How to Become a Millionaire

By Jeff Schneider

You’ve wondered what the person sitting at the desk next to you is making. How they afforded that all-inclusive trip to the Bahamas and still afforded a new car. 

But did that person sitting next to you just inherit some money? Are they bleeding through an old trust account? Or maybe just burning through savings? Or worse, one of those horror stories you hear about racking up $60,000 of debt on credit cards. 

Perhaps your boss is giving them all those raises you’ve been missing out on the past few years. 

You can’t ask… 

Money is a taboo subject. 

It’s personal and you’d be better off ignoring those neighbors. 

Instead, we are influenced by these neighbors and it has left many people broke just a few years before retirement. 

A recent study of Americans between the ages of 50-64, showed that about 51% didn’t even have a retirement account. And those that did have an account, the average balance in all of their retirement accounts was $46,032. 

Are you overspending and under-saving, just like the rest of the nation?

 “I am only one, but still I am one. I cannot do everything, but still I can do something; and because I cannot do everything, I will not refuse to do something that I can do.” – Helen Keller

 

According to the Bureau of Labor Statistics, on average American household spends 36.9% of their gross annual income on rent/mortgage and utilities!

 

So let’s do the math…

 

If your annual household income is $50,000, you’ll spend $18,450 on rent and utilities and will have $31,550 to cover all of your other remaining expenses.

How about this one: an average American household spends 5.7% of their annual income on restaurants – not counting regular grocery items. That’s $2,850 a year, or $237.50 per month, based on the $50,000 annual income.

5 Smart Money Moves For Couples

Here are 5 practical steps every couple (married or engaged) can take to protect and strengthen their relationship, while implementing sound financial habits.

  

1. Straight money talk

  

Money has been a taboo subject among couples for way too long. It's time to break the silence and start talking. Set aside one night a month for your "money talk." Do it over coffee and dessert, or after your children go to bed so there are no interruptions. Be honest with each other and listen. Use that time to discuss problem areas and possible solutions. Don't waste it on playing the blame game.

The Most Important Choice

It Is Up To You

Every day, every minute, every hour, we are faced with choices. Most are minor, but some are the most important decisions we will make in our lives. How do we make the right choices? Today, Jason Leister gives you some guidance.

Craig Ballantyne

"The most important things to know in life take a lifetime to learn. Our first lessons come early -- but we grasp only the surface. As we gain life experience we gain deeper understanding. All great truths are both simple and complex, easy to understand yet difficult to master. "- Mark Ford

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..The secrets to a millionaire's success

There's no real practical reason to ask "who wants to be a millionaire?" because the only people who won't put their hand up are religious types who've taken vows of poverty and those who are already multi-millionaires. Unfortunately, there's a big gulf between those who want it and those who do the things to make it happen. 

Based on recent statistics on UK household income, millionaire-dom is not something that's going to happen for most people, even with the dubious benefits of inflation. An adult earning the median level of income (£26,200 a year in 2011) and saving an impressive 20% of that would need almost 200 years to save £1 million (excluding taxes and investment gains). It's pretty clear, then, that a would-be millionaire has to think outside the boundaries of "median" experience.

Start a business

There are certainly people who can become millionaires by working for other people, but this is not an especially good route to choose. The trouble with trying to become a millionaire by working for other people is that there are always other people siphoning off the value of whatever you produce. Say you're a hotshot salesman – although you're going to get your cut, a lot of the value you create is going to get split among a broader pool of workers, managers and the owner(s) of the business.