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September 19, 2005


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No offense, FMF, but is it really that revolutionary?

If any of your readers truly commit to becoming millionaires, they will eventually become them. That's just common sense. And that's precisely the principle that Napoleon Hill, Donald Trump, and many many others teach.. :)

Based on my experince, this is a revolutionary thought for many (maybe not for you, but it is for most people -- at least the ones that have come to me for advice).

Most people think/assume that you have to have a large income in order to ever be wealthy. This is simply not the case. Hence, it's revolutionary (or at least surprising). ;-)

Fair enough. I guess I just have been thinking that it makes sense. If you want something bad enough, you can do anything.

By the way, the site is fantastic. Bravo. :)

I purchased a house in 1999 for $139,000.00. The house is worth $480,000.00. I have paid off $50,000.00 in principal on the house the last 6 years. This house has been modernized and is in great living condition near all. Can anyone tell me if I should purchase another house and rent this one out? I am new to investment strategies and believe this would be an excellent move for tax write-off purposes well as all the other pluses. Any recommendations would be appreciated. Thanks. Jeff

Anyone have any advice for Jeff? I know what I'd do if it were me, but I'm not so sure that's the right move for him.

I completely agree. Saving is important, but if your savings aren't placed in a high-yielding account like an online savings account or mutual fund, you'll actually lose wealth due to inflation. Have you ever done any studies that inflation in account? I would love to see an article if one hasn't already been published. Thanks.

This is the greatest secret of wealth-building besides the one called "compound interest." In 1995, when I was earning $6200 per year, I determined to stop spinning my wheels and increase my net worth from $4000 to $5000. In that year I actually saved $5000! I eat pasta three times a day and ride my bicycle to work. Since then, my income has risen into five figures, but I continued to save over 60 percent of my income and my net worth is on track to reach seven figures in a few years. I believe that one of the greatest impediments to wealth-building is the SUV. It costs more money than necessary every time you turn the key, or buy tires or oil, and it forces up the price of gas, which means everybody pays more for everything, not to mention polluting the air, wasting preciouss resources, blocking drivers view of the road, backing over small children, and rolling over.

One of the best ways to ensure that you live below your means is by giving regularly. If you give the first 10% of your income, it puts a lid on what you can "afford" to spend. If also changes your attitude toward yourself and others. By the world's standards, Americans are quite rich. We really don't need all the things that are pitched to us everyday on TV, the radio, and newspaper ads. Giving to others first keeps that in perspective.

It's true....just save money to become wealthy. The key is to put Savings in your budget as one of your bills....something you HAVE to pay each month....and pay yourself first!


Ned --

Here's a game plan that should work for you:

I always wanted to be rich some day and now by reading your post I know it never to late to start saving. I guess if I have save only $200 a month I would be very far right now. Thanks for the tips, no actually for waking me up.

I got rid of my TV about 12 years ago.So I don't get any sales pitches except on the radio,the newspaper,or mailbox.According to,if I save $600 a month for 15 years(180 months)and earn 24% a year-a mighty big,not impossible return-I will have $1,000,000.00, which will have a buying power of $600,000,in 2022.By the rule of 72,that is a double of principle every 3 years...Total invested is $108,000.$600 per month equals a car payment of $368,plus NO latte ($4*22)equals $88,plus Plus NO McDonald's ($4 *30)=$120+$14 miscellaneous=$600 saved,and invested.Just a crazy idea.24% is a really large return,and perhaps impossible,and perhaps illogical.I earned 40% on croc's (CROX)back in May 2007.I know this sounds improbable,but...I'll see you in 15 years?

Toure, let me know when you find that investment with the 24% return!!

