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

Hah! My original "Millionaire To-Do List" before I digitized it :) I came across it when flipping through my "idea book" the other day. This one actually made it to fruition, but unfortunately a good 25-50% are still in the works or on hold. But hey, that's what keeps us going, right? Our dreams and visions for the future!



PS: If you don't do something similar already, you should totally give it a shot. Increases the odds of accomplishing your goals, while at the same time helps to hold yourself accountable :)
PPS: Writing down your accomplishments each day is also a great idea.

Labels: goals, million dollar club, millionaire love, retirement

If not, an even $200k certainly would do it. What about for you? I have to give a big shout out to Living Almost Large as she posted something similar the other day and it really got me thinking.

She adds a huge political twist on it, but i'd totally recommend it if you find this topic interesting - at least for the pretty passionate comments being thrown around on it! (you say one thing about Obama or McCain that someone doesn't like and they are allllllll over it..haha)

But what type of salary or other income would it take for YOU to feel "rich"? Have you ever thought about it? I have the tendency to consider one's net worth to determine that, so it was pretty cool to think a bit differently here. I think for me, I'd have to bring home somewhere in the $150-$200k range if i really didn't wanna have to worry about money again.

But to be honest, i really don't think a set salary determines whether you're wealthy or not. It's HOW you spend it, or not spend it, that's the determining factor.

There are plenty of people blowing through $200k-$300k a year on their lavish lifestyles, yet barely saving a few pennies. I wouldn't consider them rich, even though they may look it (The Millionaire Next Door anyone?). At the same time, there are a select few making $500k+ and saving 90% of it while living comfortably and in peaceful bliss. Your salary/other income definitely plays a big role, but you have to account for where it goes to.

Then we have those crazy frugal bastards (meant in the most loving and sincere way possible) who make $60k and invest 20-30% into their already heavily fortified nest egg! So while they may not be rich at the present time, I guarantee they'll make it faster than those a lot of those non-saving fools making twice that.

As LAL also mentioned, $250k will go a lot farther in places like Smallville, USA than New York City or LA. So that has to be considered as well. I can tell you that splitting a bachelor pad in NYC with 5 people cost me more way more than my old abode in Fairfax, VA which i only split with one person. The nightlife was totally different, but so was the fatness of my wallet ;)

Does all of this really matter though? not really....unless someone's about to pay us our "ideal" amount anytime soon, you can go ahead and file it away in your "good to have on hand, just in case" folder. And I'm still gonna have to base my views on the rich depending on what their net worth is since it shows whether someone's saving/investing or just spending it all away.

Definitely leave a comment with your magic # though, as ya never know who'll be reading it! Plus i hear that if you concentrate on it long enough, you can force it to happen circa "The Secret" kinda stuff. But you can think what you want ;)

Labels: career, millionaire love, net worth

BOOK: The Millionaire Next Door
AUTHOR: Thomas J. Stanley, William D. Danko
SEXINESS: 4 Thumbs ups! (toes count)

Tied for my all-time favorite financial book! Where as The Automatical Millionaire (the other favorite) shows you HOW to reach your goals, this book helps get your "financial mind" positioned right - and does so brilliantly!

There's one defining concept portrayed throughout:
Always live below your means.

You do this, no matter your age, salary, etc, and your wealth will grow exponentially - and so will your peace of mind :) That's not to say you can't be a millionaire AND have fancy things, of course, but just that these guys choose not to.

Even if you DO earn a crazy high income, it doesn't necessarily mean you'll be rich (aka have a high net worth). The same holds true with the highly educated:

"How can well-educated, high-income people be so naive about money? Because being a well-educated, hight-income earner does not automatically translate into financial independence. It takes planning and sacrificing"

Amen brother. If only they knew about our blogs! haha ... So who are these Pimps?

According to Stanley & Danko, the average millionaire is:

• 57 years old, Male, and married with 3 children. 70% of them earn 80% or more of their household income.
• Self-employed (2/3rds of them). 1 in 5 are retired.
• A homeowner. 97% of them own homes, which are valued around $320,000.
• First-generation affluent (80%) - meaning they are self-made millionaires, not because they inherited all their money.

And, on average, they:

• Invest nearly 20% of their household realized income EACH YEAR.
• Have total annual realized (taxable) incomes of $131,000, with average incomes at $247,000.
• Live well below their means, wear inexpensive suits and drive American-made cars.
• Have wives who are planners and meticulous budgeters. (they know what's up! Sexy all the way baby... i don't care what others say).
• They have a "go-to-hell fund" - basically, enough to quit working for 10+ years if they really wanted.
• And, are mostly tightwads! haha... hence, one of the main reasons they agreed to complete a long questionnaire for a few crispy dollar bills.

