If you watch the news these days, you may notice that a whole lot of people seem to believe that the American dream is dead. No one can get ahead and the notion of “the millionaire next door” is no longer attainable. Well, fortunately for everyone, you can still become a millionaire. The American dream is still alive and you can achieve anything you set out to achieve. But you have to WORK hard! No one said it was easy to be successful. No one said you can become financially free without sacrifice. And you sure as hell can’t rely on the government to help you out. It’s all on you to achieve what it is you want and I wouldn’t have it any other way.
So How Do Rich People Handle Money?
There has been study after study done on how millionaires handle money and one of the most extensive studies I’ve seen, was done by Dr. Thomas Stanley.
As Dr. Thomas Stanley, author of “The Millionaire Next Door” points out, one of the most popular chapters in his book (among millionaires) is Chapter 2, Frugal, Frugal, Frugal. This chapter details the frugal lifestyle of millionaires in terms of the modest prices paid for clothing, shoes, watches, motor vehicles, etc. Check out the book, it’s one of my personal favorites.
Chapter 2, is essentially the most important takeaway of the entire book and it says that millionaires budget, avoid debt at all costs, and invest a lot of money. But, they are frugal because they are content with what they have.
So How Can You Do It?
Obviously, becoming a millionaire or being financially free is not an easy feat. It takes a lot of work! It takes a lot of discipline! But it is still a possibility…look at all of my fellow personal finance bloggers, they know it can be done and they’re documenting exactly how they’re doing it! So, why not find a person you may look up to, who is successful with money and find out how they handle their money? If you handle money the same way they do, I can probably come to a conclusion that you will also be successful with money.
You can also find a financial plan that works for you and stick to it. It doesn’t have to be difficult. I actually prefer that it’s simple to understand because that means that it’ll be simple to follow. My recommendations are:
- Create a Budget
- Pay off all Debt (except for your mortgage)
- Build up an emergency fund worth 6 months of expenses
- Invest in Retirement
- Pay Off Your House
- Build wealth and achieve Financial FREEDOM!!!
Why Aren’t More People Free?
Are you happy with what you have? The answer to this question is important in knowing if you will become rich or not. Most millionaires are content with their $20-$30 pair of jeans, used car, and modest homes. They dont feel the need to try to impress anyone and they don’t care about what a stranger at a stoplight thinks about their car.
So, maybe the reason that people feel like getting ahead financially is a pipe dream is because they spend their days finding ways to buy convenience and focus on how they can keep up with the Jones’ instead of focusing on building wealth and increasing their net worth. The size of your income doesn’t matter if you’re making more money AND spending more money.
90% of millionaires are first generation rich, meaning that they are self-made millionaires. They didn’t receive inheritances. They worked their butts off, had a plan, were disciplined with their money, avoided debt, and invested month after month, year after year.
They did it, and you can too!
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