The 10 Golden Rules to Becoming a Millionaire
// THREAD
// THREAD
1. Never ever spend more than you make
Building wealth is simple math
Spend more than you earn and your net worth is only going to go in one direction - down!
Earn more than you spend, and prioritize increasing that gap as much as possible
Invest the difference in assets...
Building wealth is simple math
Spend more than you earn and your net worth is only going to go in one direction - down!
Earn more than you spend, and prioritize increasing that gap as much as possible
Invest the difference in assets...
And your net worth, over time, will compound beautifully.
If your current income is not enough to achieve this, consider starting a side hustle.
Something as simple as affiliate marketing can bring in a few $100 extra every week and won't cost much to start
If your current income is not enough to achieve this, consider starting a side hustle.
Something as simple as affiliate marketing can bring in a few $100 extra every week and won't cost much to start
2. Stay out of debt!
In today's world, debt seems to be a normal part of everyone's life
Bottom line: paying more to borrow someone else's money will make you poorer.
There are only two situations in which you should borrow...
In today's world, debt seems to be a normal part of everyone's life
Bottom line: paying more to borrow someone else's money will make you poorer.
There are only two situations in which you should borrow...
- To survive (as an absolute last resort)
- When you'll earn more on what you're financing than you will be charged in interest
Unless it's going to make your richer, don't do it
- When you'll earn more on what you're financing than you will be charged in interest
Unless it's going to make your richer, don't do it
3. Be greedy when others are fearful, and fearful when others are greedy
This famous quote from Mr. Buffett is timeless
And absolutely key when it comes to multiplying your wealth in the stock market.
Bottom line: you get richer by buying when no one else will
Cont
This famous quote from Mr. Buffett is timeless
And absolutely key when it comes to multiplying your wealth in the stock market.
Bottom line: you get richer by buying when no one else will
Cont
Buy when everyone is freaking out about high unemployment, interest rates and the market is tanking
The cyclical nature of the economy ensures bad times will occur
And human nature ensures that when they do, people will panic and sell at a loss
To build wealth...
The cyclical nature of the economy ensures bad times will occur
And human nature ensures that when they do, people will panic and sell at a loss
To build wealth...
You must learn to see these downturns as your opportunity
If you truly think the world is going to end, you have bigger things to worry about than money. Go buy some tinned food and a weapon.
If it's not that bad, buy stocks and hold.
If you truly think the world is going to end, you have bigger things to worry about than money. Go buy some tinned food and a weapon.
If it's not that bad, buy stocks and hold.
4. Looking rich is not being wealthy
Most people who are really wealthy often don't look like it
They don't need to.
Bottom line: Funneling your investible cash into shiny objects & designer clothes might make you look rich now, but will stop becoming really wealthy later
Most people who are really wealthy often don't look like it
They don't need to.
Bottom line: Funneling your investible cash into shiny objects & designer clothes might make you look rich now, but will stop becoming really wealthy later
5. Live for today, but invest like you'll live forever
It's true - you never know what tomorrow will bring
So, live for today. But also, put something aside so you can continue making the most of the many more tomorrows to come.
You won't regret it.
It's true - you never know what tomorrow will bring
So, live for today. But also, put something aside so you can continue making the most of the many more tomorrows to come.
You won't regret it.
6. The 6 ways of getting rich
1. Marry money
2. Inherit money
3. Exploit a unique talent
4. Get really lucky!
5. Own or lead a successful business
6. Spend less than you make & invest the difference over the long term
Make number 6 a constant, and you'll do well
1. Marry money
2. Inherit money
3. Exploit a unique talent
4. Get really lucky!
5. Own or lead a successful business
6. Spend less than you make & invest the difference over the long term
Make number 6 a constant, and you'll do well
7. Taking no risk is the biggest risk of all
Nothing worthwhile in life ever comes from being risk-averse
When it comes to money, the same rule applies. To multiply your money, you need to invest in things that can go down, as well as up.
The trick is to take measured risks...
