Earning

7 smart money moves self-made millionaires make in challenging times

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The world is facing change like never before. Right now, we are navigating job losses, an unpredictable stock market, and uncertainty all around.

People are worried about their money, and rightfully so. Most everyone is working to minimize their losses, while others are doing whatever they can to pay their monthly expenditures. Everyone is in a different financial situation, of course, but there are some strategies that most everyone can benefit from. 

I've interviewed and studied more than 1,300 self-made millionaires for 36 years. Here some of the things I've watched them do over the years that can help anyone in these challenging times.

They look for opportunity

In times of chaos like those we are facing now, most people start making decisions about money from fear and scarcity. Take a step back and reframe your thinking. People who are self-made understand that with uncertainty comes opportunity. 

How can you approach money the same way? Start by shifting your core beliefs about your finances and looking at them through a lens of freedom, possibility, and abundance. Ask yourself, even with this new set of circumstances, what are you able to do right now? This will ground you in an objective reality to avoid making decisions based on emotion.

They focus on identifying and solving problems

Many people have been forced to take a pay cut or have lost their jobs altogether because of Covid-19. Now is the time to start acting entrepreneurial. At the heart of every big fortune was someone who solved a problem.

In unprecedented times like we are seeing now, there are new problems that need solving. If there is something that has been troubling you, or that you have been seeing friends or family struggle with, it's more than likely that others are feeling the same.

If you use your natural talents and abilities to find the solutions, you can find new ways to earn money. Start with a side hustle and see how it can grow. 

Steve Siebold is the author of "How Money Works."
Courtesy Steve Siebold

They remember that everything is negotiable 

Right now, if you're trying to figure out how you're going to pay your mortgage or make your car payment this month, you're not alone. Times are tough for a lot of us, and your lenders know they have to work with you. In this Covid-19 world in which we are living, everything is negotiable.

Reach out to anyone you pay monthly including banks, credit card companies, landlords, and car title holders, and work with them to reduce or defer your payments until this is behind us. 

They inventory their assets and sell for cash

If you've been waiting to clean out your closets and garage, now is the time to do so — and you can make some money in the process. Items you no longer need can be sold for cash, like toys, garden tools, used furniture, sporting equipment, and more.

Try selling on online platforms like eBay or other outlets and keep the cash in a safe place in case you need it.   

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They draw on their networks

Now is the time to leverage your contacts, acquaintances, former employers, and anyone who can help you, whether you have lost your job, are in need of additional work and projects, or who might be able to make an introduction to someone who is in need of what you have to offer. 

The world's wealthiest people aren't afraid to reach out, and neither should you, especially if you are able to help other people make connections during these difficult times.

They prepare for the turnaround

Times are tough now but, though it's hard to imagine, it's not going to be like this forever. In fact, when the turnaround hits, hold on tight: It may take some time, but businesses are going to come back in full swing, even if how they do business may have shifted.

The self-made wealthy are getting ready. They are buying stocks on sale now because the recovery will bring higher prices. They are purchasing assets that are deeply discounted, like rental properties and businesses that will come back strong. If they have any stagnant or stale assets, they are moving them to cash.

With the resources you have at your disposal, ask yourself, "How you can I prepare to make the most of the turnaround?"

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They are constantly learning about how money works

Some medical experts are predicting a second round of Covid-19 in the fall. Now is the time to learn how money really works and get prepared. Reevaluate your financial situation and study the basics of personal finance. If you are working with a financial professional, reach out and make sure you have things in order, and have the flexibility and knowledge to navigate the unknown.

It's a scary time for everyone, especially when we're talking about serious issues like making ends meet, keeping a roof over your head, and having enough to retire

The good news, however, is even if it doesn't seem like it, there are still plenty of steps you can take to control your money, minimize your losses, and even realize gains in the months ahead.

We will get through this, and right now, we all must be bold and find the courage to take charge of our financial situations.

Steve Siebold is the author of the book "How Money Works: Stop Being a Sucker." He is a self-made millionaire who has interviewed more than 1,300 of the world's wealthiest people over the last 36 years. Learn more at Howmoneyworks.com.

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