Hi
Thanks to whoever has viewed my blog, I hope you will continue to enjoy it. The one neat thing about this blog, is that it tells the story before I know how the story will go. Most successful people write a book about how they did it, after they did it. So I have been searching, reading and thinking about how to become rich. I have found a few common themes that I can share with you.
You will have a hard time becoming wealthy by working for someone else. Well that is not totally true, it just takes a lot longer. You can invest whats left of your paycheck in something that will net you a decent return, by the time you retire you could have a million dollars. Of course it depends on how much you invest per year, and how early you started, the earlier you start stuffing it away the better. That is one thing I actually have put in a solid effort in doing, and have got results. I have ten percent of my income automatically deducted each pay check, and I put it into a RRSP. Now when I started a few years back, I would just invest in a fund my bank would suggest. Not a very worthwhile endeavorer, most times I would just beat inflation if I was lucky. So I read up on investing, and decided I would start buying and selling stocks on my own under a RRSP umbrella. What I mean by this, is that I have an account with money in it that is considered an RRSP, I buy and sell stocks on my own to grow the portfolio. I pay a fee every time I buy or sell a stock. I first started it a couple years back, and the first year I barely broke even. I did not give up, and this last year I moved all my mutual funds into this account, I averaged over 25% for the year of 2010. Now there are probably a lot of people that made way more, but I learned, and did it myself. I beat what the bank funds did. This is risky, unless you are going to take the time to learn, keep a close eye on it, and be able to take risk, and not get too emotional. But if you can handle it, it is a good way to increase your returns. The more interest you can make, the faster you can retire. Now this is all great, if you are not in a hurry and don't mind waiting until you are ready to retire to enjoy your million. The other problem most of us face, is finding enough money to invest after we have payed all the bills, put food on the table, and gas in the car. Another is the fact that most of us think we just need a little more money, but the more money we make, the more we spend. We need to work at reducing debt and increase what we invest, and invest in the right things. Taxes also take a big bite out of our income. The problem with a job is how it traps you, you make enough to pay your bills, your afraid to stop because you can't see how your going to pay your bills with out it. As you get older, you buy more and more things and you pile up more and more debt. Making it harder and harder to get out of the trap. We buy too many things with credit, rich people don't borrow money for luxury items, they buy them with profits.
So to become a millionaire you need to have a business, if you can start the right one, you could be a millionaire before you need to retire. You also pay a lot less tax with a business then you do with a job.
So the first step, and the hardest, figuring out what business to start, and how.
One other simple thing, think about what you want, and don't focus on what you don't want. Simple, I am sure you have heard it before, but it takes some discipline to implement, and I am trying.
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