Act Rich or Be Rich

So you want to be rich? The question is, how far will you go to become financially free? One of the rules that I have tried to follow even though it is the hardest is only buying needs instead of always buying wants. To start I look at all the big expenses, like the house and cars. Of course everyone wants the biggest house and the big cars. When on a strict budget and plan you need to know when the right time to buy these wants. At the beginning you need to focus on the needs and invest and save as much as possible. If you want to be be able to quit working or retire at a ripe age, you need to understand the small rules. As you build your portfolio of assets then you can start to make goals so that you can buy the bigger items. It takes time, but be strong and stick to your guns. By not paying the extra $600 a month on a mortgage and the extra $500 a month on the car loan, you can have a net worth of $66,000 and that is without any intrest incurred on your investment. Now look at any part of your life and see what can be cut out and be saved. If your goal is $100,000 in a liquid type account you may just need to not have the expensive cars and house, quit smoking, and cut down on the alcohol. It would be possible to do this in as little as 5 years. Then you can start to save more money for the house and stuff. Remember people act rich and most are broke. It is better to have money and not stuff. Knowing my family is well off is more important than driving that Mercedes today. One day, just not today. So next time you go to buy a want, ask yourself if you need it or want it. If it is a want, don't buy it and start putting all the money in a savings account and see how the money grows. Until next week, have a wonderful week and continue your financial education.