If a millionaire told you how to be rich, would you listen?
Even if it's the most boring advice ever? I was talking to my boy Brad the other night and somehow we got on the topic of simple easy advice, and he used millionaires as a perfect example of this. And it's so true!Most millionaires make their money slowly, over time. Getting Rich Slowly, if you will, yet not many care to put it into use because it's so boring. And, well, slow. But the truth is this stuff works! It takes a lot of hard work and frugality, and many times sacrificing, but the end goal of becoming financially free is some damn good motivation.
If you like this sorta stuff, I highly recommend reading The Millionaire Next Door. It's one of the greatest books in this field and really breaks down the common traits of millionaires out there. And you'd be surprised that not everyone in the book makes a ton of money! A lot of them do, but many also get wealthy by living below their means, saving 20% of all their income, and staying put in their paid-for homes (something I wish I could do myself! Haha...stupid military blood in me).
Living "for today" is cool too if that's how you see the world, but you better enjoy what you're doing because you'll be workin' for a looooong time. One of the benefits of creating wealth is that it shifts the power from the outside world to YOU! That means YOU get to decide how much to work and how to live your life, no one else. It's called financial freedom, and millionaires cherish it like no other. (It's also what I keep in mind whenever jealousy takes over from watching people lavishly spend their money ;))
Millionaires are millionaires for a reason. If you truly want to learn how to grow your money like them, listen up! The old excuses of "it's not for me" or "I would do that, but...." don't fly in their world. They set up a plan, save their money, and enjoy all their spoils. If you're lucky enough to know any of them, buy 'em a beer and pick their brain! It just so happens they also enjoy giving back ;)
Labels: education, millionaire love, money management
posted by J. Money at
8:02 AM
14 Comments:
Love that book! I used to blame our lifestyle on why we were always catching up and not getting ahead -- we move a lot with the military, so I felt like we were at an unfair disadvantage because we can't buy a house and stay put, we're regularly dealing with expenses that always come with a move, etcetc...
No more excuses! We are going to deal with what our life IS and stop thinking about how it could be easier. We're getting control of our finances to make them work for us, despite what and no matter what curves our transient lifestyle throws at us. Woo-hoo!
The sad thing is, is that people will say "Yes I will listen to what they have to say", agree to follow their advice, and then do something opposite, or do what they always have done.
The secret to success with money and becoming a millioniare is easy, learn all you can, create a plan, FOLLOW that plan, and track your results.
This is a great plan that I used http://www.transformyourmoney.com/personal-finance-money-management.html
@Financial Samurai / Sam
Can you point us to some of the PF's you mentioned above?
I would probably listen, but everyone's situation is different and I'd definitely find the one, two or 10 different "lucky" situations a Joe Shmoe had before he became a millionaire. I do believe everyone can get rich slowly, but not everyone has the stars aligned for them to just start scrimpin' and savin'!
"It's also what I keep in mind whenever jealousy takes over from watching people lavishly spend their money ;)" Tell me about it! Living in a ritzy area of Las Vegas, I see it on the roads everyday, Lamborghini's, Ferrari's, Audi R8's, Maserati's, Maybach's, even a Bugatti Veyron. The amount of bling in this city drives me nuts. It also doesn't help that my wife likes to travel to rich areas like La Jolla and Newport beach in California. How is a guy supposed to get rich slowly when I want to eat at Joël Robuchon at the MGM?
-Tough to be StackingCash
@Financial Samurai - Great idea! Like Anonymous mentioned in the comments below you, know of any we can check out?
@Budgets are the New Black - Wow, I love your enthusiasm!!! Getting me all motivational up in here ;) And I totally get the military lifestyle being a Marine Corp brat myself...was too young to consider the financial implications of it all, but it most definitely plays a part in me not being able to settle down now. Always got ants in my pants!
@Melanie - Yup, that would do the trick. I think people really have to WANT TO fix their finances too. Everyone wants to become a millionaire, but you have to want it real bad before you can reach it...kinda like the whole dieting plans and stuff.
@Mr. ToughMoneyLove - Happy Guys Next Door are good to hit up, yes. If I had a HappinessIsSexy blog I'd be sure to mention it ;)
@Anonymous - I bet he says his own blog ;)
@Investing Newbie - Possibly, but it doesn't mean you can't change your current situation ;) At least with a butt-ton of work and hardcore persistence.
