Expert <bltz60al@gmail.com> wrote in news:acc0a22a-eea4-4f37-a838-e1625b852a63@googlegroups.com:
On Tuesday, October 22, 2019 at 7:32:48 PM UTC-7, a425couple wrote:And that 3-step formula for getting rich requires you have a big chunk of money to start with - either of your own or of someone supporting you.
from
https://www.businessinsider.com/steps-for-building-wealth-formula-mill
ionaire-interviews
A man who interviewed over 150 millionaires says getting rich boils
down to perfecting a 3-step formula
Tanza Loudenback Oct 21, 2019, 12:47 PM
building wealth millionaire
Millionaires overwhelmingly favor simple investments, like index
funds.
Adopting the habits and strategies of rich people can guide you
toward wealth, as long as you're willing to put in the work.
John, who runs the personal-finance blog ESI Money and doesn't share
his last name online, has spent the past few years interviewing
millionaires. John was a business executive for 28 years before he
retired at age 52 with a $3 million net worth.
John says there are three elements to getting rich: earning, saving,
and investing. Now that he's interviewed 150 millionaires, he's
figured out exactly what it takes to be successful at each step.
1. Increase your earning potential
Looking back, most millionaires realized that earning was more
important than they originally thought, John found.
"It takes time and effort to make the big bucks, so the sooner you
get started, the sooner you'll reap the benefits," John wrote. "This
means considering both growing your career as well as developing a
side hustle. Over time they will both increase and be what fuels
strong net worth growth."
Many of the millionaires "started with very minimal paying jobs" and
worked hard to develop the skills needed to increase their salary,
John said. They also diversified their income, most commonly with
investment dividends, side hustles, and income-producing real estate.
2. Control your spending
One of the most surprising patterns to John was that the vast
majority of millionaires don't live by a budget.
But that doesn't mean they never did.
"Developing a spending self control is vital to becoming wealthy and
a budget is the best tool for doing so," John wrote. "Even if it's
just for the first few years of your financial journey, develop and
live on a budget at least until you know you can manage your spending
impulses."
Despite not determining their spending for the month or year, many of
the millionaires still track where their money goes, John said. The
point is to save and invest as much as possible, and you achieve that
by keeping expenses and discretionary spending low.
Once you're spending less than you earn, saving automatically, and
investing prudently, a self-control mechanism takes over and it's no
longer necessary to budget every dollar.
3. Invest now
The math proves that time is on your side in investing.
"Sock away as much money as you can as early and as often as you can
to get compounding working for you," John wrote.
He found that, like himself, millionaires overwhelmingly favor simple
investments, like index funds. They made their fair share of mistakes
early on, but most realized quickly that they aren't killer
stock-pickers.
Index funds are a type of passive investment that exposes investors
to a broad selection of stocks in order to diversify and ultimately
minimize risk. They're low-cost and regularly outperform actively
managed funds. One of the easiest ways to invest in index funds is
through your retirement accounts, such as a 401(k) or IRA.
"Over time you can keep at it or look to expanding into real estate
depending on your goals and interests," John wrote. "After that, it's
simply time. Give it long enough and one day you wake up wealthy."
More savings and retirement coverage:
How to retire early
How to save more money
Are CDs a good investment?
When to save money in high-yield savings
NOW WATCH:
You forgot the most common route, inherit.
On Tuesday, October 22, 2019 at 7:32:48 PM UTC-7, a425couple wrote:
from
https://www.businessinsider.com/steps-for-building-wealth-formula-millionaire-interviews
A man who interviewed over 150 millionaires says getting rich boils down
to perfecting a 3-step formula
Tanza Loudenback Oct 21, 2019, 12:47 PM
building wealth millionaire
Millionaires overwhelmingly favor simple investments, like index funds.
Adopting the habits and strategies of rich people can guide you toward
wealth, as long as you're willing to put in the work.
John, who runs the personal-finance blog ESI Money and doesn't share his
last name online, has spent the past few years interviewing
millionaires. John was a business executive for 28 years before he
retired at age 52 with a $3 million net worth.
John says there are three elements to getting rich: earning, saving, and
investing. Now that he's interviewed 150 millionaires, he's figured out
exactly what it takes to be successful at each step.
1. Increase your earning potential
Looking back, most millionaires realized that earning was more important
than they originally thought, John found.
"It takes time and effort to make the big bucks, so the sooner you get
started, the sooner you'll reap the benefits," John wrote. "This means
considering both growing your career as well as developing a side
hustle. Over time they will both increase and be what fuels strong net
worth growth."
Many of the millionaires "started with very minimal paying jobs" and
worked hard to develop the skills needed to increase their salary, John
said. They also diversified their income, most commonly with investment
dividends, side hustles, and income-producing real estate.
2. Control your spending
One of the most surprising patterns to John was that the vast majority
of millionaires don't live by a budget.
But that doesn't mean they never did.
"Developing a spending self control is vital to becoming wealthy and a
budget is the best tool for doing so," John wrote. "Even if it's just
for the first few years of your financial journey, develop and live on a
budget at least until you know you can manage your spending impulses."
Despite not determining their spending for the month or year, many of
the millionaires still track where their money goes, John said. The
point is to save and invest as much as possible, and you achieve that by
keeping expenses and discretionary spending low.
Once you're spending less than you earn, saving automatically, and
investing prudently, a self-control mechanism takes over and it's no
longer necessary to budget every dollar.
3. Invest now
The math proves that time is on your side in investing.
"Sock away as much money as you can as early and as often as you can to
get compounding working for you," John wrote.
He found that, like himself, millionaires overwhelmingly favor simple
investments, like index funds. They made their fair share of mistakes
early on, but most realized quickly that they aren't killer stock-pickers. >>
Index funds are a type of passive investment that exposes investors to a
broad selection of stocks in order to diversify and ultimately minimize
risk. They're low-cost and regularly outperform actively managed funds.
One of the easiest ways to invest in index funds is through your
retirement accounts, such as a 401(k) or IRA.
"Over time you can keep at it or look to expanding into real estate
depending on your goals and interests," John wrote. "After that, it's
simply time. Give it long enough and one day you wake up wealthy."
More savings and retirement coverage:
How to retire early
How to save more money
Are CDs a good investment?
When to save money in high-yield savings
NOW WATCH:
You forgot the most common route, inherit.
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