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Becoming a millionaire takes time and discipline

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Becoming a millionaire takes time and discipline and even if you inherit it or earn thorough some great accomplishment likes sports or entertainment you need to have wisdom and knowledge to keep it!!!!
I believe that this article hits many key points that you will need if you REALLY want to be a millionaire!
Take a look and feel free to add your comments

10 Steps to Becoming a Self-Made Millionaire

You have to have a plan if you want to become wealthy
Building wealth for most people is a long process that requires discipline and sacrifice. There are many people who will waste their life away, wanting things to be different. Then there are those who are willing to change themselves to change where they are going. These are the people who have what it takes to become wealthy. These are the people who have a plan.

1. They don’t live like millionaires.

What we mean is, they don’t spend the way most people you would conceive as millionaires do. Those people who spend money like it’s going out of style generally end up broke. They must file for bankruptcy and get rid of their fancy house, cars, and materials to pay their debt. Self-made millionaires know the value in not spending all their money. They know waiting for what you want and saving for what you need is the only way to get there.

2. They are cheap.

More than not, when you meet millionaires, they are penny pinchers. They will be a little more stingy with their money. And that is OK! You don’t have to help every Tom, Dick, and Harry out there! They are wise with their money. Some of them are maybe a bit like Scrooge. You don’t have to be so extreme, but don’t spend every penny you have, just because you have it.

3. They give to charity.

Charitable donations not only help the conscience, they also help when tax season comes around. Those who give sizeable donations to charitable organizations, and have receipts for it, can take those contributions off their taxes. It is a win-win-win, right?

4. They invest.

Millionaires know that money sitting is just that — money sitting. It isn’t doing anything for you. Even if you don’t invest it, but you put it into a high interest account, it is more likely to accrue money for you later on than money in your pocket. When you get a paycheck, allocate what you need for bills and living, but put 10 percent into investments or savings

5. They earn a little more.

These are the people who are not afraid to go ask their bosses for a raise. They know how to work more hours at their job just to get that paycheck a little bit higher. They know how to do whatever it takes not to have to live paycheck to paycheck, because they put in the effort.

6. Get an education.

Although you will see some who do not get an education, the majority of millionaires see the value of an education, in getting a better job and compensated more for their work. School is expensive, but so is getting to millionaire status.

7. They work side jobs.

Many millionaires work one to three jobs, and their spouses do the same thing. They work as much as they can to bring home as much as they can.
8. They marry well.

Not that they marry rich. They marry someone with the same goals and value of money as their own. Their spouses may be as frugal, or even more so. That is the measure of good millionaires. They know how to become millionaires together.

9. They are organized.

They know where every penny goes. They know what each of their assets are doing. They do their own money managing. Do you think they would let someone who may potentially mess it all up take care of their money?

10. They teach their children.
Millionaires teach their children how to work hard and be millionaires. Their children know how to save for and earn what they want.

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3 Tips to stay in the Money-Saving Mindset

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Everyone once in a while we need to know why we do what we do. This article is a short and sweet reminder help you stay focused on savings

3 Tips to stay in the Money-Saving Mindset

If saving money isn’t your strong suit, don’t worry. Changing your money habits will have its challenges, but with a little effort, you can stop making so many unnecessary purchases and start building a sizable savings. The first step is to think about your goals and priorities. Why do you want tosave money? You might be looking for the security of an emergency fund, hoping to spend less time working, or preparing to buy a new car. Recognizing what’s important to you will help you get to a place where saving money seems only natural.

1. Remember why saving is important to you

Here’s where your savings goals come in. Think about why you want to save money and take every opportunity to remind yourself. Talk about it out loud. Write it down. Even if your goal is as simple as saving for a single vacation, keep it in the back of your mind as you go shopping or seek out money-saving opportunities in your daily life. If your goal is to be a great saver in the long term, think about the financial freedom you will be gaining. It can be easy to concentrate on what you have to give up in order to save money, but if you shift your attitude to focus what you’ll get in return, it’s much easier to make the daily decisions needed to get there.

