STEPS
IN BECOMING A MILLIONAIRE
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:
1. 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?
2. 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.
3. 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.
4. 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.
5. Develop a budget. A budget is a set of dreams
and aspirations. Its 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!
6. 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.
7. 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.
8. 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!
9. 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!)
10. 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. Three
of the best are: "The Millionaire Next Door" by Thomas Stanley
and William Danko, "Secrets of the Millionaire Mind” by
T. Harv Eker and “The Automatic Millionaire by David Bach
By Phillip Humbert
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