You know, they have a national holiday for everything…and yes, there’s one for aspiring millionaires too. May 20 is Be A Millionaire Day, a day for you to be motivated to make some financial plans.
It’s not all that complicated to accumulate a million dollars. Simple, yes. But not easy for most of us. Spending is easy, saving is not. Isn’t there always something we need to pay for or buy? Of course. The typical American spends $1.22 for every dollar he/she earns, so it’s a paycheck-to-paycheck existence for many.
Several surveys indicate a majority of Americans have saved nothing, or very little, for things like an emergency expense, college/education, or retirement. In fact, the Employee Benefit Research Institute’s annual Retirement Confidence Survey indicates 6 out of 10 Americans have less than $50,000 saved for retirement.
What’s holding you back from saving a million? Chances are, it’s your lifestyle.
Very few of us make one major financial decision that sets up success or failure to be a millionaire. Instead, it’s our ordinary, day-to-day choices of how we spend a dollar. Choices quickly become habits, habits become a lifestyle. So, why not resolve to change a spending habit on “Be A Millionaire Day” and feather that savings nest egg? Here are a few habits to get started:
• Add to a savings account every month via an auto-deduction from your checking account. Pick an amount that works in your budget. No budget? Build a budget, baby…even small amounts add up! Check out several budgeting tools here.
• Open an investing account if you don’t have one. Review investments that make sense for you. Developing an investing habit puts you on the path to accumulate a bigger nest egg. Learn about investing and find good educational tools at iInvest.org.
• Start or add to a tax-deferred account like a 401k, Roth IRA or IRA (Individual Retirement Account). To decide if a Roth IRA or traditional IRA is for you, consider the pros and cons here.
• Pay off some debt, particularly student loans and/or credit cards. Eliminating some of the interest you pay on revolving debt is a great savings strategy. See more tips at the Feed the Pig site by the AICPA (American Institute of Certified Public Accountants).
• Build a financial team. If you don’t have a financial advisor, start looking for one you can trust. Pay attention to all those initials and designations on an advisor’s resume, and match the expertise to your needs. A good place to check out an advisor is Broker Check.
Start taking control of your finances today….Happy “Be A Millionaire Day!”