You are the CEO of your own money.
You are the person in charge. You make all major decisions. When it comes to your wallet, you are the highest-level executive and you are the one who oversees everything.
This is good and bad. The bad part is that you have all the responsibilities and no one else can blame. The good part is that you have the ability to make yourself better.
It’s time to embrace this power. It’s time to take charge of your finances decisively. Here are six ways to act like a CEO:
1. Get a good return on investment
A good CEO focuses on “ROI-return on investment”.
You want to invest your time and money in things that can bring profit. This involves making an apple-to-apple comparison: Should I do this or should I do that?
For example: If you already have an emergency fund, instead of depositing money in a savings account for emergencies, it is better to invest. This is the best way to increase money.
Because interest rates are so low, today’s savings account can pay you almost zero interest. However, according to data from the US Securities and Exchange Commission, the average annual return on investment in the stock market is 7%, adjusted for inflation.
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2. Keep it black
Smart CEOs are always looking for ways to reduce unnecessary expenses and improve their bottom line.
For example, do you have a balance on your credit card? Then you will almost certainly spend too much money on interest. Credit cards charge well-known high interest rates.
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It will provide you with low-interest loans and pay off all your credit cards in one go. Its interest rate starts at 3.99%-well below the 20% or more you might pay a credit card company. In the long run, this can save you thousands of dollars. This is a reliable CEO move.
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3. Pay first
The CEO ensures that they are paid. This is really no problem.Regardless, CEOs want to make sure they get. Paid.
Of course, you obviously need to fulfill all responsibilities and pay all bills, etc. However, you must also make sure to take care of yourself and your financial needs.
Invest in your retirement. Build a generous retirement fund through 401(k) or IRA.
In addition, please make sure you have an emergency fund-an easily accessible fund equivalent to six months’ salary, in case you lose your job unexpectedly.
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4. Have a mission statement
This is another way of saying, “Don’t forget your long-term goals.” When you make a financial decision, ask yourself: “Does this bring me closer to my goals?”
You should take concrete steps towards your goals. This is what the CEO will 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.
If so, you will need a good credit score. This will have a significant impact on the interest you pay for your mortgage or auto loan. This can easily add up to tens of thousands of dollars over the entire term of the mortgage.
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5. Pay attention to the interests of stakeholders
“Stakeholder” is a buzzword in the corporate world. In business, stakeholders are people who are interested in the company, such as investors, employees, and repeat customers.
In your personal life, your stakeholders are your family.
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6. Innovation and pivot
CEOs love these things. This is a major move by the CEO. They are always talking about promoting innovation, keeping up with the times, and turning to the next profitable thing that is coming.
You can also innovate in your personal financial life. Just try a money-saving measure that you have never bothered before. You may be surprised at how much money you saved!
For example, you may shop online more than before. (Most of us are.) Wouldn’t it be great if you get an alert when you have to pay more?
This is exactly this Free service do. Just add it to your browser for free, and before you check out, it will check other websites, including Walmart, eBay, and others, to see if your products have cheaper prices. In addition, you can get coupon codes, set price drop reminders, and even view the price history of items.
Suppose you want to buy a new TV, and suppose you have found the best price. At this time, you will see a pop-up window to let you know if the TV can be bought at a cheaper price elsewhere. If there are any coupon codes available, they will also be automatically applied to your order.
Last year, this saved people $160 million.
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Remember: you are the CEO of your money. This is not anyone’s responsibility, but yours.
Mike Brasfield ([email protected]) Is the senior writer of The Penny Hoarder. He is not the CEO, but he believes in making a strategic investment in your funds.