10 Quick Steps That’ll Have You Managing Your Money Like A Millionaire
Life would be a whole lot easier if someone would just Venmo us $1 million, but unfortunately the chance of that happening is, well, probably zero. (Venmo doesn’t allow transactions that large anyway.)
But even though our chances of becoming a millionaire are slim, we can still manage our money like one. No, we’re not going to tell you how to buy hundreds of shares of Apple stock. Or how to pick out the perfect yacht.
These are simple money moves any normal, non-millionaire person can make today. Each tip can get you closer to achieving your big goals.
Take a look:
1. Never Buy Anything Without Earning Rewards
The ultra-wealthy have a lot of money, so, naturally, they tend to spend a lot of money. But millionaires are millionaires for a reason… they’re savvy enough to know how to take advantage of rewards and perks.
One of our favorite ways to earn rewards? Use a free app called Fetch Rewards to get paid when you share your crumpled receipts.
Fetch partners with tons of brands to give you points for every grocery receipt you share. Then you can exchange them for Visa gift cards.
And it’s perfect for those of us who don’t want to put a ton of work into this. All you have to do is send Fetch a photo of your receipt, and it does everything for you. No scanning barcodes or searching for offers — and you can use it with any grocery receipt.
When you download the app, use the code PENNY to get a bonus towards your first gift card.
Not so bad for a useless receipt, right?
2. Have the Same Credit Score as a Millionaire — Without The Bank Account
Good news for us “normal” folk: Your credit score has nothing to do with your income. Yes, having more money might mean you don’t have to take out loans or buy groceries on credit. But, in reality, you and me could have the same credit score as, say, a certain someone who owns Amazon. Heck, ours could be even better.
So if you’re looking to get your credit score back on track — or even if it is on track and you want to bump it up — try using a free website called Credit Sesame.
Within two minutes, you’ll get access to your credit score, any debt-carrying accounts and a handful of personalized tips to improve your score. You’ll even be able to spot any errors holding you back (one in five reports have one).
James Cooper, of Atlanta, used Credit Sesame to raise his credit score nearly 300 points in six months.* “They showed me the ins and outs — how to dot the I’s and cross the T’s,” he said.
Getting your free credit score takes less than two minutes
3. Secure $1 Million in Life Insurance for Just $5/Month
Did you know you can leave your family $1 million — without being a millionaire? Yup, life insurance could really help your family get by without your income.
Now’s a good time to start planning for the future by securing a life insurance policy.
You’re probably thinking: I don’t have the time or money for that. But your application shouldn’t take more than about five minutes — and you could leave your family $1 million by spending $5 a month on life insurance with a company called Bestow.
You can change or cancel your plan at any time. Plus, the security of knowing your family is taken care of is priceless.
If you’re under the age of 54 and want to get a fast life insurance quote without a medical exam, pushy sales calls or even getting up from the couch, get a free quote from Bestow.
4. Use up Your Entire Paycheck
No, we’re not talking about going to Whole Foods and buying out its fancy cheese supply (though that’s the first thing we’d do if we had $1 million). Instead, we’re talking about creating a zero-based budget, a budget that finds a place for your every dollar.
You’ll want to start by tracking a month of expenses. How much do you (or don’t you) have remaining? Then, consider your financial goals. Do you want to save money? Invest money? Pay off debt?
Work backward to cut your expenses until you can achieve that goal. It might take some patience, but it’ll pay off.
5. Let This Website Shave Money off Your Credit Card Debt
Truth be told, your credit card company is probably ripping you off with insane rates — yup, it’s getting rich off of you. (Ahem, now we know how some of these millionaires are made.)
But there are other, nicer companies that’ll help you out, including a website called Upstart.
Here’s how it works: Upstart will loan you up to $50,000 to cover your credit card tab. Use that loan to pay off your debt, then make monthly payments to repay the loan.
At first it might sound like you’re just moving your debt around, but the key is to find a loan with better interest rates or lower monthly payments.
Upstart won’t make you stand in line or call a bank. And if you’re worried you won’t qualify, it’s free to check online. It takes just five minutes, and it could save you thousands of dollars. Totally worth it.
Unlike traditional underwriting models that use only the common FICO scoring model, Upstart’s technology looks at factors like your education and employment history to determine your creditworthiness (though it does require a 620 credit score).