Nothing worthwhile in life ever comes from being risk-averse
When it comes to money, the same rule applies. To multiply your money, you need to invest in things that can go down, as well as up.
The trick is to take measured risks...
You do this by mitigating the risks that you face
Example: Stocks may go down in the short term. But if you mitigate this risk by doing your research, buying right and holding for the long term, your chances of a positive return grow every year.
Follow @TheStockGroup for help
Example: Stocks may go down in the short term. But if you mitigate this risk by doing your research, buying right and holding for the long term, your chances of a positive return grow every year.
Follow @TheStockGroup for help
@TheStockGroup 8. Take responsibility for yourself
Money isn't brain surgery - in the literal sense if you need brain surgery you have little choice but to hand over your trust to the surgeon.
With your money though, don't ever turn over complete control to anyone.
You can figure it out...
Money isn't brain surgery - in the literal sense if you need brain surgery you have little choice but to hand over your trust to the surgeon.
With your money though, don't ever turn over complete control to anyone.
You can figure it out...
@TheStockGroup Whether you want to learn about debt elimination, investing, or anything else money related
There are online resources everywhere that can help you
See the link in my bio for my own resources, created to help you achieve all of your financial goals
There are online resources everywhere that can help you
See the link in my bio for my own resources, created to help you achieve all of your financial goals
@TheStockGroup 9. Sometimes, less is more
Particularly when it comes to information regarding stocks, the market and the wider economy
If you're always listening to spectators and reacting to pundits and short term market fluctuations, you'll end up selling before you should
Cont
Particularly when it comes to information regarding stocks, the market and the wider economy
If you're always listening to spectators and reacting to pundits and short term market fluctuations, you'll end up selling before you should
Cont
@TheStockGroup Instead
Buy into high-quality stocks and hold them for the long term
The only reason to sell is when the fundamentals on which your bullish thesis was based break down
Not because the stock price dropped 20% that day
Bottom line: ignore the noise
Buy into high-quality stocks and hold them for the long term
The only reason to sell is when the fundamentals on which your bullish thesis was based break down
Not because the stock price dropped 20% that day
Bottom line: ignore the noise
@TheStockGroup 10. Money is time, not the other way around
Time is the one nonrenewable resource you have
So, you want to spend as much of the time you have doing the things you want to do rather than spending all your time working for other people doing stuff you have to do
Cont
Time is the one nonrenewable resource you have
So, you want to spend as much of the time you have doing the things you want to do rather than spending all your time working for other people doing stuff you have to do
Cont
@TheStockGroup Money is the resource that will enable you to do this
Everything you buy has an opportunity cost:
- Buy a $200 pair of jeans, and that's $200 you could have invested
Compounded at 12% for 30 years in the stock market, that could have become $6,000
Why does this matter?
Cont
Everything you buy has an opportunity cost:
- Buy a $200 pair of jeans, and that's $200 you could have invested
Compounded at 12% for 30 years in the stock market, that could have become $6,000
Why does this matter?
Cont
@TheStockGroup Ignoring inflation, and assuming you can live on $3K/month, those clothes have cost you 2 months of early retirement
Make conscious decisions with your long-term goals in mind and avoid unnecessary expenses that don't add value
Bottom line: Stuff today or time tomorrow
Make conscious decisions with your long-term goals in mind and avoid unnecessary expenses that don't add value
Bottom line: Stuff today or time tomorrow
@TheStockGroup Those who choose the latter will be the millionaires of tomorrow
The choice is yours.
To see how I'm managing my money and tracking my way to millionaire status, see my pinned tweet 👇
The choice is yours.
To see how I'm managing my money and tracking my way to millionaire status, see my pinned tweet 👇
@TheStockGroup If you found this helpful, please:
- Retweet the original tweet
- Follow @FiSavvy
I'll show you how to manage & invest your money to make your 9-5 optional
- Retweet the original tweet
- Follow @FiSavvy
I'll show you how to manage & invest your money to make your 9-5 optional
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