20 Easy Things That Will Make You the Next Millionaire

[38Chevy454]

Saw this article and it has pretty good correlation with much of the advice given on the forum here

https://smallbusiness.yahoo.com/advisor/20-easy-things-next-millionaire-131727812.html

Main points summarized here:
Buy The Things That You NeedEven though one of the reasons people strive to become millionaires is to be able to afford the things that they want to do, living in a house far too big for your needs or shelling out on a vehicle more luxurious than you require is going to set you back in your goals.
Spend Less Than You EarnThis is saving money and accruing wealth 101, but even old advice can be good advice, and such is the case with this.
Make Sure That You Can Pay Off the Things That You BuyAnd the quicker you can pay them off, the better! This will enable you to search for a job that you love and will therefore be more conducive to putting you closer to your goals.
Exercising PatienceIt may be really tempting to up your quality of living or your lifestyle expectations as you begin accruing more money and assets to make you into a millionaire, but you will not reach your goal by taking some out of the pot.
Utilize Automatic Paycheck DeductionsYou cannot spend what you do not have, so having these set up with your bank is going to help you save money better than many other tactics will.
Pay Off Your Credit Cards Every MonthHaving a good credit score is always a strong financial situation to be in, but making sure that you can afford what you are spending is even better when you are trying to become a millionaire.
Use Time to Your AdvantageThe quicker you start saving, the better. If you begin saving in your twenties or thirties, you will be able to take advantage of compounding interest and put yourself in a better position without having to do much extra work.
Realize That Money Doesn't Buy HappinessWhen you are working for a wholesome goal instead of a ploy to satisfy material urges, your goals will come to you faster and easier.
Realize That 'Life Happens'Having a bit of money on the side separate from your millionaire fund will keep you on a steady track toward that goal; after all, you never know when a financial emergency will rear its ugly head.
Focus on Being Debt FreeEven if you have income coming in every month, if you have any sort of debt, you need to be deducting that from your gain--if it comes out negative, you are not financially free, and will not be able to achieve your millionaire dreams yet. In order to be the next millionaire, you have to make sure that your debts are all paid.
Work Hard And DiligentlyIf you keep putting in the effort, it will be easier to make amends after a financial mishap.
Get a Second JobNot only will it add to your savings that much faster, but also if you stay busy you will have no time to spend the money that you are trying to save.
Don't Be Afraid to Have a Big VisionMost modest savings plans do not end up panning out as the people who made them would have liked. Having a vision larger than what you can currently deliver will actually be the best way to ensure that you meet your goal.
Have Good Money Management SkillsKeep up to date on what you need to know to manage your money, and realize that without good management, it will never grow or mature into what you would like it to be.
Do What You EnjoyWorking in a field you enjoy will be one of the fastest routes to financial freedom and success, as you will spend more time at work and excel at it, putting you in a better position for promotions and pay increases.
Pay Yourself FirstThis will keep you satisfied and will help you achieve financial success with your goals.
Go Out And Find Your MoneySimply saving and hoping that it will come to you will never be good enough. You will only receive what you earn.
Invest in YourselfWithout furthering your education or professional development, there will be nothing to set you apart from others, and no reason for your employer to aid you in your goals.
Invest in Property When You Do Buy AssetsHaving property on hand is always going to be a good asset, as there are always buyers for property and property values are beginning to climb again, healing from the collapse in 2008.
Realize That There Is More Than One Way to Approach a ProblemBeing versatile will lead you quickest to the solutions for your problems.

