How to become a millionaire
I came across this article online somewhere. Decent advice.
The Top 10 Steps To Becoming A Millionaire
By Dr Philip E. Humbert
- Decide to be financially successful.
- Understand how money works.
- Master your relationship with money.
- Set specific goals.
- Develop a budget.
- Reduce spending.
- Begin investing.
- Increase assets.
- Reduce taxes.
- Use your wealth wisely.
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?
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.
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.
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.
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!
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.
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.
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!
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!)
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!
![[del.icio.us]](http://images.del.icio.us/static/img/delicious.small.gif){kind=small}
- Top 5 Ways To Go Broke Ever wonder why some people go absolutely broke. Not like Donald Trump who had a negative net worth of a Billion Dollars but still lived lavishly. And maybe not in a totally homeless sort of way, with a shopping cart full of the clothes and tinned food. But so broke......
- Buying Canadian Income Funds For Passive Income (and Financial Freedom) Yesterday, I bought some more Canadian Income Funds, also called Royalty Trusts or Canroys. As I mentioned before, I recently refinanced a property and I managed to pull some money out (totally tax-free!). Rather than spend the money on an SUV or a big-screen TV, I opted to divide the......
- Monthly Passive Income Crosses $2,000 Mark! I've finally broken the $2,000/month in passive income! Passive income for February 2008 was $2,383.55. Not bad considering I wasn't even in the country! Here's the breakdown: Online Income: $$1399.29 Adsense: $416.22 Linkworth: $221.99 TLA: $95.87 Kontera: $51.36 Affiliate: $83.85 Prosper Referrals: $100 Direct Ads: $430 Savings Accounts: $138.43 Real......
Related Websites
- The Ultimate Cheapskate's Road Map to True Riches Giveaway I've gotten away from book reviews the last few weeks, and it took a really good one to motivate me to write another review. The Ultimate Cheapskate's Road Map to True Riches, by Jeff Yeager, is one of the best frugal living books I've ever read. Yeager was kind enough......
- Debt Relief Help Your spending habits will ultimately land you in two completely different realities: 1) Increased wealth and abundance 2) Increased debt and struggle Here are 6 common spending habits that often lead to increased debt and financial struggle and are best avoided like the plague. 1. Spending more than you......
- You On A Budget! Just the word, "budget," can put people in a tailspin. It's not the most pleasant task, but it's a necessary evil if you're going to face up to bad spending habits and turn yourself around so that you're making wise decisions. Most people who find themselves in the throes of......
[All content is copyright of Living Off Dividends & Passive Income]
April 30th, 2006 at 12:16 pm
Nice nice very nice!!
May 1st, 2006 at 2:20 pm
Super advice. Thanks for sharing. If there are those interested in online money making sites, I review their ebooks. Check out http://increase-your-earnings.blogspot.com.
May 1st, 2006 at 4:00 pm
I’m about 85% through Rich Dad, Poor Dad and it seems like these are a combination of those and the advice from what I’d imagine Millionaire Next Door is… if I read it.
May 1st, 2006 at 10:51 pm
Hmm. Nice advise. Are YOU by chance a millionaire yet?
=)
~1mil