Wednesday, January 18, 2006

Top 10 ways to become the Millionare Next Door

Top 10 ways to become the Millionare Next Door

Everyone wants to get rich and become the Millionare Next Door. Unfortunately most of us will not be on the Forbes list of Billionaires under 40. However, we would all like to have the Millionare Mind or be the Millionare Next Door. Some keys tips to becoming the Millionare Next Door are:

  1. Live well below your means, try paying cash for purchases versus running up debt.  In order to not run up debt you will need some ideas on how to save money and reduce your expense.
  2. Own your own home, now is a really great time to own your own home.  The fastest way to build wealth with your home it to get a shorter mortgage.  Make sure you consider the advantages of 15 year vs 30 year mortgage.
  3. Most millionares are married
  4. Unfortunately, working for 30 to 40 years is key.  This is sort of the get rich slowly mentality but it works, however there are ways to become a millionare as an employee.  Make sure you invest in your companies 401K.  You can take advantage of matching funds and the tax benefits.
  5. Own your own business or be self employed.
  6. Be conservative with money have a family budget, save and invest your money
  7. Get a college education, advance degrees are better, Eighteen percent have master's degrees, 8 percent law degrees, 6 percent medical degrees, and 6 percent Ph.D.s.  It is a know fact the if you have a degree you are more likely to have a job.  98% of the people with college degree are employed right now.  It is worth taking the time and figuring out a way to pay for college to get this advantage in your life.
  8. Put in your time most millionares work 45 to 50 hours per week.
  9. Invest wisely and divesify your portfolio, stock picking is tough, you have to stay on top of it.    Consider hiring a financial planner to help you with your investments.  It is well worth it is you get the right person.
  10. Non-formal eduction is also important, read a lot, self help, investment magazines, Wall Street Journal

So for most of us, and based on the Top 10 list will need some time become a millionare. However, if you are looking to find out how to earn extra income. Or you are curious how to develop a passive income as describe in the book the 4 hour Work Week, you need to start now. Did you ever wonder about all those internet millionares? The guys that started Youtube or Facebook and sold it for a gazillion dollars? Most of us will never be those guys. I know that I am not smart enough. However, I would love to earn extra income on the side and eventually build it up to something I might be able to do full time. I frankly would love to be able to work at home. If you are curious and looking for a way to jump start your passive income. Click Here!

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Note: Millionare is intentionally misspelled to help you find the article. The correct spelling of millionare is millionaire.

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