How to Manage Your Money Like a Millionaire

By Angela Monroe - March 11, 2020

If you have bad credit, dreams of acting like a millionaire might seem like a very distant possibility. Don’t worry though – there are lots of steps you can take to start improving your bad credit score and getting on the way to a better financial state. Manage your money like a millionaire and you might just see things improving quicker than you’d thought possible.

Having a bad credit score doesn’t have to mean you can never take out a loan again. There are lots of ways you can improve your credit rating and get on the road to financial success again. It will take determination and perseverance but it’s certainly possible.

Managing your money like a millionaire

If you’ve got bad credit, it’s unlikely that you’ve got millions of dollars in the bank. This doesn’t mean that you can’t start to use the successful tips and strategies that millionaires use to look after their money and make their funds grow. Even with a bad credit score, manage your money properly and you’re taking the first steps to change your situation.

  • Save money automatically

    Lots of millionaires invest automatically using apps and other investment strategies. Apply this idea to saving and you could be on the way to improving your bad credit score.

    As soon as your monthly income hits your bank account, make sure you save as much as you can automatically by sending it into a separate account where you can’t spend it. By making this an automatic process, you won’t have the chance to spend it or get tempted to use it.

  • Start small

    Don’t forget that most millionaires didn’t start off wealthy. Take small steps and be patient. Even if you’re just saving a few dollars a day, this will add up over the course of a year. Improving a bad credit score can take time and you shouldn’t expect changes to happen overnight. The key is simply to make the step to starting in the first place.

  • Ask for help

    No one expects you to be able to manage your money like a millionaire without any help. Whether it’s reading books or listening to podcasts and online tutorials, or seeking expert help through an advisor don’t be afraid to seek assistance when it comes to improving your bad credit score. If you know there are elements of the financial process that you’re not good at, identify these and get help.

  • Put money in property

    We’re not asking you to buy up a load of mansions like a millionaire, but consider how you can best invest the money that you do have. If you’ve got a bad credit score but still have a sizeable deposit, consider getting a home loan with a specialised lender. Many people worry that a bad credit score means that they can’t own a home – this isn’t true, but it does mean you need to find a lender who specialises in people with bad credit.

  • Live within your means

    This might sound simple, and unlike something that a millionaire would have to think about but it’s a basic step that you can take today. Don’t spend more than you earn and really think about how much you can feasibly afford to splash out. Living within your means is one of the easiest ways to manage your money like a millionaire and avoid damaging your bad credit score by mounting up debt. Try to avoid spending on credit cards and consolidate any debt that you currently have.

  • Look for the best deals

    A lot of millionaires are very careful when it comes to spending – they’re not all driving around in fast cars and drinking champagne. You should always take a cautious approach to your spending and protect your money wherever possible. This could mean cutting down on luxury expenses – or switching your utilities to find a better deal. Be savvy and always search for ways to save money on everyday items.

  • Get the right loans for you

    Just because you have a bad credit score, it doesn’t mean that you have to accept loans with extortionate interest rates and unfair loan terms. Finding the right loan with bad credit may take a bit longer and you could be more restricted by the offers available, but find the right lender and things will fall into place. Many millionaires still have loans – they just know how to find the right ones for them to suit their individual needs.

  • Don’t give up

    If you have bad credit, you’ve probably experienced rejections from lenders in the past. This can be disillusioning but don’t give up – improving your credit score is possible and you always have a second chance to get yourself back on track. Set yourself manageable goals that you can aim for and never give up – the end results will be worth it!

From bad credit to millionaire status

Once you start researching the stories behind many millionaires you’ll learn that there are so many ways to reach financial success. If you currently can’t see a way out of the bad credit cycle, don’t give up and speak to a lender who specialises in helping people with bad credit.

There’s no guarantee you’ll become a millionaire, but you don’t have to live with a bad credit score long term and taking action is the best way to start the process. Good Luck!

Angela Monroe
Angela Monroe is the Community Manager at The Positive Group, specialising in giving people the information that they need when they need it, and putting you on the path to a fair financial future. She has 8 years of experience in helping Australians find the right finance solutions, and regularly contributes articles to empower Australians with the knowledge they need to become financially healthy.

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