I recently read an interesting article on Readers Digest website - in this article 5 self made millionaires share their secrets to their wealth building success…Here are the six tips (as shared on RD website by the author - Kristyn Kusek Lewis)….

1. Set your sights on where you’re going

2. Educate yourself

3. Passion pays off

4. Grow your money

5. No guts, no glory

6. And finally - The Biggest Secret (keep reading to find out what it is)

Let me now go into each of these points and write about what they mean to me…

1. Set your sights on where you’re going: Aim high….Don’t let your past or your childhood limit your dreams…Not all successful people come from wealthy backgrounds…In fact the majority come from very modest backgrounds…Financial prosperity is your birth right.

Have financial goals. Write them down. Goals are dreams with deadlines. You need to have time frame next to each goal otherwise you will lack the motivation to achieve the goals. Draw up a plan on how you plan to reach all your goals. Break the big goals into small goals…And the final and the most important step is to take action Revisit your goals frequently and monitor your progress…Make sure you are on track to reach your goals.

2. Educate Yourself: To become rich you need to have an understanding about ‘how money works’. It is this knowledge that will help you to multiply money. But many people falsely assume that this knowledge is beyond their understanding capability. When you first start out, all the financial jargon can be very daunting. I know how daunting it can be from my own personal experience. Here are some of the ways in which I started off:

I took baby steps

I started by understanding simple things - example how credit card works

Every time there was an out flow of money (for example bank charges a fee), I found out why I am being charged rather than accepting it.

I researched before I made purchases.

I researched before I put money into any asset class.

I read the personal finance articles in local newspaper and magazines - I didn’t understand them all straight away but I kep’t at it and soon started enjoying it…

The best part of the ‘Financial Education’ is it can soon get quite addictive…Once you find out one way of making/saving money, you will want to learn more and more ways…

3. Passion pays off : Whatever you do for living, make sure you are passionate about it….Passion is what drives you to succeed…If passion is lacking irrespective of how many hours you put into it, you will not see the results you are expecting. Work should not be a chore but something you enjoy…If you are currently in a job that you are not passionate about then may be its time for a change - I am not advising that you quit your current job straight away but rather do some thinking and find out what your passion is and slowly (depending on your circumstances) move into your area of passion…

4. Grow your money: Make money work for you. Invest in assets which will grow in value…Try to stay away from depreciating asset classes (like a car - We all need a car but don’t buy a car that is beyond your means). The aim is to multiple one dollar into many dollars.

5. No guts, no glory: This does not mean you need to take huge risks to make money…To me, this means that we have to be proactive, think of new ways to make money and get working on the ideas. Some people are afraid of debt. But debt (in the right amount and for the right investment) is good. You don’t have to wait to pay off one house to buy another…If thats your mentality then you will end up with just one house. Once your debt levels for one property has reached to a good manageable level, start looking for your next investment property. It is quite easy to take the wrong meaning of this success secret. All self made millionaires are careful with their money. They understand the value of money..They are cautious but are always to ready to invest in assets which have an acceptable level of risk.

6. And here is the biggest secret of all - Stop Spending: This secret is straight forward and easy to understand but yet this is the one that most don’t follow. To me this secret means three things:
a. Don’t spend more than you earn


b. Don’t spend on things you don’t need


c. If there is an opportunity for saving money then take it…

The author of the RD article says that self made millionaires spend “with a middle-class mindset”…

Topics: Cuppa Time, Saving Money |

One Response to “Secrets Of Self Made Millionaires”

1. sidnee Says:
   June 24th, 2008 at 5:51 pm

   Hi there, nice tips!

   Recently i’ve stumbled upon a Free eBook and it has helped me to make some money since and i thought you might be interested. You can write a review of it to share with readers if you find it useful

   (Instant download the Free eBook through my link, no opt-in required too!)

   Best,
   Sidnee.

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