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Meaningful Financial Advice from Real Millionaires

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To some, the word "millionaire" conjures up images of that guy from the board game holding bags of money, but in reality, the millionaires of America are simply determined, hard working individuals.

To some, the word "millionaire" conjures up images of that guy from the board game holding bags of money, but in reality, the millionaires of America are simply determined, hard working individuals.

Words of Advice

Many millionaires in our nation are said to have a "middle-class attitude," with the wants and needs of the average citizen. The difference lies in the choices they make with their money throughout their lives. Here's some financial advice from real millionaires.

Plan Ahead - Financial success doesn't just happen overnight, it comes from having a long-term plan. Set a long-term objective, and then plan out smaller goals along the way that can help achieve the objective, like cutting out those expensive lattes every morning.

Take Risks - Taking risks, like starting up a business, provides financial opportunities that desk jobs simply cannot. When compared to employees, self-employed individuals are almost five times as likely to become millionaires.

Live Modestly - If a person had to pay the expenses of owning a mansion and exotic cars, they wouldn't be rich for very long. Many immigrants in America became millionaires by living modestly and thinking of the future before making unnecessary purchases. Save, Save, Save - Putting away between 15-20% of annual earnings builds an enormous nest egg.

Invest with Care - Real millionaires do not use the stock market as a means for instant success, but instead carefully research the long-term trends of different stocks and invest in mutual funds with the help of an investment professional.

Become Tax Savvy - The rich understand how various forms of income are taxed differently. For example, income from wages is taxed at much higher rate when compared to income from stock dividends. They also understand the many tax deductions that result from owning a business.

Three Easy Guidelines

There are three things people can do every day to help them increase their wealth:

Set Goals - Start with the big picture and work backwards, identifying different goals that will get you to where you want to be. This could include sticking to a weekly budget or creating a timeline for paying off debts.

Spend with Caution - Buy the things you need, but before you spend a ton of money on something, consider the benefits of investing that money instead. Also, avoid relying on credit cards for making larger purchases. Credit cards make it too easy to buy things you cannot afford and paying those interest rates is like throwing your money down a well.

Save Regularly - "A penny saved is a penny earned." Corny or not, it's true. Make saving a part of your daily life. It can start with collecting pocket change each evening, but work towards taking a portion of each week's pay to put into savings. Best wishes on your journey to financial happiness!


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