This is all broken down throughout the chapters, so if you get bored with one pile of stats, you can easily move on to others. They also categorize high earners into what they call PAWS and UAWS, and then compare the differences between them. PAWS are "Prodigious accumulator of wealth", and UAWS are "Under accumulator of wealth". You want to be a PAW ;)

In all honesty, reading this book has become the financial ying to my yang. It goes right up there with the purchase of our house and living off a budget - I love it! You really do get to know their way of life, and it really sticks.

The ONLY thing i'd like to see is an updated version of this bad boy. While i'm sure this "way of life" hasn't changed much over the years, i bet the stats sure have! A ton of stuff has happenend since this book published in 1996. (You hear that Stanley & Danko? If you do this for me, I promise you 1 (one) sale of this new book)

I totally recommend this book to anyone interested in furthering their financial education. A+ baby, all the way!

------------
* You can buy the book here: The Millionaire Next Door
* And you can check out other book reviews here: Book Reviews

Labels: book reviews, education, millionaire love

Man it was hard getting up this morning! I think i overdosed on hazelnutt coffee yesterday while sitting in 9-hour beach traffic...which is sad, considering i'm sipping on MORE as we speak ;) Addicted much? haha...

At any rate, I came across a link for the Motley Fool in my inbox the other day, and think you might enjoy it. It's one of those "million dollar calculation" type articles, which are always fascinating to me - especially considering i'm working on my OWN millionaire plan!

The stats, themselves, never change of course, but the way people write about them sure do. This particular article states that if you do the following ONE TIME ONLY in a year, you could be ritch b*tch! (in the voice of dave chappelle on james brown):

• Max out your 401k contributions for the year
• Max out your IRA contributions for the year
• Earn historical average returns of 10%
• And do so by the age of 26.

You will become a millionaire by the time you retire!

Sexy, right? Sure thing, but as cool as it sounds (anything to do with a million dollars is cool to me!), it's not as simple or easy to do. A lot of the variables are discussed in the article, but to reach the above, for example, it means you'd have to come up with that initial $20,500! Y-I-K-E-S.

Compound interest is your friend, but it sure doesn't perform miracles ;) Plus, there's the whole "inflation" stuff, but that's another story. The Fool also adds:

In order for most 26-year-olds to save $20,500 in a single year, they'd either
need to find a fabulously high-paying job or a rent-free room in their parents'
basement. Either way, they'd probably be living on a strict diet of ramen
noodles.

Haha...agreed. Of course, saving a butt-load early on is killer for any goals you might have. Just because you can't be superman and invest a huge lump sum like that, by all means keep plopping those dollars into your account!

And if your goal is to indeed reach that $1 million dollar mark, then create your own plan and stick to it (I used this millionaire calculator to get started on my personal goal). You'll be that much closer either way you look at it.

And be sure to holler back too so we can track your progress and learn :)

Labels: 401k, Ira, millionaire love, retirement

BOOK: A Million Bucks by 30
AUTHOR: Alan Corey
SEXINESS: 17 (that's a lot)

I think someone cloned me, and wrote a book! haha... well, in the writing style that is - I'm def. not as brave and/or close to reaching that $1Million mark! A very fun read though, nonetheless. I can say one thing, it def. won't be like any other financial books out there, that's for sure ;)

Remember how I posted about my millionaire to-do list earlier? Well, think of this book as the final product of that, but with a totally different approach to it. Along with a healthy mix of adventure, and college spirit!

That being said, I wouldn't say this is for everyone. While his stories and tips are pretty damn fascinating, it's definitely for a "younger" audience (think early 20's, 30's). I'm not sure the "mature" kind would allow for such humor and select curse words scattered about. But, then again, if you're even on my blog reading this, it might be exactly what you're looking for ;)

Here's an excerpt from one of his "extreme cheapskate strategies":

"Buy one pair of multipurpose shoes a year. Don't buy any others. If shoes make or break you with any business deal, date, or interview, believe me, unless it's a girl with a foot fetish, it isn't the shoes."

Haha...see, totally funny! AND budget conscious. Without going too much into it, here are four key ingredients which helped him along his journey:

1. He's frugal. And I'm not talking about a little here and there, i'm talking about hardcore frugalness. The king of Ramen, and the master of ghetto living - all in the name of saving $$$.
2. He does his research. This is probably key #1 to his accomplishments, he doesn't do anything without consuming all he can on the subject.
3. He buys real estate. Mainly to "flip" or to rent out as an investment. This is especially where #2 above comes in - if you know what you're doing, there's money to be made.
4. He's extremely outgoing. If there's anything this guy has that sets him apart from all other wannabe millionaires out there - this is it. It takes a LOT of guts to do *most* of the things he talks about in this book, and there's no way it can be done w/ out this trait. Did I mention he's a self-proclaimed "Reality Whore"?

