Anyone can become a millionaire if he learns to think like a millionaire, says author Phillip J. Müller.
To become rich, regardless of salary, one must adopt the mentality of conscious consumption: To think if this is something he really needs before each purchase and if he decides that he needs it, then to explore if there is a cheaper one. alternative. Saving, avoiding borrowing, controlling impulsive movements are necessary elements to become rich, says Müller in his book, Geldrichtig.
According to the author, there are six rules that must be followed by anyone who wants to get rich.
1. Saving is necessary
Start saving immediately and apply the principle of saving in all circumstances. Müller himself, for example, never eats outside. “A lot of people do not realize how much money you can save if you choose to bring food and drink from home to the office,” he says. The next step, in his view, is to review his subscriptions to Spotify and Netflix.
2. Avoid all debts
Do not buy anything if you do not have the money to pay for it. “You want a smartphone, but you do not have the money to buy it? “Then do not buy it,” said Müller. Many debts accumulate when people become addicted to the instant gratification they get when making a purchase. “Leave a note in your wallet that says – Do I really need this? In time, you will begin to ask yourself this question, and then you will no longer need the note, ”he explains.
3. If you have debts, do not “hide” from them
Write down all your debts on a piece of paper. Next, think of an amount you could pay each month and calculate, based on that amount, how many months you will need to repay the debts. Müller recommends that you use half your money to pay off your debts and save the other half. Many recommend paying off debts before you start saving, but Müller disagrees. “The point is to think like a rich man. “Your wealth, as much as it is, increases when you save,” he explains.
4. Get in touch with your creditors
Müller recommends that you contact your creditors before they contact you. “It will set you apart from most debtors,” he says. If you can not pay, say it openly instead of waiting for them to call you and explain why you did not pay. If you talk honestly about your financial situation, the other party will probably make you a counter offer, such as extending the loan.
5. Avoid fake status symbols
When you think of a millionaire, you often imagine him driving an expensive car or wearing a watch that is worth more than your home. These status symbols have nothing to do with the millionaire’s mentality. The road to financial freedom goes through conscious consumption, not reckless spending. “Do you really need to spend 2 or 3 months’ wages to go on vacation to a faraway place when you can rest so much better somewhere closer?” Says Müller.
6. Gain self-control and avoid temptations
The temptation is different for everyone. If you can not control yourself at the discounts, then do not walk around the shops. If online shopping is your passion, then use special applications that temporarily block your access to online stores. Look for alternatives to the impulsive solutions that temptations offer you. If your mobile does not work, find out if you can fix it before buying a new one.
moneyreview
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