 

[Car-Guy]

Saw this article and it has pretty good correlation with much of the advice given on the forum here

https://smallbusiness.yahoo.com/advisor/20-easy-things-next-millionaire-131727812.html

Main points summarized here:
Buy The Things That You NeedEven though one of the reasons people strive to become millionaires is to be able to afford the things that they want to do, living in a house far too big for your needs or shelling out on a vehicle more luxurious than you require is going to set you back in your goals.
Spend Less Than You EarnThis is saving money and accruing wealth 101, but even old advice can be good advice, and such is the case with this.
Make Sure That You Can Pay Off the Things That You BuyAnd the quicker you can pay them off, the better! This will enable you to search for a job that you love and will therefore be more conducive to putting you closer to your goals.
Exercising PatienceIt may be really tempting to up your quality of living or your lifestyle expectations as you begin accruing more money and assets to make you into a millionaire, but you will not reach your goal by taking some out of the pot.
Utilize Automatic Paycheck DeductionsYou cannot spend what you do not have, so having these set up with your bank is going to help you save money better than many other tactics will.
Pay Off Your Credit Cards Every MonthHaving a good credit score is always a strong financial situation to be in, but making sure that you can afford what you are spending is even better when you are trying to become a millionaire.
Use Time to Your AdvantageThe quicker you start saving, the better. If you begin saving in your twenties or thirties, you will be able to take advantage of compounding interest and put yourself in a better position without having to do much extra work.
Realize That Money Doesn't Buy HappinessWhen you are working for a wholesome goal instead of a ploy to satisfy material urges, your goals will come to you faster and easier.
Realize That 'Life Happens'Having a bit of money on the side separate from your millionaire fund will keep you on a steady track toward that goal; after all, you never know when a financial emergency will rear its ugly head.
Focus on Being Debt FreeEven if you have income coming in every month, if you have any sort of debt, you need to be deducting that from your gain--if it comes out negative, you are not financially free, and will not be able to achieve your millionaire dreams yet. In order to be the next millionaire, you have to make sure that your debts are all paid.
Work Hard And DiligentlyIf you keep putting in the effort, it will be easier to make amends after a financial mishap.
Get a Second JobNot only will it add to your savings that much faster, but also if you stay busy you will have no time to spend the money that you are trying to save.
Don't Be Afraid to Have a Big VisionMost modest savings plans do not end up panning out as the people who made them would have liked. Having a vision larger than what you can currently deliver will actually be the best way to ensure that you meet your goal.
Have Good Money Management SkillsKeep up to date on what you need to know to manage your money, and realize that without good management, it will never grow or mature into what you would like it to be.
Do What You EnjoyWorking in a field you enjoy will be one of the fastest routes to financial freedom and success, as you will spend more time at work and excel at it, putting you in a better position for promotions and pay increases.
Pay Yourself FirstThis will keep you satisfied and will help you achieve financial success with your goals.
Go Out And Find Your MoneySimply saving and hoping that it will come to you will never be good enough. You will only receive what you earn.
Invest in YourselfWithout furthering your education or professional development, there will be nothing to set you apart from others, and no reason for your employer to aid you in your goals.
Invest in Property When You Do Buy AssetsHaving property on hand is always going to be a good asset, as there are always buyers for property and property values are beginning to climb again, healing from the collapse in 2008.
Realize That There Is More Than One Way to Approach a ProblemBeing versatile will lead you quickest to the solutions for your problems.

I can agree with many of these but some, not as much. Also, they are not all "easy things" IMHO (e.g. getting a second job?). Getting a second job may be easy to do for some people but it can be hard on enjoying "living". I do agree with getting a job you enjoy, if you can. It doesn't hurt if that job pays really well with good benefits. For me, having a good paying job that I enjoyed, regular savings, along with living within my means, were the keys.

 

[harley]

There are always buyers for property? I guess, assuming you don't mind selling for less than you bought for.

Who wrote this part, Rich Dad?

 

[GrayHare]

"Pay Yourself First" is frequently mentioned but never explained. Put money in savings before you pay bills? Spend on what you want first? Since the meaning is unclear to me, I must operate very differently than the target audience.

 

[nuke_diver]

Realize That Money Doesn't Buy Happiness When you are working for a wholesome goal instead of a ploy to satisfy material urges, your goals will come to you faster and easier

Not sure I agree with this one...if I had more money I'd be happier

 

[Lakewood90712]

Most of the forum members practice a lot of these things . The sad thing is, with our economy being a so called "Consumer Economy" it would collapse if most did the same.

 

[MichaelB]

"Pay Yourself First" is frequently mentioned but never explained. Put money in savings before you pay bills? Spend on what you want first? Since the meaning is unclear to me, I must operate very differently than the target audience.

