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Thursday, 22 October 2009

How to Become A Millionaire

Spend Less Than You Earn.

My wife and I have done fairly well with our finances. One reason for this is that we spend less than we earn. Another, and perhaps better, way to look at this is to earn more than you spend. Don’t get me wrong, I think spending money is good. But living within your means is the key to financial success. If you can combine both of these principles, earn more and spend less, you will be ahead of 95% of the world.

Save and Invest.

Money saved is worth more than money earned, and you should take advantage of that principle. Once you have a surplus of money, you need to do something constructive with it. Saving and investing is the best way to do that. Compound interest has been called the strongest force in the universe, and you want that force working for you. There are many ways to invest, and as long as you make wise investment decisions and let time and compound interest work for you, you will be successful. Start by paying yourself first.


Earn money, spend less than you earn, save and invest, repeat. After that it’s just a matter of time. Even if it takes years or decades, the process really is that simple.

Is it really that easy? Yes. It may not seem as easy as I laid it out here, but it really is. Remember, this is not an overnight get rich quick scheme. It takes time, planning, and a little luck along the way.

Get started. If you want to become a millionaire, you need to decide to do it and get started. If you are not be able to save money right now because of debt or other financial obligations, you should work on those issues first. A good place to start is with Dave Ramsey’s Baby Steps. This is a tried and true method for setting up an emergency fund, paying down debt, and beginning your investments. Once you have that started, you can begin your million dollar journey.

(Source: cashmoneylife.com)

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