3 Steps To Wealth
Contrary to popular perception millionaires are surprisedly ordinary. Most of them got where they are through hard work.
In fact, some 80 percent of the nation’s financially successful individuals are first generation millionaires.
In other words, they weren’t born rich.
Instead, they applied themselves to a career and tapped into tried and true values like thrift and disciplined saving.
It’s been said that many millionaires have a middles class mind set. Here’s what we can learn from them.
Think Long Term.
Successful people understand that amassing wealth does not happen overnight. They establish long-term goals and adjust their daily behavior to achieve them – including overcoming the need for immediate gratification.
The rich are willing to take risks that don’t involve a guarantee (like a paycheck). In fact, self employed people are four times more likely to be millionaires than those who are employees.
Live Below Your Means.
Most millionaires don’t drive fancy cars or live in million-dollar homes. In fact, many of them are immigrants who didn’t fall prey to the consumer lifestyle trap. They understand they will never get rich by spending every dollar they make (or spending money they have yet to make).
They are generally fastidious savers, socking away on average 20 percent of their annual income.
Millionaires educate themselves about investing. They seek advice from investment professionals, and choose high quality stocks or mutual funds. Just as important, they invest consistently and hold onto quality investments for the long term.
The wealthy have learned that income dividends is taxed at 15 percent for long term gains, while wages are taxed at 25 percent for the middle class. They also know that owning a business and being able to deduct business-related expenses is a powerful tax benefit.
So what are 3 Steps To Wealth?
1. Set Goals. The adage, “If it doesn’t get written down, it doesn’t get done” holds true here. Sit down and compose a basic plan that includes your current net worth and debt-to-income ratio. Then, map out a monthly budget and a plan for regular saving and investing.
2. Spend Cautiously. It’s easy when you begin making more money to want to buy a luxurious car or move up to a nicer home. But before spending the money, ask yourself, “Would I rather have a fancier car or would I rather be wealthy?” IN the same vein, be wary of debt. Avoid using credit cards unless you can pay off the balance quickly. If you do carry debt, concentrate on paying it off as quickly as possible.
3. Save Often. Saving even small amounts over an extended period of time is a sure way to enjoy wealth. The key is to make it something you do regularly and consistently. Consider having a portion of your salary automatically deposited in your savings account each pay period. Next, educate yourself about investing. After you have enough saved to cover investing in quality stocks and bond mutual funds.
3 Steps To Wealth
Take action and save!
You Can, You Will & You Must,