How to be a "Millionaire"..Automatically! - Part Two

I know, It has been a while since my last post about how to be a "Millionaire". Anyways, remember my last words in the previous part? Yes, it is all about "Patience".

I got many people who were asking and wondering when I am going to write about my second piece of work, and they sounded it, like I should write a series about it. Firstly, I am really grateful and proud that you have a genuine interest in reading my blog. I really appreciate that. Secondly, I am quite confident that the key words for such enthusiasm were:

"Millionaire" and "Automatically" , right?

Well, let me confess something. I don't have a magic formula for that, neither I think anyone does. But, I have come across a book for a reputable author that make things for me clearer and have more sense, when it comes to money management. This guy is called "DAVID BACH", and his lovely book is "THE AUTOMATIC MILLIONAIRE".

The things I like about this author, that he is first of all, a well known financial adviser, that has been interviewed many times in the TV, radio, newspapers and magazines, as a financial expert, that helps people to manage their wealth, especially those who are desperate for help. Also, he is an author of many best sellers, like "Finish Rich", and knows what he says, and not just selling dreams for the people. In short, the guy is damn good in his field, and particularly his book that I read, is far from complication, misleading, gambling, and most importantly, brain washing! He smartly starts his book by a disclaimer:

"..Let's be clear about something. I am not promising to transform your financial situation overnight......What you'll learn to become a millionaire- steadily and surely -over the course of your working life..."

Well said, isn't it? OK, let me share with you some key notes that I thought they are easy to understand, yet difficult to do by many people. His entire discussion is about being a millionaire and retire before the real age of retirements. So, his plans practically, for those who wish to be a millionaire over medium to long terms only. That's why patience is so much handy here!

First of all, he made it clear when he said that being rich IS NOT like showing rich, AT ALL! We can always find people that wear expensive clothes, drive luxurious cars, have wonderful vacations, but when you check their monthly financial statements, they are badly in debts, and live a pay-check to a pay-check. These type of people live their live as materialistic as possible, and wouldn't bother what to save or how their financial situation would be 5 years down the road. I call them Continuous In Debts people (CID).

Another interesting fact he talked about is the "Latte Factor". Basically, we might overlook unintentionally, our little expenses, just because they are tiny, and we might think that they have no big roles on our savings. Well, supported with figures and statistics, he again proved that if we manage to know what are our these little expenditures, that we do needlessly, we can have a lot of savings, in the future. A good example he gave, that I personally know many like to follow, is buying a coffee every morning from a big branded coffee shop chain. If you save half of that money everyday, and with a compounding interest factor, you can have an unexpected amount of money later on. So on so forth for other items. So it is all about finding your "Lattee Factor" and try to eliminate it from your daily or routine expenses, and the coffee was just an example, where he actually derived the word lattee from.

An interesting secret that David Bach revealed also was to do with the order of your expenses. He reckons that everyone should pay him/her self first, then subsequently, look into other things. We always say we will save by the end of this month, or I will try to spend only 80% of my income this month, and save the rest...etc. Actually, nothing, most of times work out, right? The concept of paying your self first is not a new one, to be honest, but I don't know why people still can't take this and do it! Simply, we should save every month, at least as a starting point, from 5% to 10% of our income. For example, if we earn every month $1,000, we should save something between 50 to 100 dollars, at least. People need to assume that they get only $900 and not the $1,000. Thus, they can accordingly adjust themselves better with their buying and other expenses.

See, all this is can be quite workable for anybody looking for a financial assistant, without a need for capital budgeting or any other fancy financial work around.

The book still rich of knowledge and easy techniques, and let us see if you can commit your self to what have been discussed so far..

I will give more tips in my third post..

Till that time, BE A REAL RICH and show them how much alive you are!

How to be a "Millionaire"..Automatically! - Part One

Well, I bet that you are one of the many many people who would like to be one of them (not die trying of course), and in a very short time, I guess. True? If you are not, still I believe you would like to continue reading the coming lines, at least, as it would be out of a normal human being curiosity!

Truth to be said, I don't believe that there is a secret normal honest and smart way for anyone to get rich so badly in a very short period of time. It is like injecting a chicken with some hormones in order to gain 2-3 KG more in a just 12 hours! The increase in weight will be remarkable, but simply, it is not the normal way and the way it should be, and anyone would question the healthiness of it.

I am a realistic person who thinks that the god has created this universe in order to work in order and according to certain rules and standards, that were sat previously, by his almighty. Said that, he has given, intentionally, a chance for the mankind to explore things by their own and do whatever changes or amendments they wish. But still there are certain things that if altered for sake of having quick desired results, it would give some counter results, that on the long run, can be more harmful than advantageous.

Think about this again, and reflect your thinking to quite many things we face everyday or hear about in our lives. Did the below turn out to be a successful attempts throughout the history?:

- Loosing (or even gaining) weights, just after having some pills.

- Depending entirely on robots as teachers in schools.

- Performing an absolute perfect and enjoyable sex, merely by using Viagra!

- And becoming a multi-millionaire in no more than 1 year!

The thing is, the above can work out, as I said for a period, but the challenge is, can it be sustained? I doubt it. I strongly believe that they can be fruitful, if they are part of a well-studied cycle. In other words, they should be treated as elements that are part of other elements that make the whole attempt a rewarding one.

I want to talk more about the last but not the least, in the previous list: "Becoming a millionaire" in a short time.

I know many guys who are eager to become wealthy. That is plain right, and everyone has the freedom to dream about it, and work for it, the way he/she wants. BUT, I don't believe at all, that there is a secret where anyone can be crazily wealthy, in no time, with no efforts and legally. Of course, if it happened that you inherited some wealth, this is totally a different story, but what I meant is working and wanting to be wealthy, by your own hard efforts.

Well, you will come and say: "OK, what about winning a lottery? or gaining profits for the steep increase in the shares prices?". Actually, studies have shown, as I had read that once in a book called Success Principles for Jack Canfield, that more than 80% of those people who are getting absolutely rich quickly, loose their entire wealth and become bankrupt in less than 5 years. Why? of course, it wasn't planned well for, their subconscious mind has not been prepared for it and most importantly, it happened with no efforts!

Easy come, easy go. That is how I think about money! We need to work hard, to enjoy being paid what we deserve. We need to plan our income, so we can maintain our savings, and we need to accept the fact that wealth should come, only if we are serious about getting the hard-smart way.

I have been bombarded a lot with those silly ads, e-mails and word of mouth, to invest in such and such, do this and that, and you will be able, in less than 2 years, to buy a Ferrari every weekend. I have come across many websites and read a couple of books that teach you how to become so frickin rich, and trust me, nothing has worked out, and I have never heard about anyone really did it. It is purely misleading and deceiving people for their hopes.

I understand why you and many others out there are so much interested in having the extra money or a mean of income. But, why we don't do that scientifically and realistically? Well, the good news, I finally reached a way to make our BIG dream come true. Now, it might not be the PERFECT SOLUTION, but it is A way to reach there and become a millionaire.

Hasty to know it ha? Well, this is the first lesson: "Patience".

My next post shall be tackling this..

Till then, show them how much patient and alive you are!