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Theres plenty of conventional financial advice out there that sounds good on the surface.
This isnt to say this advice is badits just not tailored for your ambitious wealth-building goals.
If youre serious about retiring a millionaire, youll need a different approach.
The interest rates on debt can mean that you end up paying much more than you initially borrowed.
So if you have extra income, you should always put it towards your debt first, right?
This can be true in some cases, but not all, Zdravkovicsaid.
It is important to understand what kind of debt you are holding and the cost of that debt.
Different kinds of debt can affect you in very different ways.
Zdravkovic provided an example.
Now lets assume you have $40,000 ofcredit card debtand you make the same $767 a month payment.
You should prioritize paying off high-interest debt like credit cards before you jump in aggressively investing.
Not necessarily, according to Jania.
I look at this piece of conventional wisdom like diets, he said.
If your budget is too spartan, youre more likely to fall off track altogether.
Leave room in your budget forsmall luxuries or hobbiesyou enjoy.
I do not spend whenever I feel like, rather, I simply dont aggressively cut my expenses.
Never Use Credit Cards
Its easy to let credit card debt get out of control.
Thats why plenty of people advise steering clear of them altogether, especially when youre trying to build wealth.
But credit cards also come withsome financial benefitsif you use them wisely.
Credit cards are very valuable tools if used correctly, Zdravkovicsaid.
This will help to build your credit score which can save you tens of thousands of dollars.
A good credit score can help you rent an apartment and lower your insurance rates.
This means that using credit cards to build your credit score will actually save you money.
Go to College
If you want to become a millionaire, you need a high-paying career.
And to get there, you absolutely must get a college degree, right?
The landscape has changed.
A four-year degree is no longer the only route to a lucrative career.
But many well-paying jobs dont require a degree at all.
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