Becoming a Millionaire
Becoming a millionaire involves discipline, hard work, and financial education.
Based on the book entitled “The Millionaire Next Door” in which the authors conducted a study on how millionaires live, we can deduce what these millionaires undertook to achieve their “millionaire” status. And will summarize it together will all the lessons I learned on how to become a millionaire.
MILLIONAIRES ARE FRUGAL INDIVIDUALS:
Millionaires know how to pay themselves first. If you are an employee like me, the first thing you should do is to pay yourself first whenever you received your paycheck. Set aside enough savings first before you spend the rest. Use the equation INCOME minus SAVINGS equals EXPENSES.
A good way to know how much you should save is by using the universal rule called Pareto’s Principle of 80/20. In business, you must put most of your efforts on the 20% that bring in 80% of the income. In saving, 80% of your savings come from 20% of your frugal living. In other words, you should live within 80% of your income and set aside at least 20% of your salary every payday.
Where are you from? Is it a secret?
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Thanks for featuring my article here.
@Tyrone: Sure! Thanks, too for a great article. Your site is one of the first I’ve been reading and getting ideas with. I will feature more of your post here! Hope it’s ok!