Three Principles Made This Family Into Millionaires; Anyone Can Do It!
When you think of what a millionaire looks like, what comes to mind? Someone who drives a brand new Mercedes-Benz every year? Owns a 10,000 square foot house? Who inherited all their money? Are snobbish and uptight and stingy? If so, that's not what the typical millionaire looks like at all.
The typical millionaire in America is someone who worked hard their entire lives, saved their money, and kept the proper perspective on that money. The average millionaire accumulated their wealth within one generation; that is to say, they earned it in their own lifetime.
That's really something incredibly if you ask me, that many people are reaching millionaire status in our country. While there are always going to be the envious, I try not to pay attention to that crowd because they're not the ones being successful in life. Instead, I'm studying and listening to what the millionaires say and do. And boy, I've learned some things in that time.
Take for example the couple in the video above, a case study from Ramsey Solutions. The two of them are now retired and are millionaires. How did they get there? A coordinated game plan.
They started out with a rather small household income, with the husband making about $15,000 a year, and his wife making just $11,000 a year. But they didn't stay at that level, because she wanted to be a stay at home mom for at least some of their married life.
So what did they do? They learned how to live off of one income, and when kids came along they are able to work it out because they practiced it for so long. They also saved money to pay for their son's college and were able to do so without any debt. Then they paid off their mortgage early, and were able to save money like crazy because they had no debt.
But in the middle of all that, there were three guiding principles throughout the entire process right from the beginning of their marriage, principles that enabled them to get to millionaire status.
"Everything belongs to God. Because we believe everything we have has been entrusted to us by God, we live by that principle of being thankful and feeling we have a responsibility to be good stewards. We ask God to guide us and help us make the right decision because left up to our own we're gonna probably mess it up somewhere."
We've got to understand the difference between needs and wants. We had to make some hard decisions about, 'yeah I know we really want that, but we don't really need that right now.' And so we did that early in our marriage, and then we started putting some money away, start hitting some of these milestones that I share with you."
"Everyone can use a budget. We took a notepad and we really wrote down the left side of the ledger, we wrote down okay what are our income levels that we're bringing home. On the right side what are our expenses on a monthly basis. The first year we do that we thought, 'hey we got a little money left over,' so we actually earmark that to savings. We didn't just like, get through the month and it's like if there's anything left we'll save it; we actually used it as an item that we assigned a place to; keyword being used the budget. If you have it, great; but you gotta use the budget."
Here's the deal folks; anyone can do this. Anyone can get onto a written budget, prioritize their spending, and put their financial dealings in order so that they save money. You may need to get some extra work temporarily to help boost your earnings, especially if you're getting out of debt, but America is the land of opportunity, where anyone from any set of circumstances can become a millionaire in their own lifetime.
I'm glad to say that I am trying to live by these principles. It takes sacrifice in the short term, but the long term payout is so much more rewarding than the immediate gratification (though we're still waiting on that!).
It works, folks. They did it, I'm doing it, and so can you.