6. Become Your Own Boss — and Earn up to $60 an Hour
Many folks become millionaires by venturing out on their own and starting their own businesses. Sure would be nice… so why not try the same? And work from home?
An online course called Bookkeeper Business Launch will teach you how to start and run your own bookkeeping business. And, nope! You don’t have to have a CPA to be successful. In fact, all you really need are decent computer skills and a passion for helping business owners tackle real-world problems — the course will teach you the rest.
We chatted with Daniel Honan, who launched his own virtual bookkeeping business after taking the course. He launched his business in about three months and estimated he’d gross about $50,000 in his first year.
Get started with your first three classes for free.
7. Invest 15 Cents Into the Stock Market
It’s no secret millionaires invest in the stock market, but you don’t have to be a millionaire to get your investing start.
And, yeah, we know what you’re thinking: 15 cents? How’s that going to do me any good? Well, you’ve got to start somewhere, and that leftover change from your morning coffee and evening grocery haul could turn into more than $1,000.
That’s what happened when Penny Hoarder reader Jeremy Kolodziej opened an investment account with Acorns. The app’s round-up feature bumps each of your purchases up to the nearest dollar and puts the spare change into the stock market, which helped him mindlessly save $1,076 in about 20 months.
“It’s a virtual coin jar,” he says. “You don’t even think about it.” He used the spare change to pay for two vacations.
Plus, Acorns invested the money for him, allowing him to grow his savings — without studying stock prices or managing trades.
The app is $1 a month for balances under $1 million, and you’ll get a $5 bonus when you sign up.
8. See If You’re Eligible For These Little-Known Homeowners Insurance Discounts
You might be surprised by how many millionaires actually live fairly frugal lives. Why spend more on necessities than you have to? Especially when it can be so easy to score discounts.
One of the easiest bills you can probably cut down on is homeowners insurance.
Do you have a fire extinguisher in your home? A deadbolt? Smoke detectors? Most people don’t know this, but these simple security measures could actually get you special discounts on your homeowners insurance.
Want to see how much you could save? A company called Policygenius will help you compare prices and get a new policy (and even cancel your old one!). And, yes, it knows all about these discounts.
It takes a few minutes to answer some questions about yourself and your home, then a Policygenius representative will deliver you a handful of quotes straight to your inbox tomorrow. From there, you can ask any questions via email or phone and sign up.
By shopping around and applying these discounts, Policygenius users save an average of $690 a year on homeowners insurance. Yup — and it only takes a few minutes to request your free quotes.
9. Grow Your Wealth By Learning From Others
One of the best ways to get your money in order? Learning from others! These could be the millionaires themselves, personal finance experts or real-life people who’ve had success. Search the internet for blogs and websites, listen to podcasts and read books.
Here are a few of our favorite resources (ahem, besides ourselves):
- “How to Money” podcast
- “The Total Money Makeover” by Dave Ramsey
- “The Side Hustle Show” podcast
- “Rich Dad, Poor Dad” by Robert Kiyosaki
- “The Money Nerds” podcast
- “The Richest Man in Babylon” by George Samuel
10. Save up to $865 a Year on Car Insurance — for the Same Coverage
Millionaire or not, no one wants to overpay any of their bills. So when was the last time you shopped around for car insurance? Was it more than six months ago?
If so, you’re probably overpaying — by hundreds of dollars. Yep. Experts say you should compare rates twice a year to get the best deal.
Twice a year? Yeah, we don’t want to do that either.
A service called Gabi does all the shopping for you to find cheaper insurance — with the same coverage and deductibles you already have. And it saves customers an average of $865 a year.
You don’t have to fill out any forms. Just link your existing insurance account and enter your driver’s licence, and it will start looking for cheaper coverage.
Plus, after you sign up, Gabi will keep looking for savings. No more shopping.
*Like Buitureria, 60% of Credit Sesame members see an increase in their credit score; 50% see at least a 10-point increase, and 20% see at least a 50-point increase after 180 days.
Credit Sesame does not guarantee any of these results, and some may even see a decrease in their credit score. Any score improvement is the result of many factors, including paying bills on time, keeping credit balances low, avoiding unnecessary inquiries, appropriate financial planning and developing better credit habits.