Wouldn’t you like becoming a millionaire? Isn’t that everyone’s secret dream, to have a lot of money? You could go on that expensive vacation you’ve always wanted without a pocket pinch or you could purchase all that fancy household stuff. Yes!! To become a Millionaire is quite a goal but!! If you think it is impossible then think again, because with dedication, planning and saving you can actually become one according to financial adviser David Bach whose new book “smart couple finish rich” teaches you to make the impossible possible.
In his new book David Bach shows you how to save to be a millionaire with a little strategic planning where you need to start saving just $2 daily if you are 20 years old or $20.55 if you happen to be forty. Before you hit 65, you are already a millionaire. Sounds good doesn’t it? Well read on.
Bach says that the road to riches is a carefully devised saving and investment plan that you need to start as early as possible. Bach has created a chart to this effect which illustrates how an individual can accumulate wealth by saving over the years. That may be a pretty hard thing to do but it isn’t impossible if you pay attention to the plan.
The chart begins from scratch where it assumes that you don’t have money saved up at all. It also makes an assumption that you have a 12% return annual. This may seem rather unusual given the fact that the standard rate of return is 8 % but Bach wants to show what a few dollars are capable of doing. The chart numbers may not be accurate because of not taking account taxes. But it certainly helps younger people appreciate and value money more. Saving from an early age will benefit you immensely.
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The Key is to invest and watch your money grow. Just saving your money won’t do, a part of it will have to be invest into time tested funds. In the book “The millionaire next door the secrets of America’s wealthy” it was declared that the average number of America’s wealthy millionaires invested 20% of their income where the majority live beneath their actual means. Another book to read is “Rich Dad Poor Dad: What the Rich Teach their Kids about Money that the Poor and Middle Class do Not!”
This turned out to be the #1 book for advice on personal finance which sold over 27 million copies worldwide. You may earn a large sum of money but that won’t make you wealthy, it’s what you do with your money that counts in the long run. Your money won’t grow just sitting there; ultimately you end up spending more and more of it.
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If you want to become wealthy, then you need to start investing your money as early as possible. Says Bach “Becoming rich is nothing more than a matter of committing and sticking to a systematic savings and investment plan," writes financial adviser David Bach in his book " Smart Couples Finish Rich ."
Bach also says that it doesn’t take money to make money; it takes the right decisions. This is why he created the chart shown earlier where you can have one million dollars by the time you reach 65. However, it’s possible that you might find the process of investing a bit complex, but don’t give up because financial planning rakes abit of time but that is time which you are spending doing something productive in securing your future.
The authors of “Millionaires next door” William Danko and Robert Stanley in their book say that those who accumulate wealth spend a lot of time planning how to invest in comparison to those who aren’t wealthy. Earning a six figure salary is not necessary for becoming rich. This was proved by a survey of 854 middle income workers where Danko and Stanley found there was a positive relation between accumulating wealth and investment planning. This means you need to save and that is the road to riches, not earning a fat salary because it may tempt you to spend more so you are no better off.
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If this has now made you sit up and take notice and you are thinking right now Hell!! Why am I not saving? Here is another chart that shows you how to save $1000 in one year. It is based on the amount you need to save every day for 12 months. By the end of the year you will have a thousand dollars.
Why this chart?? Recent studies found that 1 in 3 Americans would never even have $2000 for emergencies. It also showed that the majority may not also have $100 to pay a hospital bill without having to borrow the sum. The bottom line about this chart is simple. Don’t waste your money!! This chart is suitable for any income level so regardless of how much you earn, this will help you save a thousand dollars by the end of the year. Just print it out and stick it on your refrigerator. Store the amount that you find on the chart, keep it in a safe place and by the end of the year, you have a $1000 dollars.
You need to choose a particular day of the week whenever you get paid. On that day choose the dollar amount that is affordable for you. Cross it off from the square corresponding on the chart. To get a better idea follow the instructions that explains the chart.
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It is advisable to consult a financial planner whom you can trust. This will lead you on the right track and put you in touch with the best investment plans. A financial consultant will also help you chalk out a budget and how to use your money.
There are so many ways you can save the amounts mentioned on the chart for example, rather than allow your kids get pancakes from a commercial store, you make them at home. That’s roughly $20 saved. Small little sacrifices go a long way in helping you save.
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The thousand dollar savings chart was created by a financial blog called Medium Sized Family which helps small families save money. You can also use a helpful bank calculator that shows you how to save money. Just remember the initial amount that you start with is important for money growth.
Saving money takes abit of commitment and small sacrifice. Instead of getting that coffee or juice during a break, think of putting the money aside instead. Curb your cravings and think money while doing so; it will definitely pay you dividends in future. Don’t think it can’t be done, because there are many couples who have managed to save money. The numbers in the first chart on how to save to be a millionaire gives you the best idea how to put away a few dollars every day and that is going to make a huge difference in your life.
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