Photo by Vladimir Solomyani on Unsplash
Last week we listed the first 6 (of 12) rules to become a millionaire. See that post HERE. It’s difficult to be who you were meant to be when you’re worried about making ends meet. It’s also very difficult to be generous and look after others when the money runs out before the month runs out. So here goes the second 6 (of 12) rules to become a millionaire.
7. Take the free money! Take advantage of any matches from your employers on any of your retirement accounts. Be sure to contribute at least the percent they match as your very first investment.
8. Give generously and radically. This is almost impossible to do if you’re in debt or just barely making ends meet. You reap what you sow. Sow generosity, then reap abundance.
9. Start as early as you can. Which is now. Seriously, today. Start saving today. If you wait even a year, it can cost you tens of thousands of dollars (or more!) on the back end. If you’re wondering exactly what to invest and how check out this book as a resource.
10. Have a long-term view. Make good decisions and let time help you. Don’t let short-term events or news rattle you or cause you to make impulsive decisions. Slow and steady wins the race.
- Take financial advisor Bryan Rex’s advice: “When you are flying from Boston to Los Angeles, does the pilot hop on the speaker telling you of the storm happening in Kansas? Nope. Or of the snowstorm in Chicago? Do you get upset because you did not pack a coat? Nope, because you are not going to Chicago, that news is not relevant to your long-term plan. Today’s 24-hour news cycle and main-lined social media intake is like inviting every passenger into the cockpit on a plane. You will likely hear a lot of alarming news that is not really that alarming for those thinking in the long term…”
11. Look for ways to increase your income. Diversification is not just for your investments. Look for ways to earn extra money—freelance, work on weekends, use the skills you have, sell stuff around your house, etc. While I was in college, I gave piano lessons to 2 dear friends Norm and Andrew, a father/son duo. It was fun and gave me some needed extra income. Sometimes they even fed me before or after the lessons!
12. Treat every paycheck the same. The same percentages each month.
–10% Give it away.
–10% Pay down any debt that you have.
–15% Invest this. (Find exactly where to invest in the new Amazon #1 bestseller ADULTING 101)
–65% Live on this.
Even business magnate Warren Buffett makes a mistake now and then. You can rally back. Except if you invest all your money in some weird new technology. Or a “startup” fund.” Or your friend’s “exclusive market-changing product.” Or in bitcoin. Don’t do that.
Now here’s some bonus advice to make things fun: Celebrate along the way. When you reach milestones and bigger accomplishments, please stop and celebrate. Make saving fun.
TIME IS ON YOUR SIDE. Start yesterday. Even with meager saving and investing. You know how much my first monthly investment in a mutual fund was? $10 per month. $10! This is
Disclaimer: I am not a financial professional. This is is advice after much reading and research, and from talking to many financial professionals.
A final word, as theologian John Wesley said, “Earn all you can, save all you can and give all you can.”
This article was adapted from the chapters on finances and money in the new Amazon #1 bestseller ADULTING 101 which just released this week. It is a life wisdom manual for those entering the “real world.” Check it out HERE.
