You are the CEO of your own money.
You are the one in charge. You make all the important decisions. When it comes to your paperback, you are the most senior manager and you are the one overseeing everything.
That’s good and bad. The bad thing is that you bear all of the responsibility and it is nobody else’s fault. The good thing is that you have the power to do things better for yourself.
It is time for you to embrace this power. It is time to take decisive control of your finances. Here are six ways to act like a CEO:
1. Get a good return on your investment
A good CEO focuses on “ROI – Return on Investment.
You want to invest your time and money in things that will make a profit. To do this, apple-to-apple comparisons must be carried out: Should i do this or should i do this?
For example: if you already have an emergency fund, you should really invest it instead of putting money in a savings account for a rainy day. This is the best way to grow your money.
With interest rates this low, a savings account pays you next to no interest these days. However, according to the US Securities & Exchange Commission, an investment in the stock market has produced an average, inflation-adjusted annual return of 7%.
Not sure where to start? Beginners like Robin Hood because there are no commission fees and you can buy and sell stocks for free – with no limits. It is also very easy to use.
2. Stay in the black area
A smart CEO is always looking for ways to cut unnecessary costs and improve the bottom line.
For example, do you have credit on your credit cards? Then you are almost certainly spending too much money on interest. Credit cards charge notoriously high interest rates.
With the help of a free website called AmOneYou could wipe out all of your credit card debt by the end of the week.
You get a low-interest loan that allows you to pay off all of your credit cards at once. Interest rates start at 3.99% – well below the 20% or more you are likely to pay with your credit card company. That could save you thousands in the long run, which is a solid move for the CEO.
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3. Pay first
CEOs make sure they get paid. That is really not a question. No matter what, CEOs make sure they do Receive. Paid.
Of course, you have to do all of your duties and pay all of your bills, etc. However, you also need to make sure that you take care of yourself and your own financial needs.
Invest for your retirement. Build a nice fat retirement fund through a 401 (k) or an IRA.
Also, make sure you have an emergency fund in place – a stash of easily accessible cash worth six months’ worth in case you unexpectedly lose your job.
With a Aspiration accountYou can earn up to 16 times the average interest on your savings and up to 5% cashback on debit card purchases.
4. Have a mission statement
This is another way of saying, “Don’t forget your long-term goals.” When making a money decision, ask yourself, “Does this get me closer to my goal?”
You should take certain steps towards your goal. That’s what a CEO would do.
For example, one of your long-term goals may be to own your own home. Or maybe you want to drive a better car.
In this case, you need a good credit score. This has a huge impact on how much interest you pay on a mortgage or car loan. That could easily add up to tens of thousands of dollars over the life of a mortgage.
If you want to get your credit back on track – or even if it’s on the right track and you want to improve it – use a free website called Credit sesame. Within two minutes, you’ll have access to your creditworthiness and personalized tips to improve it. You can even spot bugs that are holding you back (every fifth report has one).
Would you like to check it out yourself? It’s free and only takes about 90 seconds Log In.
5. Focus on the interests of the stakeholders
“Stakeholder” is a big buzzword in the corporate world. In business terms, stakeholders are people who have an interest in the company, such as investors, employees, and regular customers.
In your personal life, your stakeholders are your family members.
Have you thought about how to do without your income after you leave? How are they going to pay the bills? Send children through school? Now is a good time to start planning for the future by purchasing term life insurance.
You are probably thinking: I don’t have the time or money for it. However, your application can take minutes – and you can call your family up to $ 1 million at a company called To lend.
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6. Innovate and pivot
CEOs love this stuff. This is a big step for the CEO. They always talk about innovating, moving with the times, and moving to the next profitable thing that’s just around the corner.
You can also innovate in your personal financial life. Just try a money-saving step that you have never looked at before. You will be surprised how much money you save!
For example, you are likely to be shopping more online than you used to be. (Most of us are.) Wouldn’t it be nice if you got a warning when you are about to overpay?
That’s it free service does. Just add it to your browser for free. Before you check out, other sites including Walmart, eBay, and others will be checked to see if your item is available for a cheaper price. Plus, you can get coupon codes, set up price drop notifications, and even view the item’s price history.
Let’s say you buy a new TV and assume you’ve found the best price. Here you will get a pop-up window letting you know if this particular TV is available elsewhere for a cheaper price. If coupon codes are available, they will be automatically applied to your order.
Last year it saved people $ 160 million.
You can get started with just a few clicks Check if you are overpaying online.
Remember: you are the CEO of your money. It is your responsibility, other than yours.
Mike Brassfield ([email protected]) is a senior writer at The Penny Hoarder. He’s not a CEO, but he does believe in being strategic with your money.
This article originally appeared on www.thepennyhoarder.com