Pay yourself first means have your savings withheld automatically from your paycheck and deposited in your retirement account. You never see the money and don't have to do anything to save.

 

[6miths]

'Get a second job'?! I just got rid of the original one! Doesn't really jib with the 'money doesn't buy happiness'. Work/life balance is the key. A 'fun job' or a volunteer 'job' maybe. A second job might make you a millionaire sooner but it might also make you unhappy, divorced, unhealthy... as well.

 

[pb4uski]

Pay yourself first means have your savings withheld automatically from your paycheck and deposited in your retirement account. You never see the money and don't have to do anything to save.

This was the only way I could save when I was in my early 20s - if money hit my checking account it was inevitably spent. However, this was in the late 70s, long before direct deposit was prevalent. I had a separate savings account at a bank that was a 5 minute walk from work but in the opposite direction than my way home and made sure not to have an ATM card for that account. Each payday I would take the amount I was saving in cash when I deposited my paycheck in my regular bank and then walk to the other inconvenient bank and deposit my savings.

I got the satisfaction of doing it and was less likely to spend that money because it was inconvenient to get to.

 

[Walt34]

"Pay Yourself First" is frequently mentioned but never explained. Put money in savings before you pay bills?

The unsaid part of that is don't run up bills you can't pay after you "pay yourself first".

That means write a budget in which you pay yourself first, then spend on the other things, like food, rent, etc. There is always someone living on less than your income. What do they do? If necessary, do that.

 

[samclem]

Good tips overall, but it falls a bit short. It stresses "saving" money, but doesn't give any clue about what to invest in--except property. That's a way, but it's not the only way, or maybe even the best one.

 

[scrabbler1]

At the risk of starting a firestorm, the list left out the biggest reason I have a NW of over $1M: No kids. I am childfree and proud of it, and attribute that key lifestyle choice as by far the biggest reason I have a NW of over $1M.

 

[Dd852]

I often joke that my two key secrets to financial success are no divorces and no children! A third is a dw whose attitudes towards spending and money are, if anything, meaner and leaner than mine... Plus some luck.


Sent from my iPad using Early Retirement Forum

 

[EastWest Gal]

One kid is pretty good too. For me being a parent enriched my life enormously. I wouldn't have missed it for the world. Now he's about grown we are the best of friends too.


Sent from my iPhone using Early Retirement Forum

 

[6miths]

Four kids, a healthy net worth and a solid safety net for old age. Family. Many different ways to get there. And children are well worth it, IMHO.

 

[gozer]

Not sure I agree with this one...if I had more money I'd be happier

I've always said that while money doesn't buy happiness, it does make many of life's problems go away. And that makes it easier to be happy.

 

[harley]

At the risk of starting a firestorm, the list left out the biggest reason I have a NW of over $1M: No kids. I am childfree and proud of it, and attribute that key lifestyle choice as by far the biggest reason I have a NW of over $1M.

I sort of doubt that's true. I suspect if you're the type to accumulate a $1M net worth you would do it with or without kids, same as I did (with a kid). No kids might make it a bit easier, but I see plenty of DINKs without 2 quarters to rub together.

 

[scrabbler1]

I sort of doubt that's true. I suspect if you're the type to accumulate a $1M net worth you would do it with or without kids, same as I did (with a kid). No kids might make it a bit easier, but I see plenty of DINKs without 2 quarters to rub together.

Oh, it's definitely true. There is no way I could accumulate $1M by age 45 if I had kids because my expenses would be so much greater, from housing to food to clothing to medical expenses. Unless one's kids are generating more income than expenses, kids will always be a drain on one's finances, thereby delaying (early) retirement or making that impossible altogether. And if DINKs had kids, they would not have 2 nickels to rub together, let alone 2 quarters.

 

[scrabbler1]

Four kids, a healthy net worth and a solid safety net for old age. Family. Many different ways to get there. And children are well worth it, IMHO.

