Millionaire Money

Management Techniques
There are many money management guides out
there.

But here’s what makes this one different…

In my Wealth Management career, I’ve worked with:

● Self-made millionaires
● Decamillionaires ($10M+)
● High net worth millionaires ($100M+)

And even 7-figure earners (who were just entering

their 40s).

Now, I’m going to show you the strategies these

wealthy individuals use to manage money.

Let’s dive right in.

The Importance of Money

Management
When you talk about your financial situation, how do
you feel?
● Upset
 ● Scared
● Anxious
● Nervous

Or, you may simply not even want to talk about your
financial situation – following the motto “ignorance is
bliss.”

If you feel heart palpitations even thinking about

your financial situation – then you are not alone.

Managing your money can be a tough job.

And it’s probably not fun to think about – especially if

you fall into that 78% category of people who are
living paycheck to paycheck.
Imagine if one of the following situations happens to
you:
● A flat tire
● A vet expense
● A hospital emergency

Could you afford these unforeseen expenses without

flinching?

There really is no wonder that much of our daily

stress comes from money – especially after reading
these statistics.

It’s time to take back control over your financial life –

whether you earn $30,000 or $300,000.
The simple rule in life is this: You can’t become
wealthy without a plan.

When you create a plan, dealing with financial

matters won’t be stressful – believe me.

It’s your life and your money, so make sure you take
the time, to read through this, and apply the
strategies I suggest here to make your life better.

15 Ways to Manage Your

Money Like a Millionaire
I want to caution you that the hardest part of
managing your money like a millionaire is not
starting.

It’s continuing the course.

If you want to become a millionaire, then you need to

remember that it takes:
● Time
● Patience
● Confidence
● Consistency

You won’t see success overnight.

But you will see success in the future if you stay
committed and consistently follow my 15-step guide.

Let’s get started.

1. Create a Financial Inventory

The first step to managing your money like a
millionaire – is to figure out how much money you
have.

This could probably be the scariest part of the entire

process because this is where you figure out if you:
● Have a $0 net worth
● Have a positive net worth
● Have a negative net worth

A net worth is a snapshot of your financial position

at a specific period in time. This could be a negative
net worth, a $0 net worth, or a positive net worth.

I’ve detailed a few things below:

Net Worth What it Means

Negative Net
You owe more than you own
Worth
 You don’t owe anything – but you don’t
$0 Net Worth
own anything either

Positive Net
You own more than you owe
Worth

To figure out where you currently stand, I’d suggest

downloading the free net worth tracker offered by
Personal Capital.

This net worth tracker is free, it’s super easy to use

and it incorporates a few other free financial tools
offered – including the savings planner and
retirement planner tools.

Pro Tip: If you’re creating your net worth statement

for the first time, it’s so important to be brutally
honest with yourself. This is not the time to
sugarcoat things.

Your net worth statement will be the foundation we

need to build the path toward financial
independence.

The most important thing here is to write down your

current financial situation – don’t just let it sit in your
head (where numbers can become skewed).
2. Develop Your Financial Blueprint
You can’t expect to manage your money like a
millionaire if you don’t have a plan.

If you don’t have a plan, you could:

● Fall victim to old habits
● Fail to follow healthy habits
● Lose sight of your financial vision

If you find yourself to be the person who easily

forgets or tends to slack off on things (be honest
with yourself here), then you 100% need a budget.

That’s right. I said the “b word.”

It’s very simple to create a budget for yourself – and I

find it fun because it’s like I’m the CFO of my own
household expenses.

Some things to remember when creating a budget:

● Take note of your basic living expenses
● Take note of any unnecessary expenses
● Make a true effort to stop spending on
unnecessary costs

Pro Tip: If you are new to budgeting, I would highly

suggest tracking every cent (I’m serious) of your
expenses for the last 2 to 3 months. Get an idea of
how much you are spending over a period of time.
If you’re ready to step-up and manage money like a
millionaire, I’d suggest starting a budget using You
Need a Budget.

Remember this: Be brutally honest with yourself, or

this process will be in vain.

3. Understand Your “Why”

I think this step – understanding your “why” – is
extremely underrated when it comes to managing
money like a millionaire.

Here’s my question for you:

How can you go through your financial life without

knowing why you are saving and investing?

