How to become a millionaire in 7 easy (hah!) steps
The road to wealth is not paved with infomercials. Those wee-hour TV staples would have you believe that you'll become rich by buying -- for no money down -- distressed property and selling it for millions.Unfortunately, the only thing you're likely to get from watching those infomercials is dark circles under your eyes from lack of sleep. If you actually go to the seminar or buy the tapes, you'll probably just have more debt.
7 steps to becoming a millionaire:
- Develop a written financial plan
- Save, save, save
- Live below your means
- Lay off the credit
- Make your money work for you
- Start your own business
- Get professional advice
The truth is, unless you're lucky enough to receive a sizable inheritance, you'll need to navigate your own route to prosperity. But while Bill Gates-style megawealth may be elusive, becoming a millionaire is definitely within reach of those who start young and develop the right habits. And anyone, at any age, can develop the traits that increase wealth and decrease debt."You can have money or you can have stuff, but seldom do you have both early in life," says Jason Flurry, a CFP professional and president of Legacy Partners Financial Group in Woodstock, Georgia."Part of our culture is, 'Fake it until you make it.' Debt holds people back. They buy liabilities and they make those payments forever. Spend less than you make, live a modest lifestyle and don't live up to every raise. Some people have spent their prosperity for the next 10 years and they've done it on credit."
It's a matter of choices
Flurry isn't suggesting you decorate your home in plastic lawn furniture, forgo cable TV and dine on macaroni and cheese every night. But do you really need to buy a car that's so expensive that you must stretch the payments out 5 or more years? Do you have to have that 50-inch ultrahigh-definition TV right now?
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Many people who choose wealth over "stuff" wouldn't consider spending money on the "latest and greatest" because they know their money can be put to better use elsewhere. Buying a "liability" would probably cause them stress because they'd rather buy an asset -- something that will appreciate over time and give them a return on their investment.Flurry says he has a hard time getting some of his older clients to spend their money."They've been savers all their lives and the thought of spending $5,000 or $10,000 on a vacation is ridiculous; it doesn't matter that they're worth $3 million. They're really the last Depression generation and it's burned in their memory that they need to squirrel away money."
Fantastic :D Upvoted