Commercial only led to believe that you'll be rich like the 'Fantasy Island' by placing tiny ads in the classifieds.
Unfortunately, all you get are probably dark circles from lack of sleep. If you end up going to seminary or buying tapes touting, you are probably more into debt.
The truth is that, unless you are lucky enough to receive a large inheritance, you must follow your own path to prosperity.
However, although the mega rich style Bill Gates might be difficult to achieve, becoming a millionaire is definitely within reach of those who start young and develop the right habits.
And anyone, at any age, can develop conditions to increase wealth and reduce debt.
"You can have money or material things, but rarely can have it when you're young," says Jason Flurry, financial advisor Planmark Capital Management LLC. "Part of our culture is 'pretending until you become one of them.' Debts repress people. There are people who buy debt and then never end up paying. Spend less than you earn, follow a modest lifestyle and do not give the high life with each increase. "
"Some people have spent their prosperity for the next 10 years and have done so with credit."
Flurry does not suggest decorating your house with plastic furniture for the garden, give up cable TV or have dinner 'macaroni and cheese' every night. But you really have to buy an expensive car you should spread the payments five or more years? Have we now have a flat screen 50 "HD?
Many people who choose to wealth rather than 'material things' would not consider spending on 'the latest model and the best' because they know they can use their money better. Buy a "debt" probably cause them stress because they would rather buy a good, something that will be recovered over time and they will return on their investment.
Flurry says he finds it difficult to make some of their biggest customers to spend money.
"They saved all their lives and for them is absurd to think of spending $ 5,000 or $ 10,000 for vacation. No matter whether they have $ 3 million. They really are the last generation of the Depression and have recorded in your memory you have to save. "
How to be rich in 7 Steps
In summary, we suggest seven steps for you to be rich. Remember, wealth is relative, does not necessarily mean "millionaire". The goal of many people is to achieve financial independence, says Stewart Welch of Welch Group.
"It's when the cash flow from your investments is equal to or greater than the income from your job. Look at the following statistics: 95% of the population never reached financial independence. For 65% of retirees, Social Security is the largest source of income. "
The No. 1 reason why people fail to achieve financial independence, he says, because they lack a written financial plan. So this will be our # 1 rule to become rich.
1. Make a financial plan:
Say you want to be rich is not enough. You have to create a workable plan and put it in writing. The plan you have written will force you to do something, "said Welch. "Work out what you need to earn and how much to invest. The plan is not only the goal, is all: dreams, goals, options. Options include scenario planning, all the ways you can reach the goal .
2. Save, save, save:
The end result of your financial plan should be a systematic investment. Get into the habit of saving money. Create an emergency fund in an account so you do not have to touch the rest of your savings and investments when presented an unexpected considerable expense. Make it a goal to save at least half of each raise.
3. Live below your means:
Do not be a walking billboard for clothing, shoes, sunglasses and expensive designer jewelry. Do not let your house payments or self destroy your budget.
4. Cancel some of your credit cards.
Some people say that you can eat or wear it, you should not charge your credit card. It's good advice, but apply it to more situations. Try not to put anything on your cards you can not cancel within two to three months. You only need one or two credit cards. If you have a handful and cut up your cards. Remember that debt holds you.
"Credit cards reduce the cash flow to others, including investment," says Welch. If you only allow you to borrow you took 75 percent of the value of your home, you're better.
5. Make your money work for you:
It takes money to make money, but it does not mean you need to spend a lot. Open an account with a mutual fund company that will not charge a fee for making the investment and have lower percentages for expenses. Create a diverse portfolio. You can reasonably expect to earn from 8% to 10% a year on your long term investment.
6. Open your own business.
In the 1996 book titled "The Millionaire Next Door: The Surprising Secrets of America's Wealthy," the authors state that two-thirds of millionaires are self-employed, of whom 75% are businessmen and other professionals are doctors and accountants. "The idea that most people inherit wealth is outdated. Many of them are created through business. Business creation is the No.1 factor of wealth in this country, "says Zultowski.
7. Get professional advice:
A good financial advisor can help you keep in your wallet the right investments and eliminate wrong. No need to give up control, but you have to create a good working relationship with someone who has experience in this complicated area.
"About 76% of respondents are actively involved in managing their financial affairs every day," says Zultowski.
"Participants learn finance, not quoted in the very short term. Working with advisors, but ultimately make their own decisions. "
If you can not afford to spend for a financial advisor to manage your money, always review your portfolio and make recommendations for a flat rate.
