• Make a budget.  You knew this one was coming.  This is the best way to really manage your expenses.  Start with how much money you have coming in every month, then list your expenses.  Include all of your bills, of course, but don’t forget to account for your morning latte, monthly magazine, and Friday dinner with friends every week.
• Avoid spending money on things you don’t really need.  When you make your budget, you’ll see where you can, or should, cut back.  Stick to it.
• Avoid being charged pointless fees.  Try not to use ATMs if possible.  Make sure your bank or credit card company isn’t charging you unnecessary fees.  If they are, insist that they be removed.
• Set up a savings account with direct deposit.  This will help you easily set aside some extra money.  It’s important to pay yourself first, even if it’s only a few dollars.  And if it never passes through your fingers, you’ll never miss it—you’ll just instinctively budget around it.  Whether you use the savings as an emergency fund or an entertainment fund is up to you and your personal priorities.
• Use coupons and look for deals.  Shop generic when possible.  Do some “research” before leaving the house to go grocery or clothes shopping to figure out who has the cheapest price and/or is offering the best deal.
• Pack your own lunch and bring your own snacks to work.  It’s not only that $8 a day you’ve been spending on eating out that adds up, it’s also those 2 trips to the vending machine every day that cost you $0.75 at a crack.
• Patronize your local library.  You can check out books, movies (yes, current ones), and even your favorite magazine that you gave up to save money, all for free.
• Find new uses for old or broken items.  Use that old t-shirt for a rag, turn an old bucket into a planter, etc.  Or, invest in repairing items instead of buying new ones.
• Rotate your tires and get your oil changes on a regular basis.  Preventative maintenance is important—it prevents future, major maintenance!  Your tires and your engine will last longer.

I believe that budget is the most important and most effective way to start making your money last longer.  Do remember that all the little ways of saving will add up, though.  And promise yourself to maintain your good money habits even when the recession has officially ended.

Define Ultra Wealthy

First, you need to define ultra wealthy for yourself.  Do you agree that it means you are worth $30 million or more?  Is the title of billionaire the only acceptable definition?  Is it more simple, such as being able to pay your bills and have plenty leftover to play with?  Does it mean owning property on each side of the country or being able to retire very early?

Set Goals

This one is of utmost importance.  You need to set goals and you MUST write them down.  Don’t leave them floating in your head.  Either you’ll forget them or you’ll start to feel overwhelmed and wind up never reaching your goal.  Chalene Johnson, my favorite motivator, is constantly reminding people to work on their to-do lists.  She claims she is average in every way, but her ability to write down her goals and follow through sets her apart.

Take a few minutes to write down some goals for today, then for the week, the month, and the entire year.  Break down the large tasks (such as “Save $10,000 by the end of the year”) into smaller ones to tackle on your daily or weekly lists.  It will make them more realistic and tangible—you’ll know you’re making progress.  And you’re not too busy to do this—in fact, you’ll either learn that you’re not as busy as you think you are, or you’ll learn better time management.  I guarantee from personal experience that you will feel LESS stress.

Take Action

Now that you have your goals on paper, it’s time to DO SOMETHING.  You will not become ultra wealthy by reading your to-do list.  You have to take action.  When you know you have to accomplish something by the end of the day and it’s staring you down, you’ll actually look for ways to make sure you get it done.  There are few things as satisfying as crossing a goal off of your list.

Once you’re a few months (or maybe years) in, it will still be important to set and go after goals.  To remain ultra wealthy, you have to remain active.  If you started a business, you can delegate responsibilities as much as you want, but you need to know what’s going on and continue to be creative and find ways to keep things running smoothly or even improve.  If you invested your money, you need to stay educated on companies and trends and know what moves to make when.

Maintain Good Money Habits

According to Forbes.com, the main reason people fall off of the Billionaire list is death; the next reason is allowing too much debt to accumulate.  You can’t control the first one, but you can control the second one.  You do this by continuing to set goals, taking action, and maintaining good money habits.  The ultra wealthy who remain on these top lists know how to protect the money they’ve made.  When you reach this point (or even if you’re steadily on your way), your risk of a sudden and dramatic loss increases.  Make sure you have a few safe investments and/or savings set up to avoid this danger.

If you’re still in the “pondering” phase, you’re likely to talk yourself out of taking the first few steps.  There’s no doubt that it’s a little scary to start on such an ambitious path as becoming ultra wealthy.  But don’t let that fear of failure get in the way.  If you don’t write down your goals, break them down into easily digestible steps, and take action now, when will you?  Small steps and small savings are always a positive start.  Aim big, but don’t be afraid to start small.

