Millionaires are made up of three mains sorts. There are those that were born rich and have inherited their wealth, there are self-made millionaires who have got to that point through hard work, and there are those that have won the money on the lotto. However, whichever they are, there are ways they hang onto their money, and some of their tips might be useful for the rest of us.

Although we do not have the amount of money they have, sometimes doing things on a much smaller scale can still help our financial situation.

Save More Money

Saving can be addictive. If money is tight, start with a very small amount, but put that in a savings account on a regular basis. As you see it start to grow, you can become impatient and want it to grow faster. You may be surprised how quickly it can build into a very nice amount, and the interest the bank pays you helps. Of course, the more you save the more you earn, and your interest will earn interest for you too.

Get into the habit of saving as early as you can, and encourage your children to do the same. Then at birthdays, Christmas and any other time they are gifted money, they have the choice of spending it or adding it to their savings account.

Opening children’s savings accounts is also a good way to start teaching them about money. Regardless of your financial situation, understanding the value of money is a vital lesson they all need to learn.

Check out these top ideas for starting to save more money.

Writing A Will

With wishing to appear morbid, this is a crucial task that everyone should do. It is not expensive but means that whatever you leave behind goes to the people you want, and not to who the state dictates.

Estate tax planning sounds as though it is something just for rich people, but with more homes being owned in the US than ever before, it is something everyone should take advice on. There are ways of making sure that there is as little tax as possible paid, and your will is complied with without any problems for your loved ones.

Understanding what to need to do to get a will together.

Stop The Waste

Take a close look at your finances to see where your wealth may be being wasted. A quick run through your bank statements will show most payments, and if there are any you can do with, stop them now.

This could be a service agreement for a piece of equipment you no longer have, or a subscription to a club you no longer use. They might not be much money individually, but if you add them up for a month, and then calculate it for a year, you may be surprised by just how much money you are wasting. That could be in your savings account instead, or be used to clear a debt perhaps.

Alternately, you could be using that money to purchase a good life insurance policy that will take care of your loved ones financially in the event of your death.

How to stop wasting your money and killing your wealth.

Don’t Lend Money

Of course, no one expects you to see a family member or close friend in trouble or go without for the sake of a few dollars, but as a general rule, you should not lend money to people. This might seem harsh, but you would be surprised how much money some millionaires have lost because they lent money to people, and no most of them just say no.

You may upset the person you are refusing, but if they cannot understand your motives, you are better off without them in your life. One thing several millionaires told a recent study, is that when you lend people money, you not only stand the chance of losing it but also of losing the friendship of the borrower. When they realize they cannot pay you back, they start to steer clear of you and after a while, you just don’t see them anymore.

Have An Emergency Fund

None of us know when disaster will strike, and having some money behind you specifically in case this happens can make the whole situation easier to cope with.

You should open an account especially for it, and keep it separate from all other savings and bank accounts. The ideal is to try and build up six months living expenses so that no matter what happens you have time to adjust and to get your finances sorted properly.

Of course, that is impossible for some people to do as they need their money to live from payday to payday, but if over a period of time you can but even one month’s living expenses in an emergency fund, you will be very glad that you did is something awful goes wrong.

Even millionaires keep some money to one side for such eventualities, as it is something that all their financial advisers say they should do.

Use these tips to help you begin building your emergency fund.

Investments

Investments are not something that just rich people do. You can invest quite small amounts so that your money is working for you. Buying stocks and shares, investing in government bonds or some sort of insurance plan can make you more money than leaving it sitting around doing nothing.

However, before you invest in anything you should get advice from the professionals in these matters. They are qualified and regulated to give you the best advice, and often, they only make money of you do so it is their interests to make sure your investments are as successful as possible.

Want to start investing? Read this before you invest your money!

Taking Care of Your Money

The only way to amass any amount of money is to take care of it. Do be an emotional spender that buys extra food because you think the stores will run out next week, or buy things that might be useful one day but then sit at the back of a cupboard and never get used. Buy what you need, spend only if you have to. When working out your budget, allow an amount for nights out, holidays, birthdays and other special occasions and stick to it.

Taking care of your money will mean that you have less financial stress, and will hopefully build a savings account that is worth having.