To be honest, that's really the whole kit and caboodle. You mix that with some personal tips and a butt-load of crazy adventures, and you've got your self a nice little read here. And there's something to be said for the way he conveys his messages. He's actually a really intelligent guy (in case i've already scared you away):

"I like to think that making a million dollars is like losing fifty pounds: Both
provide new freedoms and options to the people who achieve these goals, but
neither of these objectives can be achieved overnight...Just like there is no
product that will help you lose twenty pounds in a week, the chances that you'll
make a ton of cash overnight are pretty slim (so to speak)."

He doesn't go too much into step by step processes such as The Automatic Milionaire, but it's definitely a great motivational read. And while I, personally, don't have the balls to follow through with such tenacity, i'd be lying if i said it didn't get me to revisit my game plan!

------------
* You can buy the book here: A Million Bucks by 30
* And you can check out other book reviews here: Book Reviews

Labels: book reviews, millionaire love

Welcome to J's "Million Dollar Club"! If you've ever dreamed about becoming a millionaire - and you actually want to DO SOMETHING about it - you're in the right place!

Can you imagine how killer it would be logging into your accounts one day and seeing a cool million there? I've been all about it the past couple years and there's really nothing stopping me now. I've got the desire, the patience, and more importantly the game plan! (what this post is all about).

And I'd love for you to join! Check out my "millionaire to-do list" below and then create one for yourself. It doesn't have to be much, just make sure it's realistic so you'll actually go through with it. Then review it every once in a while to remind yourself WHY you're saving so much more than all all those crazies around you ;) After that, just keep Motivated! "The Automatic Millionaire" and "The Millionaire Next Door" are excellent books for this. All the plan really entails is time and habits. You master those and it's easy breezy my friends! (besides, of course, finding the money to invest). But regardless, you have to start NOW.

In order for me, J. Money, to become a millionaire, I pledge to do the following:

Max out my 401(k) every year. Max out my Roth IRA. Save/invest 1/2 of all future bonuses. Sell unwanted stuff on eBay/Craigslist. To be frugal, but not insanely frugal ;)

$16,500 invested + $16,500 matched! $5,000 invested --> stocks, funds $2,500 *currently frozen... $500 est. $1,000 est.

That would mean a total of $39,500/yr if I could pull that off! Using CNN-Money's millionaire calculator with a conservative interest of 6%, and stripping away taxed vs. non-taxed money along with inflation, I will see a cool $1 Million in approx. 13 years and 9 months!

This means I will become a millionaire by the time I'm 43!

That $1 million might not actually be *worth* $1 million by then (and I can't predict future returns), but to be honest that's not what it's about for me. All I want is the ABILITY to retire happily with no concerns about money at all. And I'm pretty damn sure being a millionaire would cover that ;)

------------------------------------------------------------------------------------
So what do ya say - ready to join the club? Get your own pledge jotted down, and then link back or leave a comment and I'll add ya to the list! Here are the current soon-to-be millionaires:

1. James @ DINK's Finance
2. Ginger @ Ginger Won't Snap
3. Erica @ Erica's Funny Farm
4. Brian @ My Next Buck --> Brian's Millionaire List
   
5. Brad @ Enemy of Debt --> Brad's Millionaire List
6. Paul @ Fiscal Geek
7. Shawanda @ You Have More Than You Think --> Shawanda's Millionaire List
8. Financial Samurai --> Financial Samurai's Millionaire List
9. Brandi @ A Life Change: My Journey To Happiness --> Brandi's Millionaire List
10. Yellow Piggy Bank
    
11. Michelle @ Penny and Nickel to Wealth --> Michelle's Millionaire List
12. O1SP03 @ Five Girls Ditching Debt
13. Megan @ Student Charade --> Megan's Millionaire List
14. LuLu @ How I Save Money --> LuLu's Millionaire List
15. Lisa @ Cents To Save --> Lisa's Millionaire List
16. Jayde Moss @ Making Me a Millionaire --> Jayde's Millionaire List
17. Broke M.B.A. @ The Broke M.B.A --> Broke's Millionaire List
    
