Hello Sophisticated Spenders!
People think millionaires are mythical people. They think there are only a few ways to become a millionaire:
- Inherit the money
- Win the Lottery
- Have a hit record
- 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.
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.