2. Hold yourself accountable

Budgets, spreadsheets, and shopping lists are enough to put the average consumer to sleep, but don’t be afraid to give this strategy a try. People who are already in the habit of jotting down notes or lists will likely be very successful making strict shopping lists and sticking to them. It doesn’t take much time, and it might save you the effort of trying to remember what you actually need when you get to a store. Once you make a reasonable budget for yourself, don’t stray from it.

3. When you get a raise, don’t increase your spending

It might seem natural to start spending a little more after a promotion. Maybe you start eyeing a larger apartment or some high-end gadgets. http://www.cheatsheet.com/money-career/3-tips-to-stay-in-the-money-saving-mindset.html/?a=viewall#ixzz3jEOhua00

42 Ways to Radically Simplify Your Financial Life

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If you are looking for ways to start your 2016 off the right way here’s an article by Adam Baker with Man vs. Debt to get you started on the right track:

The heart of simplicity is in exploring, finding what works for you, and purging the rest.  With that in mind, here are 42 ideas to help push you down the rabbit hole:

  1. Focus on one financial goal at a time. The average person seems to always be juggling paying down debt, building an emergency fund, saving for retirement, coming up with a down-payment, college, weddings, kids…  ugh.  Instead, try passionate focusing your intensity on one goal at a time.  If you’re attacking debt, attack debt.  If you’re saving for a down-payment, start stockpiling.  Simplify, focus, and prioritize.  Build on your momentum.  Once you knock out one, plow through the next.
  2. Consolidate accounts. I seriously doubt you need 2 savings, 4 checking, and 3 separate retirement accounts.  It’s no wonder people get lost tracking their finances.  Shoot for 1 of each.
  3. Combine finances if married. This battle has already been publicly fought here and on other blogs.  My preference is clear.  Invest the time upfront to create 1 account of each type, 1 set of goals, and 1 financial life.
  4. Cancel your credit cards. Yeah, I said cancel.  While you’re at it burn the evidence (in the most environmentally friendly way, of course).  Lower risk of identity theft, less financial accounts, less miscellaneous and erroneous fees, and cleaner reviews of credit reports.
  5. Freeze your credit reports. For those committed to a life without credit (or those who won’t need it for awhile), freezing your credit report can save a lot of headaches.  A freeze limits access to your report, making it much more difficult for anyone to compromise your identity.  Most states charge a fee, although a couple offer it for free.  You can even do it all online.  It doesn’t get any simpler than that.
  6. Budget using pen & paper. I’ve recently adopted this practice and I absolutely love it.  My new theory is if you can’t generate a simple budget with pen & paper…  your budget is too complex.  This forces you to use broad categories and encourages you to lower your spending/monthly commitments.  Also, physically writing out your budget is a much better demonstration of comprehension than staring at fancy computer software.
  7. Budget using last month’s income. This popular budgeting hack is effective for three reasons.  First, it implies that you’re a month ahead of you bills, meaning you have a least a small cushion.  Secondly, it solves the problem of budgeting for irregular income.  Third, because it can’t change, it lends itself easily to zero-sum budgeting or the process of allocating each dollar to a specific category at the beginning of the month.
  8. Use cash.  Try adopting cash for your discretionary spending.  The key to cash is to make the process as intimate as possible.  Using physical envelopes that represent your spending categories is a fantastic way to make your budget tangible.  It doesn’t get more simple than looking down to find $4 left in the “Entertainment” envelope.  Don’t mistake convenience for simplicity.  They aren’t always the same thing.
  9. Batch bill paying. The goal of this idea is to pay all the scheduled bills for the month on the same day.  I do this with our student loans.  It can be hard to do with some bills as due dates can be spread out.  However, the far majority of vendors are more than happy to take your payment a couple weeks early.  This is especially easy if you are budgeting based on last month’s income.
  10. Leverage calenders. If batching your bills doesn’t work well for you, set up a bill calender for a simple visualization of the month.  Most calenders can send auto-reminders to ensure you don’t miss a regular payment.
  11. Track your spending at the point-of-sale.  Carry a notebook.  Tap it into your iPhone.  Use whatever strategy you want, but do it at the point-of-sale.  There’s a big difference between auto-syncing your spending into budgeting software and physically logging your spending.  Tracking in this way enforces your positive spending patterns and causes you to think twice about your impulses.  With limited practice this habit becomes second nature.
