How to be a millionaire?

Posted on August 24, 2008. Filed under: Business | Tags: Be rich, Business, Earning, Finance, How to, Millionaire, Misc, Miscellaneous, Money, Savings |

Congrats, you are going to be a millionaire. The urge is very much visible in you because you have taken enough pain to search this article and now going through it. I am going to give you a technique by which you can not resist but get rich. Don’t worry you don’t have to sign up anywhere or purchase anything, it’s absolutely free. The rules are so simple yet you have overlooked them altogether. It’s because we think every thing in a complex manner. The idea is simple and easy to put in practice. Now my friend let us begin. Have you ever calculated how much will you earn in your life time. Probably not; then first lets do that. Suppose you are going to earn $5000 per month for next 30 years.

30 years = 30 X 12 months = 360 months.

Earnings per month = $ 5000

Total Earnings in 30 years = $ 5000 X 360 = $ 1,800,000

If you save even half of that amount, then you will have $900,000. Add recurring interests you will have earned on the amount, and then you have a million. So you will a millionaire in 30 years.

This finding gives us the first and most important rule of getting rich: Consume less than you earn. This theory is validated and will automatically pile your money.

Then let us proceed to second rule: Generate a second income.

Let us discuss this in brief. Suppose your salary is $5000. And you have a garage. Then if you rent it out, then you may earn $750 more per month. This is what basically this rule states in simple language. The basic idea is to generate a passive income besides your mainstream income. 

The last and general rule is to ask oneself before purchasing anything, “Do I really need this?” and give a true answer. It is not actually a rule. It differs from person to person. Some may argue that they earn enough and want to luxury. If you do a market survey, you will find there are many products with similar composition or specifications. Study a little deep and know the utility and effectiveness of the product from the consumers who have already used it, like your friends or siblings. Then go only for value for money and do not lose money to show-off products when you actually don’t need them.