How to become wealthy.
1)Put the TV out by the dumpster.
Drive over it with your car.Watch out for kids and derelicts.
2)Write down every thing you spend for 4 weeks.Lose the $4.00 coffee=$88.00 per month.Lose the cable=$70? per month.I never had cable.What do they charge? Lose the $5.00 lunch=$110.00 per month.
3)Lose the cell phone.$39 per month?
4)Save $500 per month for 10 months.Buy a 1995 Audi A6 wagon.For cash.A fine vehicle.Save $150 per month to pay for repairs.
5)Rent a $500/month apartment(in Colorado,600 sq.ft.).As opposed to $450/mo.PI,plus $120/mo.HOA ,plus $50/mo tax,Plus "special assessments".plus insurance $50=$670 for a condo.Renters save $170,plus $50/mo. incidentals.
6)Embrace the Ramen.Japanese eat ramen every morning with little ill effects.Add 8 ounces vegetables=2 servings of vegies.
7)Read Investor's Business Daily.As a civilian-this paper is a right-wing capitalist newspaper.Ignore the right-wing part.You will make money just by reading and absorbing it.Warning:IBD is about investing in growth stocks that go UP!

New to blogging and don't seem to have the trackback thing working with blogger. Added a blog about this post "Great Finance Blog Post - How You Can Become Wealthy" at So, wanted to stop by and let you know I really liked this post. It's funny how many times I hear folks say that they just haven't started saving to their 401K or even halted savings all together. Usually, because they have too many expenses right now. Yea, it seems obvious, but obviously everyone doesn't get it. So, I'm encouraged that my efforts to get any friends or loved ones started on the right track, can pay them huge dividens when it kicks in. I'm glad someone prodded me, long ago.


1) Got rid of my TV five years ago.

2) Got rid of cable 10 years ago. Never did the $4 coffe or $5 lunch.

3) I've never had a cell phone.

4) Got rid of my car five years ago.

5) Got one of the cheapest places in town. I put an inordinate amount of time and effort into finding affordable housing.

6) I live a pasta, rice, PB&J lifestyle.

7) I have read IBD, but it hasn't done a thing for my bottom line. What good is reading it if Ihave no money to invest?

I bet homeownership has a lot do do with wealth accumulation.

Homeowners on average spend a much lower percentage of their income on housing than renters pay, and this percentage tends to decline over time.

When you're paying 20% more of your income on housing than the homeowner next door, it should surprise nobody when he builds wealth and you don't.

Minimum Wage:

There's something else you could do to save money.

Sell your computer and get rid of your internet connection.

I believe becoming wealthy is more positive and affirmative when it comes and relates to financial abundance. Wealth could mean many things - it could be wealth in terms of health, relationships, spirit, heart, financial, attitudes and values towards greater abundance in life. What we could rationalize is that becoming wealthy does mean in terms of having abundance of money alone, it represents many other things as already above mentioned. Wealth in a greater avenue simply means having the resources or liquidity (cash or any other accounts near to cash such as marketable securities - stocks, bonds, treasury and mutual fund shares)
in meeting financial obligations on time as the need arises. The other thing to remember in becoming wealthy is the need to have traits and I call these two traits : discipline and the ability to exact happiness and enjoy things on engaging in investment ventures. Just as the road to poverty is to simply enjoy instant gratifications or instant expenditures, the wealthy simply afford themselves to enjoy life by investing their monies and watch it grow. Money begets money so unless an individual commits himself to frugality and then save for the purpose of investment activities it will be as if we are in the contentions of what Julius Ceasar once said: " There is a tide in the affairs of men, which taken to the flood leads on to fortune, omitted all voyage of their life, is bound in shallows and miseries. On such a full sea are we now afloat, and we must take the current when it serves or lose our ventures." This is now the jump point, we must take the current tide of opportunities and wealth by taking strides in having financial investments and opportunities. Pay yourself first, that means if possible save 10% if not 5% of your monthly salary and save it in the bank after a decade put it in a mutual fund investments if you are conservative but stocks and bonds if you are brave enough to risk and win bigger returns. As one author once said: " Money is not everything it is the only thing." Be very careful with the money in your hands, manage it wisely and prudently or others will do it for you. Remember there is that wealth concept when it says that when there is that financial events which might have happened or could have happened and no one would venture or step into that sides someone would venture and attempt to do it. Do not wait for others to shape your wealth in life instead put an effort or actions to attain it. Dream your dreams until your dreams will come true. Welcome wealth in our lives and let poverty be the thing of the past.

lol all of this pretty much sounds like this,

"become poor, so you can become rich"...