Below are my why’s:

● My family
● Building a life I love
● Leaving a lasting legacy
● Creating lasting memories

My ultimate “why” is my family.

I know that my family is the reason why I am where I

am now.
It’s time I repay them the favor and build a lasting
legacy – that’s why I am not going to allow myself to
fall into debt again or spend more than I earn.

Pro Tip: When you know your “why” and the reason
behind why you are saving, investing, paying off
debt, etc. it will be 1,000 times easier to keep going
instead of giving up.

On the contrary, if you’re just saving to save and just

investing to invest – without a real purpose – then
giving up will be much easier… and possibly
permanent.

4. Build Your Emergency Savings

Fund
If COVID has taught you one thing – it should be
keeping an emergency savings fund.

Typically speaking, you’d want your emergency

savings fund to encompass the following:
● Cash
● Readily accessible
● 3 to 6 months’ worth of living expenses

And – just like the name says – an emergency

savings fund should be used ONLY for emergencies,
which could include:
● A flat tire
 ● A leaky roof
● A health emergency

The goal should be this: For starters, try saving

$1,000 in your emergency savings fund.

If you feel like saving 3 to 6 months’ worth of living

expenses is too complicated at this point, given your
income, then it might make sense to simply aim for
$1,000 of emergency savings.

Pro Tip: Sometimes it’s best to physically separate

your emergency savings fund account from your
regular checking and/or savings account. It would
make sense to keep your emergency savings fund in
a high-yield savings account to earn a little extra
money.

Let’s say you’re stashing about $1,000 in your

high-yield emergency savings fund.

Check out how much money you can earn – without

moving a finger – on a high-yield savings account.

Initial
$10,0
Investm
00
ent

Investm
30
ent Time
Years
Frame
 Interest 0.60
Rate %

Ending
$11,9
Portfolio
66
Value

$1,96
Profit
6

So how do you find a good high-yield savings

account?

To get the most competitive rates, check out Raisin.

And Raisin is free… there’s my favorite word again!

5. Open Investment Accounts

If your ultimate goal is to build and maintain wealth
well into your retirement, it is very important to
understand the importance – and power – of
investing.

Investing, thanks to compound interest and dollar

cost averaging, is how you can help your money
grow over decades.
The point is not how much money you earn currently
– I don’t care if you are earning $30,000 or $300,000
per year – to build long-term wealth, you have to
start.

You can start investing with:

● $5 a day
● $10 a week
● $500 a month

It doesn’t matter how much you use to begin your

investing journey – what matters is that you start
and continue investing.

Don’t ever stop investing (or withdraw your invested

money, which would defeat the purpose of this
step).

If you’re a beginner investor and don’t necessarily

have $100s to invest – yet – then Acorns may make
the most sense for your situation.

Below are some Acorns fast facts:

Minimum to Open Account $0

Minimum Investment $5

Fractional Shares? Yes

Fees $1 per month for the Lite plan

- Traditional IRA
Accounts
- Checking account

If you’re a serious investor and intend to invest

$100’s of dollars over a certain period of time, then it
might make sense to consider opening an account
with M1 Finance.

M1 Finance is an investment app for the investor

who is looking to grow their investments
substantially.

Check out some M1 fast facts:

Minimum to Open Account $0

Minimum Investment $100

Fractional Shares? Yes

Fees $0

- Joint
- Trusts
Accounts
- SEP IRA
- Roth IRA
 - Rollover IRA
- Traditional IRA
- Individual Account

In the end, what matters is simply starting the

investing journey.

Although investing $5 per day may not sound like

much, in 4 decades from now, you’ll be thankful that
you started when you did.

6. Review Your Spending

There is no way you can manage money like a
millionaire without tracking your progress and
reviewing where you currently are.

One of the key traits to success is creating and more

importantly reviewing your long-term goals
consistently.
When was the last time you checked in, on your
progress?

If the answer is more than 24 hours ago, it’s time to

review your current financial situation – especially
how much you have been spending.

Of course, a budget is going to be the easiest way to

help you monitor your spending habits.

If you haven’t created a budget yet, then I’d suggest

checking out the customized budgeting app YNAB.