  12. Experiment with spending hacks. Implement “No Spend” days. Try fasting from different common purchases (no television for a month, no daily Starbucks for a week, etc…).   Give yourself time to adjust and test whether those reoccurring expenses are really worth it.  Add any of your “must-have-it-now” purchases to a 30-day list.  Only purchase those that are still “must-have” after a month.
  13. Stop thinking monthly.  When purchasing big ticket items, stop thinking about the monthly payment.  Think, negotiate, and buy based on total or lifetime cost.  This goes for contracts as well.  What’s the total price?  Once again this will lead to less impulse spending, less useless clutter, and, of course, less monthly payments.
  14. Automate the flow. Take advantage of online bill paying services. Direct deposit your paycheck.  Ensure your accounts are properly linked.  That being said, I’m not a huge fan of automatically paying your bills.  Streamline it so you can pay with the click of a button, but I choose to maintain control of authorizing the payments each month.  This allows me to scrutinize bills and notice erroneous fees or changes in service.  There is such a thing as too much automation.
  15. Go paperless. Authorize vendors to issue online billing as much as possible.  Scan and keep digital copies of any important paperwork.  Reduce your junk mail.  Good for the environment, even better for your sanity.
  16. Insure adequately. Invest the time upfront to understand your insurance coverage.  Know at least the very basics of your policy and how it works.  Stop making excuses and buy health insurance.  Life, home, auto, long-term disability, make sure you cover your bases.  When the time comes to use it, you’ll life with my 1000 times more simple.  By the way, this include having a basic will.
  17. Package services. Speaking of insurance, package all your insurance needs with one company.  This means less contacts, less confusion, and usually will save you money anyway.  Look for ways to do this with other services like communication.  At the same time, don’t ever get an add-on you don’t explicitly need.  Package your needs before you start shopping.
  18. Pay for regular services in advance. For any service you pay monthly, check to see if you are able to pay in advance.  Often times you can pay for 3, 6, or 12 months.  This not only is simpler in terms of paying less often, but almost always results in a discount.
  19. Cancel all subscriptions. Subscriptions, especially the small ones, can really sneak up on you.  Rather than pick and choose, cancel any of them you can and start from scratch.  Be ruthless.  Don’t re-subscribe easily, even if it’s free.
  20. Quit signing contracts. Cell phone contracts, gym memberships, and even long term leases are common examples.  Stop signing this crap.  Negotiate, pay in advance, or explore alternatives.  I’ve adapted this principle with great success in the last year.  Only sign contracts on the most essential needs in your life.  Almost everything else has several other option.
  21. Fund an emergency fund. This is most important for peace of mind.  If you don’t have one of these, you have no idea what sort of stress release it is to have this in your back pocket.  It’s changed our complete mental approach to our finances.  We treat our fund as another form of insurance.  We don’t fret about interest rate or optimization.  It’s just there to help spread the risk of something unexpected.
  22. Become 100% debt-free. Including the mortgage.  It is so liberating.  I know how much more simple my financial life is now without my consumer debt.
  23. Consolidate high-interest debt. Be careful.  Normally, I vehemently oppose consolidation.  9 times out of 10, people use this as an excuse to transfer responsibility.  They consolidate and then fall right back into the same trap.  However Matt Jabs recently consolidated his high interest debt using Lending Club.  He’s proven there are exceptions to the rule as he’s now more passionate than ever.  In his case, he’s simplified it into one source and is saving a lot of interest in the process.
  24. Create artificial scarcity. This is more commonly referred to as “pay yourself first.”  The theory is to automatically transfer a portion of your income to savings and budget on the rest.  Basically, it is prioritizing your goals.  The theory is great, as long as you actually spend less than your earn.  There’s no reason to pay yourself first, if you’re going to overspend and continue to plunge into debt.  When done correctly, though, this ensures you’re accomplishing even your “boring” financial goals.
  25. Simplify your investments. My theory when it comes to investing is that if you can’t provide a quick summary of what your investing in and how it works…  you shouldn’t be investing in it.  You don’t have to become a financial planner to know the basics of what your money is doing.  And, yes, you can simplify, while still maintaining diversification.  The two aren’t mutually exclusive.
  26. Buy and hold. Stop trying to time the markets.  There are very few exceptions and you aren’t one of them.  Neither is your cousin’s new inside “opportunity.”  This game is an emotional roller coaster and the stress it causes is the exact opposite of everything that is simple.
  27. Do it yourself. Simplicity isn’t just doing whatever takes less time.  There is simple virtue found in embracing sustainability, creating your own products from scratch, cooking at home, and learning the skills to repair instead of replace.  At the same time, don’t be afraid to…
