Jim McIntrye is a millionaire but never earned more than $60k a year. Dave Bach tells the story of his 1st Automatic Millioniare that he met.
looked over their tax returns and financial statements. Their combined earnings for the previous year were $53,946. They had no outstanding debts. They owned two homes. The one they lived in was valued at $450,000. A rental property, which was providing them with $26,000 in rent annually, was worth $350,000. Jim's 401(k) balance was $610,000. Sue had two retirement accounts with $72,000. They had $62,500 in the bank, $160,000 in municipal bonds, plus personal property -- three cars and a boat, all paid for. And, Jim's job would provide him with a small pension. Their net worth was approaching $2 million
Of course I want to know how to do it... don't we all. Dave Bach doesn't provide any earth shattering news here that is any different from his books. However good common sense advice that we sometimes all need to hear again and again.
1. You don't have to look rich to be rich.
You don't need to buy the newest car or have the new gadget. Buying a fairly new car and driving it until it dies is probably one of the smart financial decisions you can make.
2. Pay yourself first
How would they do that? Simple. Every time they earned a dollar, they would pay themselves first. Before any bill was paid, they socked away money for retirement, their home, investing, and more.
3. Sweat the Small Stuff
Nickels and dollars add up to dollars. Dave calls this the Latte Factor. What is your latte factor? Is the soda from the vending machine?
4. Cash only
If you can't afford to pay in cash, don't buy it! Repeat after me don't use the credit cards, don't use the credit cards .
Enjoy your savings!
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