How to Be a Millionaire
I know, I know, the net worth of 1 million $$ isn't what it used to be is it? It is, however, a lot more than 85% of British, Australian and US households have.
I am writing this article after information I learnt from researching what millionaires around the world have done.
The essential points are:
1.Your priority should always be financial security.
2.Ensure that you have more income than expenditure
3.Committed and consistent savings and investment
4.Pay off your debt as quickly as possible.
5.Own a home.
The above tips are simplistic and extremely reliable.I'll come back to these in a minute, but let's first review a few other tidbits of information:
If you haven't got a plan, it's way too easy to lose your way: spending money on stuff that isn't important, taking on debt that's toxic rather than helpful, giving in to despair when markets turn against you. Having a long-term goal, and a long-term view, are essential to keeping your balance.
I bless my Depression-era mother, who grew up poor, knew how to pinch a penny and put a high priority on savings. Importance should be placed on "paying ourselves first". With that I mean you should look to save at least 10-20% of your gross pay, each and every pay. Credit cards should only be there for emergencies and you can get yourself into big debt by carrying credit card debt.
Automating your investment plans will assist you tremendously.We invest regardless of whether the market is up, down or sideways. I invest no matter what position the market is in. We know that, in the long run, a well-diversified portfolio of stocks beats out every other investment, even if there are some bumpy times along the way.
Keeping your housing expenses to 25% of your gross pay, for example, will help ensure you've got enough left over to fund your other goals and have some fun once in awhile.
Despite the ups and downs, owning a home has long been the cornerstone for wealth for most people. Some interesting statistics to remember are that in the richest 10% of US households, 96.6% of those were home owners compared with 69.1% of the total number of households.
Obviously it is going to be a lot easier to achieve you goals and have money left over to enjoy and use for fun if your salary/income is continually rising. So we've invested in education, launched our own businesses and looked for new ways to generate cash. In today's ever-changing economy, you have to be ready to learn new skills and take new directions.
And I have probably left the most important point until last: My husband and I don't live just for tomorrow. We put importance not both our long term goals and focus but also live life to the fullest each and every day. The fattest bank account in the world wouldn't be worthwhile to us if we didn't have a chance to enjoy each other, our daughter and our lives. So we appreciate the financial mileposts when we achieve them, but we know there's more -- a lot more --to life than money.
For any more information or for a look at our home based business then please visit me at http://www.karlievalentine.com
