Credit & Debt

Getting Into The Millionaire Club Is Easier Than You Think!

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Getting Into The Millionaire Club Is Easier Than You Think!

Hello Sophisticated Spenders!

People think millionaires are mythical people.  They think there are only a few ways to become a millionaire:

  1. Inherit the money
  2. Win the Lottery
  3. Have a hit record
  4. Play professional sports

What if I told you that YOU (yes YOU my sophisticated spending friend), can become a millionaire too!

Most millionaires weren’t born millionaires.  They earned that money and they were strategic about how they spent said money.

Here’s a cool game you can play where you see if you can make it to the end of the month: Survival of the Financially Fit! Play Spent.sophisticated spending

Making a few tweaks to the things that you already do can make a HUGE impact on your bottom line.

Here’s my plan on entering the Millionaire Club:

1: “Spend some money on income producing assets.”-items that will produce income: stocks, businesses, business materials, real estate, education, trainings, etc.  Instead of buying daily starbucks, buy their stocks.  If you spent 5 bucks a day on their stocks, you’d have a nice piece of the Starbucks pie.  I’ve been buying more stocks (ones that pay dividends of course).  I’ve also started a sewing business.  I also have a goal of not buying any new clothes this year (win win for the sewing business-and my pocketbook).

2: “Contribute the max that’s matched in my employee retirement plan.”-This one is pretty easy because this means I pay less taxes every year and I also increased that amount by 1%. So now I’m putting away 8% of my income into my retirement funds (and I’m getting a  5% match on what I contribute from my employer).

3: “Live within my means.”-I’m only doing and buying things that I can pay for in cash!  I drive a paid off car and I’ve actually downgraded to a 500 square foot place.

4: “$0 Credit card debt.”-I pride myself on not having any credit card debt. It’s not easy!!!!!  I set a monthly allowance and am NOT allowed to overspend.  Sometimes I live like a queen for the first 3 weeks of the month and you’ll see drastic changes during that last week if I didn’t pace myself.

5: “Donate used items.”-Moving from a 1500 square foot place to a 500 square place really makes you value things.  I’ve been slowly filling the new place with junk, but I’m due for a massive cleaning.  Donating items reduces your tax bill!

6: “Pay extra on mortgages so that they will be paid off by age 40.”-I’m only doing this one because I don’t plan on selling my properties. It is recommended that you NOT do this if you plan on staying in a home for less than 5 years.

7: “Attend blogger conferences to improve my blog.”-This one is funny because a friend asked if I’ve implemented all of the stuff that I’ve been learning at all of these conferences. And she got a blank stare!  I’ve met awesome mentors and friends who provide me valuable mentoring, coaching, suggestions, ideas and feedback.

The best way to become a millionaire is to know one right?  Find one and pick their brain!  Ask them to be your mentor or hire them as a coach.  If they are in your field of endeavor you need to get to know them.  Like now!

Are any of you Millionaires???? (shameless plug)

What did I miss?

I’d love to know What you are doing to join the Millionaire Club???

***Another point on the importance of buying income producing assets…The first iPhone was released in June of 2007.  That phone cost $599.  In June of 2007 Apples stock was trading at $18.82.  $18.82!!!  Today their stock is trading at $137.39.  So if you’d spent that $599 on Apple stock instead of a phone (by the way, where’s that phone now), your 31 shares of Apple would be worth $5,951 today.  That small decision would have made a HUGE impact on your bottom line.

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