• How to make a budget and stick to it. We were all forced to reevaluate our spending habits.  Even worse, we had to actually sit down and compare income vs. spending, one of the scariest processes in the known world.  But we learned that that was the most difficult part, and everything that came after was easier than expected.  Once you figure out how to spend within your limits, it almost becomes second nature.
• The difference between wants and needs.  That little budget plan caused us to look not only at the amount we were spending every month, but what we were spending it on.  Maybe you realized that you were spending $60 a month on designer coffee when you could brew it at home instead for $6 a month.  Or that family movie night was better spent at home with a movie from Netflix and some homemade popcorn.  Maybe you chose to repair some of your household items and possessions rather than buy new.
• How to pay off debt successfully. Unless you suffered a severe blow to your finances that was most likely out of your control, there’s a good chance you surprised yourself by climbing your way OUT of debt during the recession—never saw that one coming, did you?  You probably found some extra money you never knew you had through your budget and controlled spending, and you probably put that toward your debt.
• How to save money. Perhaps you put some of that extra money into a savings.  Did you open up your first savings account in the recession?  How about an IRA?  Did you finally see the advantages of a 401(k)?  We all learned the importance of having an emergency fund ready.  Even a measly $10 a week into a regular savings account can add up by time you need to dip into it.  One big trick to successfully saving that extra money is to stash it away immediately—don’t let yourself cut back in one place only to spend that money somewhere else instead.
• How to negotiate. We needed to cut back to save money, and nothing was safe.  You might have learned that you were paying way too much for your cell phone bill or internet service, so you either insisted on a new deal or found a new provider.  You learned to scrutinize all of your bills and statements to make sure that you weren’t overcharged, double-charged, or charged for any unnecessary or ludicrous fees.
• If you’re in the right profession. Maybe you came to a more profound realization.  If you lost your job or experienced severe cutbacks at work due to the recession, you were forced to reevaluate your priorities and your life situation as well.  Perhaps you took the opportunity to learn a new skill, sneak in some night classes, or search for a new job entirely.  The job market has been tough, but you went after a positive change anyway, and hopefully you were successful.

The next trick is to remember the lessons learned from this recession and keep them in place.  Once we’re completely on the other side, you can relax a little, but don’t use it as an excuse to go back to old habits.  There’s no telling what the future can bring—there can always be another recession.  Continue your positive money-management skills and you’ll be prepared!

Give Them an Allowance

A good place to start is with the usual allowance, but don’t give your kids the money “just because.”  Let them earn their money.  Give them simple chores like keeping their room clean, taking the garbage out, helping with the dishes, etc.  It can be very helpful to teach them early that money is earned.  It doesn’t simply appear in Mommy and Daddy’s wallets—you want to adjust that way of thinking before they’re teenagers!

Open a Kids’ Savings Account

The next step after the allowance is to teach them how to save.  They’ll quickly learn that if they spend their full allowance every week, they’re limited on the toys and goodies that they can purchase by themselves.  Try to give them their money in small denominations and help them determine how much to set aside every week.  You can have them keep it in a traditional piggy bank or even open a kids’ savings account to start getting them accustomed to using a bank and seeing their savings grow.

Set Goals

What’s the new hot toy right now?  Whatever it is, your kids probably want it, and it’s probably expensive.  Here’s an opportunity to teach them how to set goals.  Have them use the goal to determine how much they must save every week in order to purchase their new toy as soon as possible.  Perhaps you could offer them a special bonus on their allowance if they add another small chore or two to their list, as well.  Here, your kid will learn restraint.

Teach the Difference Between Needs and Wants

Maybe that new toy is just too far out of range for your kid to purchase alone; by time they saved enough, there would be a new hot toy.  Or perhaps it’s time for back-to-school shopping and it sounds like a good idea to have them purchase some of their own supplies.  Now is when you can differentiate between needs and wants.  They’ll learn that sometimes they have to hold off on the fun purchase and only buy what they need or can really afford.

Bargain Shopping

Take your kids with you on your own shopping trips, whether it’s to the grocery store or the mall.  You can show them how you look for bargains and compare prices.  It’s no longer taboo to look on the clearance racks, and buying the store brand can usually be a good idea; show your kids that saving money on purchases is a good thing.  (Be sure to also show them when you should avoid paying the lowest price, when it means sacrificing quality!)

