#1 Pay Yourself First
We've all heard it before and let's give credit where credit's due: Thanks David Bach! But how many of us have actually set up an auto-transfer from our paycheck, or even know how much to transfer? It sounds counter-intuitive, but you need to pay yourself each time you get paid. More specifically, you're paying an income to your future self.
#2 Don't Budget, Reverse Budget™
We HATE the word budget! Who wants to stick to a budget? It's such an arbitrary concept with no end goal other than to accumulate piles and piles of money at some unknown time in the future while feeling deprived today, no thank you. The way we think of budgeting may make a little more sense to you. We call it the negative budget and rich people have been doing it for years. Instead of starting with how much you can save, start by thinking of what you're trying to buy...and when. If it's a new car in 3 years or a new guitar in 3 months, back into what you should be saving by penning down your goals first. This creates much more satisfaction when you put those dollars away. Create a different savings account for each goal. CapitalONE 360 (formerly INGDirect) has an awesome platform to do this on. Also, we like that they offer a money market rate on your cash while it's accumulating. Might as well earn a few extra bucks while it's sitting there.
#3 Don't Act Rich, Be Rich
Also a concept that you're probably aware of. The key to becoming rich is discipline and living under your means. Don't be jealous of the girl at your office who shows up with new "Choos" or a Chanel bag, more than likely she spent all she has on it. Not to say we don't deserve to treat ourselves to nice things (that's the whole point, isn't it?), but having a plan in place so that you can splurge guilt-free or without the stress of knowing if you can come up with rent each month is just smart splurging. At Stash we call it being "recklessly responsible" and it's the #1 rich-people secret. Delayed gratification is not the same as deprivation. Life's a balance, right?
#4 Rely On Experts
Rich people are the world's best delegators. Why? Because above all they value their time. Leverage should be your best friend. Rather than focusing on what you DON'T know, spend time getting really good at what you do know (and makes lots of money doing it). Delegate the rest. Even though Google sometimes makes us think it, we can't all be experts at everything. Rich people know this and they don't waste time trying to be generalists. They are specialists at the thing that makes them the most money. I hear you, how am I supposed to hire someone when I can barely afford by day to day expenses. There's tons of free advice out there and even online videos. For the cost a salad at TheLittleBeet (just kidding....kind of), we offer monthly seminars (and there's always free beer). It's a good place to start. If you're ready for a more personalized plan, we offer a 2-hour intensive one-on-one session to give you total clarity on your financial situation complete with actionable steps so that the next time you join your friends for dinner at The NoMad, your wallet isn't regretting it the next morning.