Good evening and welcome to millionaireblog.co.uk. This secret corner of the webs primary purpose is to discuss the concepts surrounding accumulating wealth. You may think to yourself “But im in a low paid job, ill never be wealthy” or “I have a family to feed” etc etc. but ladies and gentleman you will be glad to know that anyone can accumulate wealth.
Whether you are in a high paid job paying over 50k a year or a job paying 15-20k a year it is possible for us all to become millionaires.
The concepts Im suggesting are not rocket science. In fact the concepts are simple. It just requires the individual to have will power and drive to achieve their goals.
Lets briefly touch on Millionaires.
Do you think someone who earns 100k+ a year and lives in a big house (mortgaged at 500k) and drives a brand new porsche (h.p finance) is wealthy. The answer would be No.
You must remember its our assets that make us wealthy. Cash in the bank, shares, bonds etc etc.. Wealthy people or corporations are not the people who take out loans. They are the people who provide the loans for others and take the interest growing their assets.
Its open for debate but a house could be classed as a liability owing to the fact that a mortgage is essentially a loan. With rising house prices we could say that a house is an asset but if house prices dipped and we went into negative equity we would have a liability.
Appearences can often be deceptive. Mr Jones is a regular guy working on 30k a year. He lives in a standard house 160k a year with a mortgage of 50k. He pays his mortage monthly as a repayment morgage with a fixed rate of Â£300 a month. Mr Jones drives an old volvo thats 7 years old. He bought this 4 years ago with money he had saved up so has no loans or hire payments. Mr jones doesnt use credit cards and if he does they are paid off at the end of every month. Mr jones doesnt splash out on expensive items that he doesnt require as he would rather accumulate wealth. Mr Jones has been following the millionaire concepts for the last ten years. Mr Jones could pay off his mortgage but is instead investing this money in stocks, mutual funds, bonds and buy to let properties.
Mr Jones ladies and gentleman is a millionaire.
A millionaire –
- Is aware that cars depreciate and always buys a 2nd hand car. A millionaire will drive this car until it wont run anymore and ensure the full value of the car has been gained. A Â£10,000 car over 15 years only costs Â£666 a year to run plus maintenance. Also think fuel economy with diesel rather than petrol. [AVOID LOANS AND HIRE PURCHASE and minimise travel costs]
- Is not jealous of their friends struggling to pay off their high, unrealistic mortgage payments. Instead they enjoy having the flexibility to invest 50% of their salary into several growth areas. Of course once they have made their million’s they know they can buy that house with a far lower mortgage. [LIVE BELOW YOUR MEANS TO ALLOW INVESTMENT]
- Will not buy luxury items that arent required. This money is invested for growth for a better future. [DO NOT SPEND CASH ON ITEMS THAT ARENT REQUIRED]
- Has a plan. A millionaire will stick to an investment plan. [PLAN PLAN PLAN, WRITING A PLAN ON PAPER GIVES YOU THE MOTIVATION TO MOVE FORWARD]
Right folks . We will continue in part two where we go into further detail including automated investments. Speak soon. C
[tags]Millionaire, Millionaire Blog, Investment, Making Money, Financial Freedom[/tags]