18. Ryan @ Planting Dollars --> Ryan's Millionaire List
19. Roger @ The Amateur Financier --> Roger's Millionaire List
20. The Financial Blogger --> Financial Blogger's Millionaire List
21. Money Wise 24 --> Aleks' Millionaire List
22. BudgetBabe @ Lean with Green --> BudgetBabe's Millionaire List
23. Sabrina @ Freedom 45 --> Sabrina's Millionaire List
24. Clayton @ Just Good Financial Advice
25. YoungAndThrifty --> Young And Thrifty's Millionaire List
26. Jeff Kosola @ Deliver Away Debt --> Jeff's Millionaire List
27. Money Handler @ Money Handler's Millionaire List
28. Broke by Choice @ If I Were a Wealthy Girl--> Broke by Choice's Millionaire List
29. Money Reasons --> Money Reasons' Millionaire List
30. Jane @ See Jane Get Rich --> Jane's Millionaire List
31. Barbara Bryn Klare @ Upside of Money
32. Meghan Fife @ Thoughts on the Real Life --> Meghan's Millionaire List
33. Ciawy @ Run, Work and Save
34. Benjie @ Zordane --> Benjie's Millionaire List
    

-------------------------------------------------
Badge Code:

Copy: <a href="http://www.budgetsaresexy.com/2008/04/my-millionaire-to-do-list.html"><img src="http://www.budgetsaresexy.com/images/million_dollar_club_seal_M.gif" alt="Million Dollar Club" border="0" /></a>

Copy: <a href="http://www.budgetsaresexy.com/2008/04/my-millionaire-to-do-list.html"><img src="http://www.budgetsaresexy.com/images/million_dollar_club_seal_S.gif" alt="Million Dollar Club" border="0" /></a>

Copy: <a href="http://www.budgetsaresexy.com/2008/04/my-millionaire-to-do-list.html"><img src="http://www.budgetsaresexy.com/images/million_dollar_club_80x15.gif" alt="Million Dollar Club" border="0" /></a>

Labels: goals, million dollar club, millionaire love, retirement

BOOK: The Automatic Millionaire
AUTHOR: David Bach
SEXINESS: To the max!

The fastest book i've ever read! And this is super impressive as a) i'm a sloooooooow reader, and b) it wasn't even a fiction book! haha... of course, i did just come back from a 4 hours plane trip :) But still, there was no way i'd finish it if it wasn't interesting in the least.

Was i impressed? Y-E-S. I give it an A+ overall! SUPER easy to read, SUPER easy to follow, and SUPER easy to act on. I'm a big fan of action over theory (most times), and the author listed simple step-by-step items to follow after each chapter. Which also makes it easy to put down, and pick up at any time. And unless you're already a millionaire, i'd recommend at least skimming it at the bookstore.

The general concept: Save at least 10% of all income for yourself, and automate EVERYTHING. he breaks it all down nicely, and even gives out the names and contact info of those he rates as pretty high.

According to Bach, there are only 3 things you REALLY need to do:

1. Decide to pay yourself first 10% of what you earn - We've all heard it, but not everyone follows it. Pick a % that works for you (he recommends at least 10%, but even 2% is a start), and let it build. automate it.
2. Make it automatic - Set up direct-deposits from your paycheck into your retirement fund. Automate cash xfers into your "rainy day fund" (3 months of expenses). Automate bill payments through your checking acct. Basically, handle all financial transactions automatically.
3. Buy a home and pay it off early - A MUST in his eyes. While this step is the hardest of the group, he's pretty adamant that if you rent you'll almost never become a millionaire. No matter your current situation, buying pays off in the long run. Once you own, use the "bi-monthly" payment plan to pay off the mortgage 7-10 years earlier.

There's a TON of other good information in the book, like how to get rid of credit cards faster, and finding your "latte factor" (daily expenditures that could easily cut in half), but I really enjoyed the stories on how people have actually followed this! These days, it's easy as pie to automate everything. As long as you have a steady stream of income, you're golden. Even if you don't, following the main rules will still guide you nicely.

To be honest, it's just nice reading something that is not only do-able, but extremely easy! And you know what? I actually believe i'm going to be a millionaire! Not 100% because of this book, although the motivation is killer, but because if you can learn how to save it's just a matter of time. It won't happen next week, or even 5 years from now, but I'll tell you one thing - when i'm leaning into the mid-life stage, you better believe i'm not gonna have a crisis!

The only thing i didn't like hearing was that "you don't need a budget". Psshhh, come again? I think all he's trying to do is to get you to focus on the 3 main points above, and basically forget all else you've tried & failed at. I see his point, but i'm not listening. Doesn't he know budgets are sexy!

At any rate, take what you will from all of this. Everyone's different, but i'm fairly confident you'll at least get one thing out of it. I personally put my stamp of approval on this bad boy, and about to pick up another copy for my bro. $4.15 used on Amazon?! Shoooooot....i'm keeping mine ;)

------------
* You can buy the book here: The Automatic Millionaire
* And you can check out other book reviews here: Book Reviews

Labels: book reviews, millionaire love, retirement, saving