Saving money is the first component in your plan to become a millionaire. It's an incredibly powerful tool - so powerful that there are many for whom it's virtually the only tool they use and need. Hard to believe? I'll soon show you what I mean! Before that, though, a few more words about the great powers of saving.
The real power of saving money comes from two sources. First, it's something available for everyone. No matter how much or little you earn, you can save part of it. Yes, true, it's a lot easier - at least in theory - to save a lot when you make a lot. However, we'll show you why this matters much less than most people think and how you'll be able to save even with modest incomes.
The second source for the power of saving money is in compound interest - i.e. interests that accumulate over longer periods of time. Even rather small interest results in impressive growth when given enough time. We'll discuss the details of this and show you why compound interest will really make a difference. We'll demonstrate it's impact both on your ability of save money and on the fruits of your saving efforts.
There are two different angles from which to look at the ways to save money. First, the tools angle - setting budgets, planning and tracking your spending, etc. - will help you to set a framework for your saving. Then, the tips to save money angle - how to manage with your income and live below your means, how to cut without too much pain, and so on - will help you to get the job done. We will show you the way both to selecting the right tools and finding the tips to put together your savings plan. We aim to make your way of managing your household finance the second corner stone (your million dollar dream was the first one, remember?) - of your journey to become a millionaire.
Saving money is not easy as it may sound - many people find it actually very hard. Giving up something today in order to gain something tomorrow takes discipline and motivation. Many believe - or at least hope - that sometime in future they'll just have so much income that they will get rich without any need to save. Some others think there is just no way - with their income and needs it's simply not possible to save anything. Yet, saving is both necessary and possible for all aspiring millionaires, and we'll show you how to find the motivation for it.
Debt, loans, and leverage is a topic closely related to savings. While saving takes place in advance - you can use the money only once you've saved it - debt enables you to save afterwards: you first use the money and only then save it (in order to eventually pay it back to the lender). Of course this comes with an added cost and risks - big or small. Many sources have a very simply approach to debt: they will tell you to avoid any. Our approach is more nuanced - we will show you how to manage the risks related to debts and how to use debt for your benefit in a controlled, sensible manner and scale.