Whether children are "well worth it" is irrelevant to this discussion. (Parents are supposed to say that except on message boards such as "TruMomConfessions" and other similar sites.) Unless your kids are generating more income than expenses, they made your safety net smaller and reduced your net worth compared to if you had been childfree. We say the same things about people who spend money recklessly on cars, houses, vacations, restaurants, financial advisors, etc., all of which worsen one's financial position and make retirement tougher. I am simply adding children to that mix.

 

[mpeirce]

On the other hand having kids can be a great motivator to work hard and save. Likewise, I know a number of kidless folks who never got serious about life.

On the whole I expect it's probably a wash.

 

[daylatedollarshort]

I agree with some of the tips, not others. A lot of this advice is very different than The Millionaire Next Door series of books. Two jobs? That sure wasn't how most of the people in the books got rich. They usually had one career or business that paid well and enjoyed their free time. Invest in property? Sure if you know what you are doing but many people don't or we wouldn't have had all the foreclosures world wide these past several years. Do what you love? Most of our kids' friends who went to college for majors they loved without considering job prospects can't find work and are overqualified for Starbucks.

 

[nash031]

Most of the forum members practice a lot of these things . The sad thing is, with our economy being a so called "Consumer Economy" it would collapse if most did the same.

This is the paradox of our financial lives... I don't often want to give advice because as a save/invest/indexer, I need the consumers/day-traders to continue their behaviors in order for my plan to succeed.

'Get a second job'?! I just got rid of the original one! Doesn't really jib with the 'money doesn't buy happiness'. Work/life balance is the key. A 'fun job' or a volunteer 'job' maybe. A second job might make you a millionaire sooner but it might also make you unhappy, divorced, unhealthy... as well.

No way in hell would I get a second job, but then again, it's not aimed at me. It's meant to "increase your income." A better way to say it, or "get a higher paying job."

At the risk of starting a firestorm, the list left out the biggest reason I have a NW of over $1M: No kids. I am childfree and proud of it, and attribute that key lifestyle choice as by far the biggest reason I have a NW of over $1M.

While this is helping us achieve a big-time savings rate, I don't think it's mandatory. Certainly our NW of ~$1MM at age 37/33 is due, in part, to DINK status, we would've gotten there regardless. As it stands, if we end up with kiddos, we'll have a hell of a nice financial headstart on those who had kids early. Their kids may be out of the house earlier, and they may see grandkids and great-grandkids, but the savings and compounding time can never be made up either. I suspect we'll have the best of both worlds - a family and an early retirement. Hell, family may encourage earlier retirement: more time with the kiddos.

 

[MuirWannabe]

Whether children are "well worth it" is irrelevant to this discussion. (Parents are supposed to say that except on message boards such as "TruMomConfessions" and other similar sites.) Unless your kids are generating more income than expenses, they made your safety net smaller and reduced your net worth compared to if you had been childfree. We say the same things about people who spend money recklessly on cars, houses, vacations, restaurants, financial advisors, etc., all of which worsen one's financial position and make retirement tougher. I am simply adding children to that mix.

I guess you are spouse free as well. Logic is the same. Actually they can be worse than kids sometimes

But really, I don't think the equation is quite as simple as you are making it out to be. But it's good you are happy with your choice.

 

[candrew]

I did the 2nd job thing for the better part of 17 years largely out of necessity (loads of medical bills insurance did not cover, then as a means to pay college tuition so DW could pursue her grad degree). I can't say that I'd recommend the 2nd job path for everyone - and mine was a "fun" 2nd job as a high school & NCAA sports official. Being away from home 4 evenings/week plus Saturdays & Sundays officiating turned what was once an enjoyable avocation into - you guessed it - a JOB.

 

[foxfirev5]

One kid is pretty good too. For me being a parent enriched my life enormously. I wouldn't have missed it for the world. Now he's about grown we are the best of friends too.


Sent from my iPhone using Early Retirement Forum

Exactly. DW and I have three grown children with our third grandchild on the way. Can't put a dollar figure on that one. However, in spite of everything life has thrown our way we're FI. With good fortune (luck) and hard (smart) work you really can have it all.