THE AUTOMATIC MILLIONAIRE SYSTEM WILL TRANSFORM YOU

THE MILLIONAIRE SYSTEM (From The Automatic Millionaire.) 

(You can call your library to get on the list to reserve this book!)

Are you getting ahead or just running harder just to stay even? You need to find  Mentors: Successful people you can pattern your life after. How to live like a Millionaire  If you don't have a mentor then read this and you will.

The Butterfly Effect- borrowed from the idea of physics chaos, where the flapping wings of a butterfly in one part of the world can affect the weather patterns in another part of the world.

You can accomplish amazing things with your life--even become a millionaire--using a carefully designed system of focused actions delivered in small increments or " flutter". By making small changes in your attitude toward wealth you can become much more successful.

 

 1.) “The Latte Factor.” All people have some spending habits that are draining their income and their savings. For instance, getting an expensive cup of coffee every morning and going out for lunch every day can quickly consume your income. $5 a day for lunch X30 days =$150 you could invest. By realizing what your particular spending habits are and correcting them, you are able to save a great deal of money. His discussion of the "The Latte Factor" shows that, to find money to start a retirement plan, a person with a modest income needs to make an up-front commitment to stop accruing debt and to reduce spending on such "wasteful" items as lattes and cigarettes. Mathematically, it's possible to become a millionaire by saving a mere $1 a day every day and letting the interest compound. If you can find investments that will return 10%, you'll be a millionaire in 56 years. At lower rates of return you'll still become a millionaire, but you'll have to wait longer. Don't want to wait? Find something that pays better or put in more than a buck a day.

2.)  “Pay Yourself First.” The money that people earn every day goes to a lot of different people, but take some of your hard-earned pay and keep it for yourself. Open a retirement account through work, a bank, or a brokerage firm and allot the first ten percent of your gross pay from each paycheck into the account.

3.) save for a rainy day. Put away at least three months’ worth of living expenses as an emergency fund that should not be touched for any reason except for a real emergency. By doing this, you never have to worry about how you will live if you lose your job or about finding some extra cash for an emergency.

4)  buy a home. Real estate has shown itself to be one of the best investments over time. By owning a home, you increase your assets. Pay down your mortgage early to save thousands of dollars.

5.) and most critical is to get out  of debt and stay that way. Credit card debt is ruining many Americans today. Pay down your credit card debt—if you have any—as quickly as possible and staying away from credit card debt from then on.

finally  giving back some part of what you earn through tithing. Bach believes that part of living and finishing rich is giving back a portion of what you have earned. He suggests finding a worthy cause that you believe in and giving some of your income to that cause.

 

 It is not how much you earn but how much you spend that hurts you. How much you earn has almost no bearing on whether or  not you can build wealth. It is not how much you earn, but how much you save that will make you rich.

To end up:


 

Nearly 1/2 of all Americans have less than $25,000 in the bank and 60 million (1 in 5) have nothing in the bank. The typical boomer has $1,000 worth of financial assets.


If you have $2,000 in credit card debt and making the minimum monthly payment it will take 18 years and a total of more than $4,600 to pay off the balance.


If you want to buy a new car for $18,000 then you will have to actually make $23,400 to pay for it since the government will  take their share of 30% in taxes to leave you the $18,000. Don't forget if you then borrow the money at 7% it will cost you another $1260.00. That $18,000 car (that will start depreciating as soon as you drive it off the lot) will require you to make $24,660 to own it!  (Don't forget your insurance is going to go up and the tag is very high.) This is why millionaires let someone else subsidize their cars....they buy them used so the first owner takes the big hit as it depreciates. Buying a Car 


A way to make some extra money ebay Careers


10 Golden Rules to hiring a financial planner and  how to adjust a high-consumption lifestyle or how to go about eliminating debt. http://www.finishrich.com/


 

If you are putting your money into CDs be sure you look outside your state. Countrywide and Capital One, both FDIC insured, usually have much higher rates of return. Their 3 year rate has been as high as many banks 5 year rate. Compare at  bankrate.com


Always take your grocery ads to Wal-Mart where they will price match. It saves you running from store to store to get the best prices.


All that junk around your house can be turned into a way to possibly get back money on your taxes when you take it to Goodwill and get a receipt! (It is better than wasting time preparing for a garage sale and a whole day or two sitting in the hot sun, to get 25c on items you spent much more for. When you take it to Goodwill you will get to write off a much better amount.)


Once you realize that most people are keeping up appearances and putting on a show, their approval becomes less important.