As you review your daily spending habits, it’s

important to keep in mind the following:
● Your needs (basic living expenses)
● Your wants (eating out, clothing shopping, etc.)
● Your wishes (things or experiences you’d like to
buy, like vacations)

Anything that is not considered a “need” or a basic

living expense (such as health care insurance costs,
rent/mortgage, groceries, utilities, etc.), I would cut
out of my budget.

There is a lot of money to be saved on monthly,

recurring expenses as well:
● TV bills
● Wifi bills
● Cellphone bills
● Satellite radio bills
There are services available to you, such as Rocket
Money, that reach out on your behalf to these
servicing companies and negotiate lower prices for
you.

7. Review Your Income

It’s always a good idea to review your income –
especially if you are a freelancer or own your own
business.

I feel like I have a running tally in my mind of how

much money earn each day or week, but sometimes
that number can be vastly skewed.

You can review your income either through a

budgeting app or you can track your own income –
for free – using an excel spreadsheet.

Yes, reviewing your income and expenses daily may

be tiresome.

However, monitoring your finances doesn’t have to

take hours on end.

In fact, if you have your budget under control, it

could take you a few minutes to determine whether
your finances are on track.
8. Increase Your Income
You can boost your income in several ways.
For example, by living frugally or investing in income
generating assets.

In this scenario, we are going to consider how you

can increase your income.

Some options could include:

● Starting a side hustle
● Building passive income
● Investing in alternative investments

Start increasing your income today.

Your future self will thank you.

9. Pay off High-Interest Debt

So many people suffer from debt today.
Debt can virtually rob you of your future self.

Debt can take away your dreams of:

● Retirement
● Living stress-free
● Saving for the future
● Leaving a legacy for your family

In fact, debt can make people feel trapped and force

people to change their life goals.

For example, debt may be a factor why people can’t:

● Start families
● Afford homes
● Take vacations

And what’s even sadder is that most college

graduates start their adult lives in over $30,000 of
student debt.

So to help you save for retirement and build a better

tomorrow, it’s essential to pay off high-interest debt.

10. Review Your Credit Score

Reviewing your credit score is imperative to
understanding your current situation versus where
you want to be in the future.
Your credit score is a 3-digit number that could
make or break your financial future – especially as it
relates to interest rates or whether you are approved
for loans.

Below is a rule of thumb:

The higher your credit score The lower your interest rate

And if your interest rate is lower, that means you

save more money.

The great thing is that your credit score is not

permanent.

You can always boost your credit score if you follow

some strategies, such as paying your bills on time,
becoming an authorized user, and more.

11. Prepare a Sinking Fund

One of my go-to strategies for managing money is to
prepare a sinking fund for anticipated, major future
expenses.

A sinking fund is a strategic money management

technique where you periodically set aside money in
a separate savings account to pay for an anticipated
future expenses.
For example, if you know you’ll have to pay for:
● A new car
● A new roof
● College costs
● Life insurance bills

Then it might be a good idea to set aside a small

portion of your paycheck in a separate, high-yield
savings account (to maximize your money) to pay for
these future, anticipated expenses.

The worst thing that can happen is this:

You know you have to pay for future expenses, you

fail to save for them, and then you’re left scrambling
to find the cash to pay for these expenses. Ouch.

To avoid the scenario, I’d suggest doing this:

● Open your sinking fund using a high-yield
savings account
● Set aside a portion of your paycheck toward a
sinking fund
● Regularly move money into your sinking fund

Raisin offers competitive high-interest rates, given

the market conditions, which could help you earn a
little bit of extra money on your stashed sinking fund
cash.
12. Save for Retirement
Although it might seem like retirement is far away,
it’s really important to start saving and investing for
your retirement, beginning today.

Why is it important you start saving and investing for

your retirement today?

That’s because of the power of compound interest.

Compound Interest Defined:

Compound interest is when your money earns you

more money. In other words, your original
contribution (the principal) earns interest and the
interest earns interest.

Although you may not see a major impact on your

investments in year 1 – or even year 9 – you will start
seeing your total investment balance increase over
the decades, if you continue to:
● Invest consistently
● Don’t withdraw money
● Don’t allow emotions to control your investments

Keep in mind that there are many different types of

investment and retirement accounts out there to
manage money like the pros.