  28. Outsource tasks.  The truth is learning the skills it takes to be self-sufficient takes time and practice.  Some people are better off focusing their attention on tasks that offer more value.  More importantly, there are some things best left to trained professionals.  Outsourcing makes sense when it will increase the quality, while saving time, stress, and money.
  29. Create a list of everything you own. I’ll be honest.  Creating the list, itself, isn’t simple.  Actually, it’s pretty hard.  But the process of creating this list is sure to stimulate a quest for simplicity.  It’ll be a wake-up call to consume less, spend less, and own less.
  30. Sell half of the list within the next two weeks. Here’s where things get interesting.  Making a commitment like this will spark a wave a simplicity in multiple areas of your life.  Not only will you generate some cash, but you’ll be saving maintenance, upkeep, and potentially storage costs for all your unused junk.  This also increases productivity as it spills into other areas of your life.
  31. Get rid of 2 items for every 1 you buy. Once you’ve simplified your consumption habits, it’s important to take measures to maintain them.  Adopting this policy will help control your spending, encourage you to borrow before you buy, and shift your focus from possessions onto experiences.
  32. Embrace alternative transportation. Ditch the cars.  Research public transportation.  Try the buses, trains, or subways.  Move closer to work, so you can bike.  Walk if at all possible.  In addition to the potential health benefits, you get to bypass car payments, repairs, registration, plates, gas, insurance, etc…
  33. Become a one-car family. Alright so you have to be able to drive.  Whatever.  More and more families these days are making the jump to a one car.  Whatever you do, you’re going to be hard pressed to explain how having 3, 4, or more vehicles is necessary (not all that uncommon).  Go ahead and try, I’m all ears.
  34. Buy a smaller car. Less upkeep and usually more efficient anyway.  Don’t read this incorrectly, though.  This doesn’t say “buy a new car.”  You can find dependable, late model, compact cars.  In fact, they are all over the freakin’ place.  You might have to look at more than just one website, though.
  35. Rent. Avoid the number one killer of financial simplicity… a house.  Two years ago, I would have been shot on sight for this suggestion.  These days, examples of buying too soon, too much, or too many are all around us.  I’m a fan of home ownership, but you’ve got to be 100% ready for it.  It’s adds an enormous amount of complexity to your financial life.
  36. Consider a condo. A condo could be an option if you’re just dying from house fever, but are looking to stay as simple as possible.  Obviously, buying a condo is just as dangerous (if not more so) than buying a house.  It still requires 100% commitment and offers a different set of challenges.  However, it’s often easier to budget for “association fees” than it is to account for all the ups and down of maintaining a single-family home.
  37. Buy less house. Finally, if a house is a must, consider buying less.  One of the biggest problems with leveraging credit to purchase a home is the temptation to buy so much more than we need.  Remember, bigger home means higher maintenance, insurance, and mortgage.  Don’t forget you’ll need more crap to fill it up.
  38. Simplify your income sources. Multiple streams of income sound great, but pursuing too many options at one time can stifle them all.  I suggest having one primary and one secondary source at any one time.  If you’re working a full-time job, trying to buy and sell on e-bay, launching your blog, and delivering pizzas on the weekend…  stop.  Choose one of these side pursuits and focus your energy.  You’ll simplify your life and most likely have more success anyway.
  39. Discover what you do well… and do it more. If you’re an employee, search for whatever delivers the most value for your employer.  Once you find out, replicate it as much as possible.  Playing to your strengths will fast track your progress, as well as your satisfaction.  As an entrepreneur, you’re goal is to find out what unique value you provide that your competitors don’t.  Whatever extra value you offer, focus on that.  Stop trying to be everything to everyone and just be something to someone.
  40. Learn to negotiate. Many of the tips above will be much easier to implement when you become comfortable with a certain level of negotiating.  We all negotiate in one form or another.  It pays to learn some basic strategies to help you understand and deal with other people’s wants.
  41. Filter your financial advice. Experiment with different forms of inspiration.  Find what sources click with you and which don’t.  Hone in on those that offer value and throw away the sources that don’t speak to a part of you.  Take the best parts of all the guru-system out there and craft your own.  Once you find a system that works, cut down the noise and focus on it.
  42. Simplify other areas of your life. Eat Less. Passionately pursue only one hobby at a time.  Remove clutter work environment or office.  Simplicity is viral.  Come drink the kool-aid.

