Steps to Millions...

God of Hell Fire

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There is perhaps no more important decision than to take charge of your own financial future. We live in a world full of opportunity, and yet most people are buried in credit card and other debt. We are surrounded by people who are getting rich, but most of us are jogging on the spot.
Although it is not easy to become mega rich, it is definitely within most peoples reach to become a millionaire, especially if you start young and develop the right habits. Sadly, many of us haven't and don't, but it is not too late to learn what the 'right' habits are and pass them on to your children and grandchildren. Anyone, at any age, can develop the traits that increase wealth and decrease debt. The truth is, unless you're lucky enough to receive a sizeable inheritance, you'll need to navigate your own route to prosperity.
There are many get rich quick schemes out there and many people are under the illusion that just buying a property or two will create great wealth. I have news for you....it won't! There is much more to becoming a millionaire than that. It takes time, effort, education, and patience. Sadly, many people fall for many of the scams out there on the internet, which actually take them further into debt rather than get them rich! So what can you do to start your path to financial freedom and security, well the first step is..........



Stop faking it!

Why do so many people spend money on "stuff"? They have top of the range PC's, brand new sports cars, fantastic music systems, the latest surround sound system and a HD TV, brand new kitchens and bathrooms, wardrobe after wardrobe of clothes and shelves and shelves of dvd's, you get the drift, I don't need to go on. The simple truth is, you can have money....or you can have stuff, but seldom do you have both early in life! Do without now so you can truly afford it in the future OR pretend you can afford it now to impress people and make them think your are wealthy! I know what I choose!
The 'Fake it' attitude is actually cultural and seems to be becoming more ingrained in British society. We aspire to be like the stars and credit is freely available, so, why not just buy that designer bag you wanted? The only reason people buy brands is to appear wealthy, even when they are not! Most people who buy designer brands don't buy it because it is well made, if they were truthful, they buy it because it makes people look at them and think, "wow, she must be loaded!". Why pretend? If your loaded your loaded, why pretend you are if your not? Its crazy behavior! Keep buying those designer shoes and top of the range surround sound systems you can't really afford, but I have news for you, your buying liabilities, and liabilities, especially when they get you into debt, hold you back from being truly wealthy!
So what should you do to become truly rich? Well, firstly you should be spending less than you make. Live a modest lifestyle and don't spend every penny you earn.....and more. It's scary how many people have spent their prosperity for the next 10 years on credit! Make the choice now! You don't have to be a scrooge, but you need to realise that you don't have to buy everything you see and want! When you are buying a new car, does it have to be top of the range and so expensive you will be paying for it over 5 years or more? Why can't you just get a basic model and pay for it in 2 years. Ask yourself who you are trying to impress by actually getting yourself into so much debt? People who choose wealth over "stuff" wouldn't consider ripping out a perfectly good kitchen and replacing it with a top of the range model, or getting the latest HD TV when they have one they bought 2 years ago that is in perfectly good working order. Why? Well, because they know that the money could be invested elsewhere, in an asset which will create true wealth and therefore eventually they will truly be able to afford the latest gadgets and cars and not have to get into debt to afford them!
The goal for many is financial independence, not actually becoming a millionaire, however, the 2 generally go hand in hand. If you can get to the point when your cash flow from investments is equal to, or greater than, your income from work then you have pretty much cracked it!



Learn from the Secret Millionaires

The second step and related to the above is to learn from the "Secret Millionaires"!
You're probably surrounded by them. They live in modest homes, drive older cars, brown-bag their lunches. They don't look like millionaires. And yet they're worth seven figures. These secret millionaires accumulate wealth while their neighbors spend themselves into debt. Every day, more people join the ranks of the secret millionaires. Do you want to be the family in the street with the nicest car..... on credit? Do you really need everyone to think your rich when you aren't? Or ....Do you want to be able to retire early and comfortably? It's your choice! You could be a secret millionaire too if you follow these tips:

  • Make financial security a priority.
  • Spend less than you earn.
  • Save and invest regularly.
  • Pay down your debt.
  • Own a home.
  • Maximize your incomes.



Steps on the wealth ladder

So you have decided that perhaps you aren't going down the financial path you want to, well here are some steps you can take to start changing your direction.
Decide to be financially successful

Some people believe the accumulation of wealth is an unworthy goal. Before you begin your journey to become an enlightened millionaire, make sure you can create wealth in a way that will support your inner beliefs and values.
This is different than wishing, hoping, wanting or even desiring to be rich, as above. Make a commitment that this is going to happen! Remember, financial independence is not an accident or matter of luck, and it usually requires some inconvenience; like doing without a new car for 5 years, or halving you clothes budget, or working longer hours and spending less socially!
Develop a written financial plan

Write down your dreams and how you plan to make them come true, no matter how silly they sound. Write down your ideas and work out how to fulfill your ambitions. Write down all your options and work out how you can start following them up. Make a plan, then go for it! No matter how many people smirk at your ideas and ambitions, they won't do once one of your dreams comes true and makes you financially independent!
Get a Saving Habit

Got a bonus? Got a gift? Social life dipped and you have surplus cash? Don't spend it. Save at least half of every pay raise, act as if you never got it. Get the extra money out of your account as soon as you get paid and put it somewhere you can't dip into it. Get into the habit of saving. Build up an spare fund so you never have to dip into your savings accounts. Keep this fund topped up.
Live below your means

This bit is simple. Buy a house that is adequate not extravagant. Shop at Primark not Harvey Nic's and don't be a walking advert for the wealth you have not got yet!
Also, this may come as a surprise to you, pay yourself first. Deduct 10 percent off the top of your income, and deposit it into your investment account. Convert all your credit cards except one to debit cards so it is impossible for you to go into debt. Then live on what is left over.
Understand how money works.