You must remember that the definition of a rich person is this: A rich person is a poor guy with plenty of money.

I am not American, so I am not used to spend my money for useless things. Excuse me Americans! :)

Income is very important to become a rich, so…

You have no chance to become a rich if you have not started your own business.

Be professional on your business, be honest with your clients (customers).

Do not hold your money on your bank account (pocket), just spend it to increase your income. Think how to transform your every cent to your rising income.

Time is another valuable thing you must to use to become a rich (TV is spending a lot of time and mind, so I am not TV watcher).

Finally, I‘ve got +20-25% income the last 5 years, - since I started my own business.

I want to become a rich person

Working on it! *laugh* I have a TV but no cable television stations, we just watch whatever DVDs we have lying around, and if we get bored there's a library branch nearby at which I can reserve anything they don't already have on the branch shelves. As long as I turn it back in on time, it's free. Some city systems charge a small fee for DVD checkout so I'm extremely fortunate.

I monitor my spending and income in GnuCash. I'm about to go back through last month's figures and beat it into my brain what I need to cut out of my budget.

I will vouch that if you get a house that is priced low enough, the monthly payments are way lower than rent and if you get a fixed-rate mortgage they will not go up year after year as rent does. You also don't have to jump through hoops to do repairs as you would in a rental. The only drawback is they want to see three years' worth of tax returns and I've been unemployed for the last three years (long story), so I have to put that off and keep renting for a while. :(

I want to start my own business from home so that I have something to file taxes on every year, plus my own income, and not necessarily have to put my daughter into daycare, or at least not have to do it full-time. (Also it is easier to juggle daycare and work by bus if work's at home.) Had I gotten on the ball about that when I first started living on my own shortly before her birth we would probably be sitting pretty now, but I was too distracted by mental health issues and interpersonal drama so I have a lot of catching up to do.

But I know I can do it. I just have to set the goals and go for them.

You have an awesome blog here.

Biggest saver for me over the years has been buying used vehicles. Research Consumers' Reports repair rates and "best bet" used recommendations. Pick from that list and always offer lower than ask price. Check vehicle blue book value before you shop and think about a certified pick from a dealer.( They usually have a warranty and checked out OK mechanically.)I love my used '03 Honda CRV I picked up for about 14K last year. It gets about 25 mpg highway, since it's a four, not a six..

Best is to FOCUS All Energies on Creating Wealth through a Good Career (if you can), get an expense account with this job and write-up all you can through it. Now, that is NOT possible for all, but there is NO REASON to ratchet down your life style by not watching movies on Dolby 7.1 Home Theater or having a nice car to drive (with lowest possible insurance).

I started with $3400 coming into the country 20 years ago to the land of opportunity, and I have found it.....and here is my short story.

I do most of what everyone said above, but I go a bit further.....I am saving/creating money by opening and closing credit card and bank accounts (to get free money), but in addition invest aggressively in ETFs (using DCA methods), make decent 6 figure income from my career (1st gen American), write off my mileage, do my own taxes (to maximize write-offs), investing in one apartment building (next week for the 1st time) with hard earned savings, eat at TGIFs, On-The-Border, Chinese Take-outs, Taco Bell & Home-made meals (made from scratch), use tube-lights in the home, keep local heaters in winter (with home at 63 degrees!), AC at 79 degrees with usage of fans (in every room), only get perinneals from friends gardens (barter them), drink water (instead of coke at restaurants), dry clothes inside home on racks, use ALL products to it's destined end of life, buy used books, get most of my reading publications including e-books (for free) online, carry no credit card debt at all and many many many other ideas.

Been one of the 10M Millionaires for a while (in my late 40's now), but live the lifestyle of someone who is making $50K (and no debt), and enjoy life (watching every dime that goes out).