http://manvsdebt.com/42-ways-to-radically-simplify-your-financial-life/

https://melissawyatt.wordpress.com/page/2/

The best way to start saving

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People think that there is some magic bullet to start saving but I’m here to let you know that there is no magic bullet when it comes to saving.  Saving money is not easy, but it is essential to achieving financial well-being and securing your future. Honestly it’s about setting realistic goals, prioritizing how you’ll manage your money and sticking with it. Below are some ideas to get you started with saving without feeling pressured.  It’s important to understand the difference between Gross Income vs. Net Income, creating goals: short and long term goals, creating a simple budget, saving (ER fund, 401K, IRA, etc), paying off debt, and enjoying life.

 1. Gross Income vs. Net Income:  People really need to understand the difference between Gross Income vs. Net Income before   they start creating a budget, saving and paying off debt. Gross income is your salary, the total dollar amount your employer agrees to pay you over a given time period. Net income is what you take home: the amount you earn after your employer makes deductions for taxes, benefits, etc.  People make a huge mistake of budgeting from their gross income when they should be budgeting off of the net income.

2.  Create Saving Goals:This is important to understand why and what you are saving for and how much you will need to achieve your goals.  Creating short and long-term goals will get you pumped and motivated about saving.  Short-term goals (1-5 years) may be: family vacation, buying a new car, buying a video game system, paying off small debt amounts.  Long-term goals (5 years-longer) are saving for retirement, buying a house, having a baby, paying off large debt amounts, becoming financially independent.

Your circumstances do not matter. It is important to realize  your goals and start saving for those goals.  Once your goals are identified you can begin making your dreams a reality. When your goals are clearly defined on paper you are more likely to make those goals come true.  Remember to start small and build up from there.  With goals outlined and attainable it will make it easier than you thought to save and achieve those goals.

3.  Simple Budget: It is crucial to create a simple budget to track your income and expenses.  My budget consist of no more than two columns in an excel spreadsheet:

                                            a)      Income

                                            b)      Expenses

Your budget may change throughout the year due to circumstances outside of your control.. I really enjoyed the following website about simple budgets:http://frugalandthriving.com.au/2009/creating_a_simple_budget/.

