Keep track of your money

You can’t earn more and invest if you have no idea where your money is coming from or where it’s going towards. A good millionaire mindset to have is to track your expenses, income and your cash flow. I recommend tracking it weekly so you can get a better look. You can’t improve what you don’t know. If you don’t know where you’re losing money, then you will never be able to stop it. Know how much income you are earning and where your income is coming from so you can come up with ideas to earn more.

An important skill that most millionaires have is financial literacy. This means getting comfortable with financial statements, cash flow statements and income statements. Don’t simply know the terms and the definitions but train yourself to analyze them in detail. Look at statements and understand what is happening and why. You should also familiarize yourself with the tax laws in your area. Know what gets taxed and what the tax bracket percentages are. You can’t save money on taxes if you don’t understand the game. Best way to start your education on financial literacy is reading books on accounting and finance. Afterwards, to understand it better and put it into practice, pick a couple large companies that are traded on the stock exchange and read the company financial reports. Sometimes what you learn and what you use are different. It’s important to get both educational knowledge and real life experience.