Some of those plans include:

 ● 401(k)s
● Roth IRAs
● Joint accounts
● Traditional IRAs
● Individual accounts

If you do not have access to employer-sponsored

retirement plans, like 401(k)s, 403(b)s or 457(b)s, for
instance, then you can always open your own
investment account.

Pro Tip: Although most suggest to save and invest

around 10% to 15% of annual gross income for
retirement, I typically recommend to save and invest
between 20% to 30% of your gross annual income
for retirement.

In my eyes, the more you save today (even if you’re

not earning 6-figures), the better your retirement will
look tomorrow.

And if you are just not able to save 20% of your

gross annual income this year – that’s perfectly OK.

My suggestion is to simply start somewhere and

increase your savings/investing rate by 1% per year.

A gradual increase in your savings/investing rate will

help you reach your ultimate goal, just possibly a
little longer.
The most important takeaway here is to simply start.
13. Purchase Cost-Efficient Life
Insurance
Life insurance can be expensive – and necessary.

If you haven’t taken the time to review your life

insurance situation and you are currently in similar
situations like below:
● You have or plan to have a family
● You have a spouse who earns less than you
● You have someone who is depending on your
income

Then it certainly is time to consider purchasing life

insurance.

My favorite life insurance – especially for young

professionals – is term life insurance.

Term life insurance is the cheapest and simplest

form of life insurance. Term life insurance can cover
you for a specific term, typically between 10 to 30
years, after which your term expires and your
insurance coverage evaporates.

However, if you’re a young professional and are

considering forming a family in the future then I
highly recommend for you to choose term life
insurance.
You could obtain term life coverage of $1,000,000,
for example, which may only cost you around $60
per month depending on your health status and
several other factors.

My go-to term life insurance marketplace is

Everyday Life.

Everyday Life is a marketplace – which means that

they don’t just represent 1 life insurance company.

Instead, when you request a quote, you can receive

quotes from several different – and high-quality – life
insurance companies.

14. Learn As Much As You Can

Knowledge is power – in any aspect of life.

So, the more you understand how to:

● Save money
● Invest money
● Build a network

The better your future chances of success will be.

The more I learn about personal finance – and trust

me, the learning process never stops – the better I
can evaluate my current financial situation and make
adjustments as needed.
With this statistic in mind, I would suggest that to
manage money like the pros, you also have to keep
educating yourself like the pros.

This means:
● Read books
● Listen to podcasts
● Learn from mentors
● Take online courses

Udemy is an excellent resource to learn the things

you wished you were taught in the classroom from
leaders around the world.

Udemy is an online platform that offers the following:

● 65 languages
● 183,000 courses
● 70,000 instructors
● 40 million students

Learn as much as you can, every single day, to help

you master your personal financial situation.
The more you learn from others – both from their
successes and their failures – the more time, energy
and money you can potentially save.

15. Start Today

To manage money like a pro, you don’t need to be
overwhelmed.

In fact, when you do the heavy lifting:

● Reviewing your budget
● Reviewing your net worth
● Automating your investments
● Setting up an emergency savings fund

The rest is actually pretty easy.

It’s just so important to monitor your finances

regularly – and never lose sight of your financial
goals, be it to pay off debt or to build a nest egg to
retire early, etc.

Once you master the art of managing your money

like a millionaire, you’ll be able to:
● Pay off debt
● Save for retirement
● Leave a lasting family legacy
● Free up time to do the things you want to do
But none of that will happen if you don’t start – and
don’t consistently monitor your efforts.

Make sure to begin and implement your plan today.

The Bottom Line

With a simple plan of action, you have the power to
turn around your financial situation for the better.

Your financial picture is only as difficult and stressful

as you make it.

If you decide to look the other way, and neglect your

finances, you may be in for a rude awakening.

Instead, take some time – 30 minutes every week for

example – to sit down and review your financial
status.

Those 30 minutes you spend reviewing your:

● Budget
● Income
● Savings
● Spending
● Investing

Could save you $1,000s and a lot of time.

Now that you read through this post and gathered
some actionable ideas… it’s actually time to start.

"Starting can be the most difficult but most

important part of the process."

If you want to follow in the footsteps of the wealthy

then your first steps should include implementing
these suggestions above.

Anyone can manage their money with success.

It’s going to take time, effort, and consistently

showing up.

Your bank accounts will thank me later.