting aside money, but it also involves deciding what to spend your money and to which extent. Some scenarios include:
- Deciding not to buy your 8th sneaker when it’s logical that you will probably use one or two
- Cooking food at home instead of buying fast food
- Spending a few cents to make your coffee instead of spending a few dollars in a bar for the same.
Gradually adopting this type of mentality and making it a lifestyle is a huge step towards financial freedom. Look at your day-to-day spending of life and work on where you can minimize or do away with it entirely.
2. Avoid any debt
Debt is like slavery, and it’s a great financial freedom suppressor. Do not go for what you don’t need or things you can’t afford. It’s a great step that will ensure you avoid a lot of hurdles.
If you want a big screen in your home, but you can’t afford it, avoid the temptation of taking a loan and think you can afford it. Debts are always associated with the pleasure that comes with a purchase, and when this creeps out, it’s an addiction. To control this, you can leave a note in your wallet that says, — do I need this? After, that question will start making sense in your life.
3. If you do have debt, don’t bury your head in the sand.
If you already have existing debt, do not rush to pay it off; rather, take stock out of that situation. According to Muller, you should note all the debts you have, then calculate the amount that you can comfortably pay each month.
Based on these calculations, figure out the number of months you need to clear off. Müller recommended using half of your money to pay debts and saving the other half. Many advisors recommend paying off the debt before saving, but Müller disagrees.
3. Actively contact creditors
The best practice, according to muller, is ensuring you contact your creditors before they can reach you. This will ensure that you are different compared to other debtors. The point is that if you are not able to pay, ensure you communicate earlier and openly instead of waiting until they ask for explanations for non-payment.
Suppose you are honest about your financial situation with your creditors. In that case, they will probably give you a counteroffer, which includes extending the repayment period or even waiving accrued interest.
4. Avoid fake status symbols
If you think being a millionaire is all about flaunting an expensive car or showing off an expensive watch, you’re wrong. Having a millionaire’s mind has nothing to do with all this; the goal is conscious consumption, not big spending. It is prudent to spend a little instead of a vacation that uses three months of your salary.
5. Exercise self-control and be aware of the temptation
Every individual has their temptations; if you can’t control yourself about buying a certain product, stay away from the shop. If you are an online person, especially from apps, you can temporarily block them until you control yourself.
Financial management and decisions are easy tasks for everyone. That is why you need an expert who can guide you by offering some of the best strategies to handle your financial situation. For more tips on inflation and how it impacts your financial future, reach out to TetonPines Financial today.