4.  Make saving automatic and effortless:  You should start out by saving a minimum of 5% of your income and make it automatic; the more you can save the better.  My savings are automatically taken from my paycheck so I don’t have to think about it.  Paying myself before I pay anyone else is an important concept to understand. The benefit of making your savings automatic is that you don’t see it; therefore you don’t miss it.  I have been using IngDirect to do this since 2002. Remember it’s not how much you save. It can be $5, $10 or $15 every time you get paid. It’s about making it automatic and effortless so it becomes a habit.

  1. Emergency fund: This is where you should first start. I recommend saving enough money to cover your basic living expenses for three to six months. The money in your emergency fund should be kept in an easily accessible savings or money market account so it is easily accessible if an emergency was to occur.  It is important to only use the money set aside in your emergency fund in the event of an emergency, such as your car breaking down, receiving unexpected medical bills, losing your job etc.
  2. 40lK or 403b Plan: If your employer offers a retirement savings plan, such as a 401(k) or 403b plan, sign up and contribute all you can. Your taxes will be lower, your company may kick in more, and automatic deductions make it easy. Over time, compound interest and tax deferrals make a big difference in the amount you will accumulate. Find out about your plan. For example, how much would you need to contribute to get the full employer contribution and how long would you need to stay in the plan to get that money.
  3. Roth/Traditional IRA: You can put up to $5,000 a year into an Individual Retirement Account (IRA) and you are allowed to contribute more if you are 50 or older. IRAs provide tax advantages. When you open an IRA there are two options:  a traditional IRA or a Roth IRA (you should talk to your financial advisor or research which  one is best for you based on your income). The tax treatment of your contributions and withdrawals will depend on the IRA you select. IRAs can provide an easy way to save, you can set it up so that it can be  automatically deducted from your checking/savings account and deposited into your IRA.
  4. Investing: If you are thinking about investing I believe you need to think about  how to buy rather than what to buy. You should understand that investing is risky and you can’t eliminate that risk but you can become an educated investor who makes informed decisions. Being educated about the market allows you a margin of safety and a cushion in case events go against you. Once you start thinking about investing in stocks, bond mutual funds, your first steps should be to talk to a financial advisor. You need to understand what type of investor you are and what risk you are willing to take.

5.  Paying off Debt:  Paying off debt is definitely going to mean making sacrifices and going without sometimes. It’s the sacrifice you make to live debt free. As a debt-free individual I can’t tell you how much pleasure I get from having no consumer credit card debt or student loan debt. It creates so much happiness and freedoms that you don’t get to experience with having credit card debt.  It is important to pay more than the minimum payment each month. Paying the minimum of the outstanding balance only prolongs the torture of paying the debt off.  The longer you keep your credit card debt the more you become best friends with the banks that you owe and of course the more you will owe them. The system that I used to eliminate my debt was simple I used the snowball elimination:

  1.   I listed my debts from lowest balance to highest balance and I created a timeline of when I wanted to have the debt paid off;
  2. I called my credit card companies on a monthly basis to have them lower my interest rate (most of my cards had an interest rate of 6.99% or lower);
  3.  I designate a certain amount of money to pay toward debts each month;
  4.  I paid the minimum payment on all debts except for the one with the lowest balance;
  5.  I threw every other penny I possibly could at the debt with the lowest balance;
  6. When I eliminated that debt, I did not alter the monthly amount used to pay debts, but what I did was threw all I could at the debt with the next-lowest balance;
  7. This method allowed me to become DEBT-FREE.

*While trying to become debt-free remember to try and live as frugal as possible AND to increase your income (yard sales, selling items on craigslist, get a weekend or second job, babysit, etc), if possible.  The combination of living frugal and increasing your income will make it easier to pay off your debt quicker. Also do not use your credit cards while paying them off (don’t close your accounts just don’t use them).

6.  Living Life: It is important to remember to live your life while putting all of these steps into place.  It is a lot to think about, but you have to make sacrifices in order to become independent and wealthy. You also do not need to sacrifice so much that you are taking the happiness out of your life.  The point of all this to make your life easier now and in the future– so just remember to make sure to enjoy putting these steps into place so you can enjoy life in the future.