The journey to being a self made millionaire is riddled with thorns, sweat, tears, heartbreaks, and lessons that threaten to lock you out of the Millionaires Club. However, would you believe me if I told you that there is a simple investment plan that can be mastered by even a 10-year-old, which calls only for a few minutes of your time each year and will make you a millionaire? There’s a catch though, this plan will require you to get rich slowly.
So here’s the strategy according to William J Berstin; at age of 25, start saving 15% of your income into three different mutual accounts. Such as government bonds, a 401(k) plan, or a fixed deposit account or all three. This way, by the time you retire, you will have outperformed 90% of active investors thanks to your savings and interest accrued.
However, there are little foxes that will always lead you astray to never actualize such a plan. Thus, for you to have a shot at joining the millionaires club, you must avoid these little yet deadly mistakes.
Cannot Maintain The Discipline To Get Rich Slowly
In the previous article, we had talked about how to be a millionaire while young enough to enjoy your dough? Trust me it is possible to be young and rich.
More often than not, wealth comes from the discipline of consistently saving and investing. Just like dieting, though it sounds simple, it is never easy.
You get fat because you choose to keep eating pizza and fries over fresh fruits and vegetables. Or because you slam yourself on the couch to catch a movie instead of going for a jog or the gym.
Investing and dieting are similar in the sense that, though you know what you need to do to hit your goals, discipline is always your stumbling block.
See: How To Stop Being a Couch Potato
You Spend A Little Too Much Money
Are you the type that goes for the trendiest clothes, Cancun vacations, buys the newest iPhone, or the fanciest car? Forget about those huge expenditures. In this day and age, little innocent expenditures may put a huge dent in your saving margin.
- A couple of unnecessary restaurant meals
- Shopping in upscale shops
- Renting a little too tony apartment
- An excessive cable package
- A too-rich private school for your kid
You actually don’t need some of these things and at times you are better off without them. As such, to get a step closer to join the Millionaires club you need to monitor your expenditure.
You Are Dumb! Dumb! About Personal Finance
It’s not your fault though; I know they don’t teach this at school. When you save and invest without having the grips of finance basics, it is like flying without understanding the basics of engine systems, aerodynamics, meteorology…a crash is bound to occur.
You do not need an MBA to master the art and science of finance. It is quite easy if you know where to look, and I happened to know just where here.
Failure To Understand The Markets
A new investor is often frustrated and disoriented by the turbulence in the market and the frequent economic crisis that cause it. A pilot not only needs to know how to fly a plane but also reads aircraft accident reports to avoid problems that may cause an accident.
Thus as an investor, you too need to understand the market so that you never get caught off guard. The good news is that there is nothing new under the sun when it comes to investments.
The only way is to achieve this is, to look at the history of the industry you are investing in and then plan and prepare for every scenario. With time, investing will start feeling like a movie you’ve already watched.
The best thing about this is that you will know every twist and turn, and even how it ends. This is the ultimate way to get Get Rich Slowly but sure.