The Top 10 Steps to Becoming a
Millionaire
There
is perhaps no more important decision than to take charge of your own financial
future. We live in a world of opportunity, and yet most Americans are buried in
credit card and other debt. We are surrounded by people who are getting rich,
but most of us are running in place. If you can read this, you are literate,
have a computer, you are part of the "wired generation". You can become as
financially independent as you wish to be. Here are the Top 10 keys to your
financial success:
- Decide to be financially
successful. This is different than wishing, hoping, wanting or
even desiring to be rich. Make a commitment that this is going to
happen! Financial independence is not an accident or matter of luck, and
it usually requires some inconvenience. Have you decided to achieve this
goal?
- Understand how money
works. Most of never studied finance or investing in
school. Most of were never even taught to balance a checkbook! To
master anything, you have to understand it. Read. Study what
successful people do. Take classes.
- Master your relationship with
money. Some of us spend for excitement, to show off, to prove
we can. Some of us are addicted to spending, and some of us are just
careless about it. Whatever your relationship with money, understand it
and develop a relationship of respect, appreciation and gratitude. Use
your money, rather than allowing it to run your life.
- Set specific
goals. They should be challenging, but not unbelievable, just
out of reach but not out of sight. Challenge yourself to be out of debt
by a specific date. Make a commitment to saving an exact amount each
month.
- Develop a
budget. A budget is a set of dreams and aspirations. It's
how you really, really want to use money to benefit your family and run your
life. Budget to buy the things you really want, and to eliminate the
"impulses", the toys that waste too much of our income. A budget is a
map to your destination. Have one and use it!
- Reduce
spending. Yes, this comes after making a budget, because when
you begin getting control of your money (rather than the other way around) you
have powerful new reasons to reduce expenses. Most self-made
millionaires live far below their means! You should to.
- Begin
investing. Most of us spend or speculate. Both are roads
to disaster! Invest in things you understand. Invest cautiously,
wisely, and regularly. The objective is not to "make a killing", but to
get rich over time. Know and obey the distinction between gambling, and
putting your money to work for you.
- Increase
assets. Most people try to increase their income, and that's a
mistake. Making more money means paying more taxes. It takes time
and hard work. And, when wealth arrives in the form of cash, it's easier
to spend. Millionaires buy stocks and buildings, they invest in assets
that will make them rich – and that are hard to spend on a
whim!
- Reduce taxes.
Most Americans pay more in taxes than for food, clothing and shelter
combined! It is your largest expense! The poor and middle class
don't realize how much they pay because it's deducted from their pay
check. The wealthy know there are legal and appropriate ways to shelter
income, to invest in socially-responsible ways, and that the tax code
encourages this. Learn the tax laws and use them for your benefit!
(Yes, it's the most boring reading you'll ever do, and worth
it!)
- Use your wealth
wisely. Someone once said, "The reason most of us aren't rich
is that we'd spend it all on ourselves." Give. Share. Help
others. When you use money to make a difference, to have a positive
impact, you get the chance to do more. Being greedy and selfish will not
draw money to you. Investing in your community, will!
To begin your education about money and
becoming a millionaire, I highly recommend several books on the subject.
Two of the best are: "The Millionaire Next Door" by Thomas Stanley and William
Danko, and "Rich Dad, Poor Dad" by Robert Kiyosaki and Sharon
Lechter.
Phil, Mary, and the
Staff at
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