@Anonymous - Hah! I have a dream of both owning a fancy car AND living in La Jolla - it's not easy ignoring it, that's for sure. But you do realize that once we save enough we can actually go out and take advantage of all this stuff right? $hit, you could even splurge a little along the way, as long as you keep on track and don't let it kill your game plan :)
I recommend "your money or your life" as another book to check out
Sure, I'm pretty sure Free Money Finance is a millionaire, and his posts have a lot of insight.
Sun Financial Diary has a net worth of 900K, so he's up there.
I might be able to provide some thoughts on my site, but I haven't disclosed my net worth, so I guess I don't count :)
YES! I bet Free Money Finance is a millionaire for sure...I know he donates all his blog money to charity, and we're talkin' big bucks too. I really admire that guy, he's a pimp.
Bingo! He is a pimp, and writes a TON! Very admirable guy. Too bad I don't have a relation with him. Something I need to work on for 2010. At least I got my "The Worst Seat On An Airplane Is The Best Seat In The Office" entered in his March Madness competition!
I really think it's important to read PF blogs from wealthier people too, b/c frankly, they think a little differently than those who are discovering their wealth, or trying to pay off debt. That was done for them ages ago, and they are just looking at different things.
This is one of the reasons why I created my blog. So many of the PF blogs I read are people getting out of debt or little net worth. I'm not knocking them, just not what I'm looking for to help advance myself. It's fine to monitor progress and some of the things are not bad ideas. But as I state in my blog, it's akin to someone discussing how to raise children, yet haven't had any themselves. I've searched the blogosphere; I've found a few blogs, and can post them if you want. Most are posted on my web site.
I won't state my exact net worth but said like Dr. Evil says it's over "one million dollars" In reality 1 mil doesn't buy you much these days and just the first hurtle to get over. But it is a great feeling once you get there. It felt like the day I made my first dollar at my first job. Quite honestly my goal is to discuss topics like you mention and how to get there.
That is very true you're right. Most of us come from all different places in our lives so we tend to stick w/ the ones we can relate to more. Which is cool, but spreading out to some other "time frames" might get our wheels turning differently.
Perhaps I need to be hanging out with you more ;) Oh, and can I borrow $10G's?
Sure as long as I get a cut in the profit :-)
I'm also older than many of the 20 year old youngins I see. I do have some time on my side. Compound interest is a wonderful thing! Except for Financial Samurai. He's ancient compared to me. :-)
Every year I try and catch up with you guys, you 1-up me ;)
Hey IJ, lend me 10 jiggas too pls! I want to buy a new fat LED HDTV 72"inch and a new sound system!
I've said it before, I'll say it again.. our net worths are illusions except for the cash in our bank.
Don't worry J, my Freedom Fund still has a ways to catching up to your net worth!
@FS:
I want a ROI, not a sucking hole in my pocket. :-) A TV is for my family to enjoy :-)
Yup about net worth and the reason why I prefer cash flow, over net worth :-)
"Which is cool, but spreading out to some other "time frames" might get our wheels turning differently."
Yea exactly, I would like to find a mentor. Someone retired who could give me words of wisdom. Unfortunately most of my financial/business education has been from reading and trail and error. I've had a few people offer some wisdom. I've also known peers and said "I should do the exact opposite of what they've done".
You can contact Thomas J. Stanley on twitter and see if he'll be your friend ;) After listening to all those millionaires he's GOT to be one! even w/out the book deals. hehe...
I'm almost through The Millionaire Next Door and it is the single most influential finance book (or blog, or article...) that I've ever read. It makes SO much sense. A bit statistic-heavy, but still amazing. I think some of it is a bit outdated because it was published in 1996, but most of the advice holds true today - be frugal always (even when you have money), don't spend spend money you don't have, and invest wisely. Most people are too lazy to try and make the effort, but I'm trying to take the Dr.'s advice and put it into action myself!
YES! Lots of stats but the meat of it all shines through and gets you to re-evaluate your ways :) Or at least your mindset. And you'd be amazed at the times it pops up in your head when you're out and about shopping and doing things - it's crazy. Glad you're enjoying it!
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