How to become a millionaire! - Create financial security in middle age.i
Finances and financial stability is likely something that we all hope for. However, for one reason or another many people find themselves in middle age having to start again. A divorce, an illness, unemployment or a business investment going down can mean years of hard work and savings are all for nought.
Whilst the old addage that money does not buy happiness is true, money does and can buy choices that lead to a less stressful and more comfortable life style.
A few years ago I attended a workshop and the question "what if money really does grow on trees" was asked - seriously! The participants had some really brilliant ideas about how each of them could raise and save $100,000 and turn it into $1million within five to fifteen years.
The first common theme that ran throughout the workshop was perseverance and, in the words of Winston Churchill, "never never never give up." Doing what you love came a close second followed by doing what you love and make money doing it.
Some will say do what you love and the money will follow, in my experience whilst doing what you love is very rewarding, money does not necessarily follow. If we change the statement to do what you love and make money - then, I believe, money will follow.
Here are the nuts and bolts of how anyone can change their financial fortunes starting with a mindset that making money is not wrong and certainly not the root of all evil.
1) Create a worksheet for the month and write down every single penny or cent that you spend.
2) At the end of the month identify all the sundry expenses that you have incurred and see if any of them can be deleted from your monthly expenses and put instead into a savings account.
3) Transfer between 5 and 10% of your monthyl/bi-weekly/weekly income into a savings account and use the amont that is left for your monthly budget.
4) Deposit GST/HST (in Canada) and tax rebates into a savings account and do not include them in your monthly budget.
5) Decide how much you want to save as a total in five, ten, fifteen, twenty and twenty five years time. Without accounting for interest or investments divide that amount over a monthly average. For example: If you are 50 and want to create $100,000 in savings by age 60 you will need to save $833.33 per month. $833.33 is not an unrealistic amount to earn as a second income if you consider writing for hub pages (see link below), selling a product such as avon, taking a second job or a.n.other home based business.
6) Do not include this money as part of your income. This money is future income.
7) Ideas to generate additional income:
- Renting out a room or rooms in your house
- Re-Selling online at garage or car boot sales
- Writing online for hub pages or setting up an on line store
- Selling Avon or a product that you like and are interested in - if you are good at selling and enjoy it.
- Become an "expert" in your field and offer training, consultations or workshops in your community
- Set up a webinar series and sell it on-line
- Take a second part time job in the evening or weekends
- Give up your second car or first car if public transit is good in your area
- Move to a cheaper rental if that works for your family
- Negotiate a cheaper interest rate on your mortgage and pay it off earlier by making bi-weekly payments
- Reduce your grocery bill by $50 per month
- Quit the lattes and buy a really good coffee-maker at home and take with you
- Cook from scratch
- Pay hydro and other bills on time and on a set monthly payment plan
- Do not use credit cards or pay them off as you use them
- Save airmiles for treats and travel
8) Re-consider your relationship with money. You deserve to be comfortable - figure out what that looks like for you and go for it.
9) Do not consider winning the lottery as a healthy pension plan!
"They" say that money attracts money - save your first 100K and the second is sure to follow because you will be creating good and healthy financial habits that will ensure your dollars and cents or pounds and pennies are secure.
"Here's how I think of my money -- as soldiers -- I send them out to war everyday. I want them to take prisoners and come home, so there's more of them." Kevin O'Leary
writing for hub pages
- Lizam1 on HubPages
Welcome to my hub pages - really appreciate being able to join this wonderful community of writers - If I'm followed I follow - I share...