As they get older, you can open a checking account with them and teach them a little more about interest and the real world of finance.  They’ll be pressured more and more as they grow up to have the newest fashions and the hottest electronic gadgets.  If you’ve taught them at a young age to manage their money wisely, they’ll be more inclined to choose when to indulge and the right time to save—and how not to expect Mom and Dad to pay for their indulgences!

I found a great quote recently by a famous dancer and choreographer named Martha Graham: “Great dancers aren’t great because of their technique; they are great because of their passion.”  You don’t have to be a dancer for this to apply to you.  You probably know people who are fortunate enough to have jobs that they love.  They’re successful, they get to use their favorite talents everyday, and they don’t view their jobs as “work,” no matter how much of their time must be invested.  These people are the “dancers” in the quote, and you can be a part of it.  You just need to find your passion, too.

Question Yourself

Start with what you already know about yourself.  What are you good at?  What are your favorite hobbies?  What did you always want to be or do when you were growing up?  What topics get you excited?  These are great places to begin your personal investigation.  Don’t write anything off just because you think it might not be a big moneymaker.

Research Your Passions

Once you have your talents, hobbies, etc., written down, you can begin research.  Run internet searches, read books on your topic, network and talk to other people.  Someone somewhere has figured out a way to connect this topic to a career path, and if they’re truly passionate about it and not only in it for the money, they’ll be willing to share their knowledge with you and perhaps serve as a mentor in some way.

Follow Your Passions

If you’re going to start your own business, you’ll read many times over that you must begin with a profitable idea; sell something that people will want to buy.  I’ve even written that in previous articles myself.  But make sure you read on and get all the information—your idea still has to be something you’re passionate about and enjoy doing in order to have the greatest chance of success.  If you’re not excited about your idea, how can you convince others to be excited and buy into it with you?  If you’re not excited, you’ll be less likely to put forth all the necessary effort and you won’t reach the level of success you might be expecting.

Perhaps Harold Whitman can put it into perspective for you: “Don’t ask yourself what the world needs.  Ask yourself what makes you come alive.  And then go and do that.  Because what the world needs is people who have come alive.”

Stay Curious

Once you’ve determined what makes you happy, you can start turning it into a business idea, or even just keep it as a hobby for your free time.  You’ll be more inclined to keep learning about something when you’re passionate about it because you won’t view it as a chore.  You’ll be genuinely curious to discover more information about it, learn how to become better at it, and find more ways to perhaps make some income from it.

It’s Okay to Change Passions

Are you finding that your passions are different today than during your childhood?  That’s okay!  Follow what excites you NOW.  You don’t have to force yourself to live out a childhood dream that no longer ignites passion or feels relevant.  As we get older, everything about us changes, and sometimes the change is so subtle we don’t notice it until we’re really taking the time to look within.

Here’s a personal example.  I always knew I wanted to be a writer.  Always.  And I’ve followed through on that, even through school and to the present.  But I have also had a passion for music.  I took clarinet and keyboard lessons, then focused more on singing, then set it aside.  When I entered college, I started off with my writing major, then added a theatre major as well because I discovered in high school that I loved acting.

I had full intentions of following acting dreams after college.  Then I joined a band as a singer.  I realized I should have been pursuing the musical route all along, and that’s where I am now.  I’m still extremely passionate about writing and acting, but my passion for music wins out—and I can easily combine all three while keeping music at the forefront.

I also began working out in high school.  I hated it.  I didn’t want to spend 30 minutes or more a day doing cardio.  Fast forward to just a few years ago.  A friend introduced me to a cardio workout that I absolutely loved.  I stayed motivated, convinced others to try it with my enthusiasm, and today I’m on a journey to become an instructor for the live classes that can be taught in health clubs.

Is it going to interfere with my pursuit of a music career?  No way.  Is it going to be a source of income?  Absolutely.  Is it going to reach the point of providing full-time income?  Probably not.  Will that stop me from putting my full passion into it?  Not a chance.  Will such passion open up a better potential for me to be able to turn it into a successful full-time job?  Very possible.  I can ask myself the same questions about pursuing music and give the same answers.  That’s not stopping me from going full-force on either one.

And it shouldn’t stop you, either.  It’s okay to have multiple passions, it’s okay to have changing passions.  I only encourage you to make sure you’re following them!  Don’t start out pursuing money: “Follow your passions and the rest will come.”  If you do something because it’s what you love, and you put passion into your passion, you’ll open up more opportunities than you ever thought possible.