So You Want To Be A Millionaire
Does it feel hopeless in todays economic condition?
Here are some tips to get you on your way to becoming a millionaire. I didn’t say instant Millionaire. I just said Millionaire.
According to MSN Contributor Liz Pulliam Weston, “ her day for becoming a millionaire was just like every other day. Her husband was fretting about his long commute. She was upset over an unuasally high power bill.” Sound familiar?
“We didn’t, for example:
- Win the lottery.
- Score a big win in the stock market.
- Inherit a huge pile of cash.
- Appear on any reality shows.
We do, however:
- Make financial security a priority.
- Spend less than we earn.
- Save and invest regularly.
- Pay down our debt.
- Own a home.”
The above list is a very good starting point for everyone. Pay yourself first. Sign up for your companies 401(k) plan. Even if you absolutely can not stash away 15%. Make it a goal to go with the match amount first Let’s just say 4% and then add 1% to that every three months. After a few years you will be up to 10%-15% without even knowing it or missing the money. This is part of the pay yourself first strategy. Buy car’s used instead of new. Try to own a home versus renting. If you live in San Francisco or New York forget the last sentence it may be too far out of reach to own property. Save money a different way. Like placing some of your paycheck in an account that invest in the stock market. My husband and I started purchasing a mutual fund by T.Rowe Price, First we started sending $50.00 bucks a month, then every two weeks. Then after a year or two we had over $3,600 saved up which came in handy when one of us lost our job. Stash cash in a savings account that doesn’t fluctuate, a vacation account so when you are ready for vacation it is paid for and then in a mutual fund. You will be so happy you did this when an emergency comes up. Don’t buy things you can’t pay for with cash. My husband and I had been wanting a big flat screen tv for a long time. 52 inches of heavan and surround sound about $2,000-$3,000. We however suffered with our baby set until one of my coporate bonuses paid out and then we indulged. I will say it saved us the price of the movie theater because we both would rather stay home in our little theater room. I am a money manager and advisor in Atlanta and I have met with so many working couples that are just adding money to their kids college funds each month and the 529 plan. They never stop to think about their own retirement. I know when you are a parent you only want the very best for your kids,even to the point of sacrifice. I have seen couples take out a home equity line of credit so that their child can attend a private university at $38,000 a year. After many conversations with me as their advisor, “they know that this is not smart” but often times they do it anyway. For parents that never had the opportunity to go to college at all or struggled to make ends meet while doing it they want to give their child every leg up. I have to council many and go back to the pay yourself first rule. Kids can get scholarships, low interest loans, or even be a successful restaurant owner instead of going to college. You just need to firm up your own plan before building your childs plan. Please read Thomas Stanley’s New York Times Best Selling Book “The Millionaire Next Door”. He has done so much research on this topic in his award winning career. The cultivation of wealth is just like the careful cultivation of a garden. It takes time, it takes a plan, it takes effort, it takes sacrifice and then suddenly you can enjoy your harvest.