Most of us never studied finance or investing in school and those who went to university and studied accountancy quite often have absolutely no clue how to balance their own personal finances. Most of us were never even taught to balance a checkbook! To master anything, you have to understand it. Read. Study what successful people do. Take classes and learn about money and how to make the most of it.
Lay off the credit

Remember, debt holds you back. Only use your credit cards sparingly, unless you are taking advantage of cash back deals and you will pay off the balance every month. If you have more than 1 card, why? You should not need it. Cancel the others and pay them off. Master your relationship with money. Some of us spend for excitement, to show off, to prove we can. Some of us are addicted to spending, and some of us are just careless about it. Whatever your relationship with money, understand it and develop a relationship of respect, appreciation and gratitude. Use your money, rather than allowing it to run your life.
Make money Work 4 U, not U 4 it

There are loads of ways for the smaller investor to start accumulating a pot of cash. If you save at first then you can look at investing. Keep your eyes open for good investment opportunities. Aim for short, medium and long term investments. Your money pot will gradually build. Most of us either spend or speculate. Both are roads to disaster! Invest in things you understand. Invest cautiously, wisely, and regularly. The objective is not to "make a killing", but to get rich over time. Know and obey the distinction between gambling, and putting your money to work for you.
Invest your 10 percent surplus into investments that can earn at least 10 percent. A £1 a day invested at 10 percent interest becomes a million pounds in 56 years. In other words, anyone can become a millionaire by investing only a £1 a day - £30 a month. If you want to become a millionaire faster, then invest more money or find ways to make your money grow at higher rates of return. Simple!
Don't run from shares

There's a huge difference between the gains (and losses) you can make by investing in the stock market, when compared to returns from saving accounts. In stocks, you can make unbelievable money -- it is not uncommon for people to have doubled their money in the last one year.
When you put your money in a bank account, you loan the money to a bank for a fixed return. Think about this for just one second. The bank takes your money, offering to look after it for you and in return you get a fixed interest rate. Hang on a minute..... why are you not paying them to look after your money? why are they paying you? Well, of course that's because they take your money and invest it. You give them your money and they invest it and make large profits. A high percentage of your money will end up in the stock market. The bank then takes their profit and gives you a small percentage....your interest rate! At the end, you get back your original amount and you are paid interest on the same.
When you invest in stocks, you invest in the equity shares of a company. That makes you a shareholder or part-owner in the company so you are entitled to a share in the profits. Why give your hard earned money to banks so that they can benefit from it? Why not learn how to invest in shares and get more than a small amount of interest in return? Ok, on the flip side, you could lose heavily. But that's the risk of high profits, if you study stock market investing your time and effort will pay off in the end!
Increase Assets

Most people try to increase their income, and that's a mistake. Making more money means paying more taxes. It takes time and hard work. And, when wealth arrives in the form of cash, it's easier to spend. Millionaires buy stocks and buildings. They invest in assets that will make them rich – and that are hard to spend on a whim!
Be your own boss

You don't have to quit your day job but you can start up a business on the side. Most people do not inherit wealth these days, most of the wealthiest people are self employed entrepreneurs. If you have a skill worth selling, or which you can use out of your normal office hours, start using it to build your own business.
Get professional advice

If you are not a financial genius get yourself someone who is. A good financial planner can help you fill your portfolio with the right investments and dump the wrong ones. However, get someone with a good reputation as at least half of the financial planners out there are purely sales men with poor knowledge. It's best to go on recommendations so start asking around. If you can't afford to have a financial planner manage your money or the cost would not be justifiable, many of them will review your portfolio and make recommendations for a one-time fee. A good financial planner will also educate you so eventually you will be ready to run your own affairs.
Imagine yourself enjoying an abundant lifestyle

Every great fortune started in someone's imagination. Imagine yourself living in the home of your dreams, enjoying ideal relationships with friends and loved ones, contributing to the world with your unique talents and abilities. Imagine the fortune you could create and the good it could do. Believe and you will see it.
Chase your dreams

Lastly, to become a millionaire you really have to start being creative. Invest in your ideas! Don't just dream it, create it, develop it and live it. Sabeer Bhatia, the founder of Hotmail, thought it would be nice if people could access free e-mail. That is what got him started: a whim!

  • Don't dismiss your ideas as ridiculous outright.
  • Don't just sit on smart plan. Chalk out how you would want to execute it. Work out the details.
  • Don't let future constraints, like finances and feasibility, curtail you. One step at a time.
  • Don't listen to people who laugh at your ideas. It's only because they are jealous of them and of your creativity and ability!
  • If you have it all figured out, ask around for investors. Tap your family circle, acquaintances and friends. Chances are, you will have an investor eager to pool in capital to realise your dream. In fact, you may just be able to sell your idea to a venture capitalist.
  • Do not get fixated about coming up with a 'never before thought of, original idea'. Take already existing ideas and make them better! The important part is that your idea should add value to the product and make it better.
 

Doc

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There is perhaps no more important decision than to take charge of your own financial future. We live in a world full of opportunity, and yet most people are buried in credit card and other debt. We are surrounded by people who are getting rich, but most of us are jogging on the spot.


Some good stuff here GoHF..... Makes you really rethink the way you live your life on a daily basis. I need to practice some of these better.
 

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