Good luck to you all, and thanks for coming this far in reading my story.


ps: Just applied for a ExxonMobil card to get $10 off per month for 4 months on gas buying. Got $30 from Amazon and $30 from and bought kids some great Wii Accessories......! Getting ready to apply to AMEX Gold Card for a Free Airline ticket. Every 'savings and every free dollar' counts towards the 'end goal'.

Of course, if you are striving to be here, I have one word > "SACRIFICE". Think about Day After Tomorrow, instead of Today.

I'm cool with the sacrifice. I think having money in the bank and living like you have a normal income is the best way to go... you never really need to "want" - just live comfortable without going overboard.

It's good to hear that I am on the right track. I came from a poor background, but my parents gave me an excellent education and great financial advice so that I would not have to learn from the same mistakes they did. I am now almost 23 and have saved nearly £10k in the last year. I do not have a brilliantly paid job, but I have more disposable income than most people I know, simply because I do not WASTE money. I work hard for it and I want to enjoy it, not throw it away on rubbish.

I do not need (and therefore do not own) a car or cable tv. I use a mobile for work (which they pay for). I cook for myself and don't buy take away/junk food. I walk everyday instead of paying for expensive gym membership. I save up for expensive clothes as they are better quality - although my definition of 'expensive' is not based on the label (I prefer to hunt around the smaller streets of London and get exactly what I want or have things custom made). I've worked in sales in the past and hate being 'sold to'! I know what I want and find it. I own a large house, but rent the spare rooms to lodgers which pays for the mortgage. I have never owned a credit card and have no debts. If I want something and can't afford it at that moment, I either save up or decide later that I didn't really want it - usually the latter! I have had a long term saving plan since I turned 16 and have stuck to it more or less religiously. I was taught the 20/20/60 rule. You put 20% of your monthly salary away for retirement, 20% away for general savings and only treat the remaining 60% as your actual salary. Most of the time I save nearly 50% as I simply don't need the extra money right now. I do not have a family to pay for and would rather put the rest away for later when I might need/want it.

Perhaps it does seem crazy to those who were not taught basic financial skills, but I do not go without and feel much happier knowing that I have money put by for a rainy day. Compound interest is a nice buzz too - I recently worked out how much interest I had earnt on my savings since the age of 16 and was blown away! I want to be financially rich one day and it's much easier to start now and get into good habits.

Find a way to make money by doing what you enjoy. It is so much better for your well-being and health.

How do I know? Because I did exactly that. I earn my money as a balloon artist. I can make as much money as I want. Jokingly, I call it my money printing press. I can go out and "print"/earn money every day, I don't even do it. I have plenty of money for my needs while working only 2-3 days a week, weekends mostly.

Life is short. How do I know that? My husband is dying. It is always on my mind, how short our lives are, how important it is not to waste our time and find the right balance between making money and doing everything else you want to do while you are here.

I say, find what you love. Now, with blogging and other online developments, there are money can be made in anything. There is a worldwide audience for some obscure subjects out there. Find your passion and turn it into profit center online or off-line. Enjoy yourself, please your customers and money, good money will follow.

i love the idea of saving i have been trying, but my outgoings seem to exceed my income, although, the bills are getting paid, there is not too much left at the end of the month. I cook from scratch, work near home so I've cut down a lot on petrol, found a lower insurance with the same package as I had. Dont really go out a lot spend a lot of time with my family, but I am not worried by bills coming through the door now and I am not overdrawn in the bank any more. I write down in a diary every little penny I spend. I limit myself to a set amount daily. I treat the children once a week to a takeaway thats for us as a family. I like being in control of my money. I have read before if you are not in control of your money, someone else will be. I love the buzz of having even a little bit left over in which I'll work out ways to improve this I love reading others overcome their money 'problems' their ideas are invaluable. I hope every one succeeds.

