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Theres anestimated 24.5 million millionairesin the United States.
Its all about being strategic and intentional with yourmoneyand financial decisions.
What types of rules do millionaires especially self-made ones follow to build (and maintain) their wealth?
In other words, pay yourself first.
According to the Forbes article, you should be saving 20% to 30% of your total income.
This means you should save $20,000 to $30,000 for every $100,000 you make.
But they become millionaires because they also think big.
This means spending less than you earn, which could entail eliminating those unnecessary expenses or reevaluating your budget.
And it means dreaming of and planning for a bigger future.
Resist the urge to splurge!
Avoid the urge to spend more as you make more.
As you get a raise, give yourself a raise.
Increase your 401(k) contribution.
Add to your emergency fund.
Your future self will thank you.
But while some debt is good or rather, useful much should be avoided.
If you want to grow your wealth, be smart about how you use debt.
The key is to verify that the money you borrow is working for you rather than against you.
Track Each and Every Dollar
Dont shy away from tracking your spending.
Millionaires often stay millionaires because they track their every dollar.
This might mean using an app or it might mean going old school.
it’s possible for you to start small, but its important to stick with it.
Just be sure to diversify and be prepared to ride out market downturns.
One of the greatest keys to the creation of wealth is time in the market.
When you have just one, anything could happen.
But when you have several, youve got a better chance of riding out any waves.
Many times, W-2 employees dont look at things likerental property and thingsthat dont require direct labor.
Your income sources can be active, passive, or a combination of both.
So, you’ve got the option to get creative with how you go about it.
This could be things likelife insurance or estate planning strategies.
It could also be health insurance or liability insurance.
Just see to it youre implementing the right tools and risk management strategies to keep your assets safe.
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