When we don’t protect our money it is like giving it away or worse — letting it get stolen. That’s why we must act and think like millionaires and protect our money to make sure that it stays where it belongs.
Someone is always trying to get in our pockets…
Someone is always trying to sell us something in order and get their piece of our pie.
We can’t even relax in our own homes and watch your favorite TV show without someone trying to persuade us to buy their products.
But regardless of all of this, here is one thing that millionaires have learned to do—they protect their money.
I’m not talking about simply putting your money in a safe and locking it away. I’m talking about having the mindset to guard your money to be aware of where it is going and why.
Here are two practical ways to make sure you are protecting your money:
Protect your money from spending
Every day we face the constant challenge to buy something, and if we are not careful, unprotected money will fly right into the hands of advertisers. Challenge yourself and track very single dime that you spend for 30 days. Once you do this, you will be able to see where your money is going and determine if your spending was reasonable, needed, or frivolous.
Protect your money from being over taxed
No one looks forward to paying taxes, but it’s just something that we have to do. But just because we have to pay taxes, that doesn’t mean that we should be giving Uncle Sam more than what he is allotted. For example, when you signed up for your 401k, you may have selected that your contributions to be taken out pre-tax. This means that you will only be taxed on the remaining money. You’ll have the advantage of paying fewer taxes today, but when it’s time to collect your retirement funds, you will have to pay an income tax on it…all because you didn’t when you first contributed the money. Did you think that Uncle Sam was going to really let you get away with that?
On top of this, you’ll be subjected to whatever income tax laws and rates that Congress decides on. Taxes may or may not be higher at your retirement than they were when you were in the workforce.
In this instance, being taxed less sounds like a good idea for today, but you’ll have to pay tomorrow.
Millionaires make money decisions for the future, and not for the convenience of the day.
It’s always a good thing to get with a financial professional to make sure that you are taking advantage of tax breaks and abiding within the laws while maximizing your cash. There are so many things that you can do to guard your money, when you get in the mindset that your money is valuable and should be protected you’ll be making wealth-building money decisions just like a millionaire would.