Great information and insight! I so needed this. Will post in the future on my progress ;-)

Spend less than you trite that it has become revolutionary again. :-)
I think the key is no debt. We buy all our cars for cash (Consumer Reports recommended only) and drive them for 10 years. We bought no new furniture until the house was paid off. I always had a "spending and investment plan," which has helped increase our net worth quite a bit. (People who have a plan have a 30-40% higher net worth than those who don't.) I don't worry about every penny, though. There has to be some fun in life, and eating out with friends and traveling are part of "the good life" for us. If I were to give advice to someone just starting out, I would say start saving right now as much as you can even if it's little at first. I remember when we still had a mortgage, maxed out on a Roth, saved in a college plan, etc. With so much money coming out of our paychecks for savings, sometimes we felt really poor. Eventually it paid off though. It helped that we have some cheap hobbies, such as reading. We have a comfortable income; but in my line of work, I will never be rich. But then again, it's not just what you earn, it's what you keep.

You don't have to cut everything out of your life to build wealth. I simply 'reduced' the same things everyone is saying to cancel or sell off and it did wonders. but at the same time I can still watch basic cable, use my computer and internet connection to INCREASE my income, eat at home as much as possible etc...
I enjoyed these things when paying 60% more for them, so I enjoy them at reduced levels also.

What you're starting to see is all these folks who are laid off or their spouse has lost a job that are now looking for legitimate work. And the work-at-home option is very appealing to them.

It is all about priorities. I see people on here who say that they eat ramen noodles and live very frugally every day but are going towards fat savings accounts. Great - but what about quality of life? Is having 200k in the bank after 20 years really worth having a low quality of life for that length of time? It is very simple math: if you want to have a comfortable lifestyle where you live in a nice place, can travel, have spending money for your hobbies (we are not machines you know) and pay your basic bills and expenses in life, then - with a set income - you cannot become rich. Unless of course you skip travelling, having any sort of fun activities that will inevitably require some money, buy things that you like etc. You have to live in a crappy dump in a run down neighborhood, eat basically unhealthy etc. Is this the kind of life most people want to lead for the sake of a huge bundle at the end?

Donald Trump didnt become rich by eating ramen noodles and biking to work. He became rich by making a lot of money and then investing that money into even bigger projects. It is one miserable existence if you live your life for tomorrow and scrutinize every dollar you need to spend. Of course it is everyone's choice but the problem most people have with saving is really about that. Is it worth it for me to live frugally for 30 years, so i can have a million dollars when I am 60? Saving is important but if it starts compromising your quality of life, I think it is burdensome and counterproductive. People with a low quality of life tend to be unhealthier, unhappier and consequently less driven and motivated. If you dont get to do the things you really like cause they cost money (and what doesnt cost money these days) it will wear you out. You'll run on empty.

So income does matter and I believe what this statistic is not revealing is the price you pay for living frugally and saving most of your income. I hate to throw around platitudes, but there has to be a healthy balance.

I could be wrong but I believe income does matter. If you make $12/hour, becoming wealthy is pretty difficult.

I do not know if ideas on this blog is only for developed countries or for folks from other parts of the world.

I live in Africa and have same desire to be rich, some of the ideas shared here like saving, I found them very interesting and workable in every situation. Saving in Africa is something quite different as most do live way way below poverty line...

I have different ways of making money or building wealthy from an African's conditions.

1.Save as much you can , from every income you receive.
2.Give out 10% as your tithing + giving to others eg needy...
3.Buy properties, in Africa you can buy land at a low price and these lands do appreciate at double or thrice their initial value every 3 to 4 years.
4. Invest in a small business , you can start a small biz out of your home eg home baking or making items for breakfast , if you live in big cities you can be a supplier to restaurants in the downtown, as most restaurant lack kitchen space or staff or lacking time to prepare their breakfast items. Mind you labour is still plenty and cheap in Africa.
5.You can make extra money by sharing with commuters ready to pay you a total of at Usd 10 , each day. This is enough to cover for gas and leave with little amount for a saving...

It is good to be in Africa.....plenty of opportunities for small investments, but only needing a new mind set and determination.

I will ber back to find out more

Excellent, This is the kind of stuff that reminds us that we all have the ability to become wealthy. It takes work, but it isn’t out of reach. Thanks for this post, and for everything you done here at Changing Your Thoughts!

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