Re: 8 Myths myths

I had a problem with that too. No doubt there are more millionaires, but of course! With inflation, which I believe averages about 3%/year on average, there would be more millionaires.

Karlin,
We are a debt society, that much is true. But, when I think over the reasons, I think that some of it is unavoidable, but the bulk of it is. Oftentimes, the capitalistic desire of having the newest, and hottest product with the most bells and whistles leads us down that debt path. I have seen studies that show that most millionaires (not the flashy Donald Trump/Hilton sisters) breed, but the average Joe millionaires drive old vehicles, live in modest homes, spend wisely and carefully. Granted, they had to have a sufficient salary to start (around $2500-3000/mo+), but not more than others who are loaded to the gills in debt.

There are multiple things that the successful individuals do to amass money instead of debt. One is systematically saving. Another is starting young (compounded interest). Avoid overpaying on loans with low interest rates and using the extra money to invest (conservative gain of 4-7% would be better than lowering payments on a 3% loan). Then there is the spending. Many people spend $100+ dollars on dining out during lunch. They go to a couple movies a month. They get their nails done professionally. They buy a new golf club when their old one is still sufficient. They get a new bathing suit each year... or a new coat. They follow trends. They buy stuff that they can't afford because it is "on sale," and they use their credit cards to do this. This slowly eats away at savings or discretionary income. I know that many people on curezone probably try to stay away from the 'buy new then fill the landfills with the old' mentality. But on average, consumerism runs this country and defeats its population. A smart individual is discriminating, will spend some money eating out or doing/getting something that adds fulfillment to their lives. Life should be enjoyable. But, when worries about money are always on the mind, that enjoyment is quickly eclipsed. Knowing where your money is going, tracking your debt reduction status, and slowly building a strong financial situation is something most are capable of. It's not easy, but for a huge percentage of the population, it is an option.

I wanted to make sure that you know that I didn't write this to be holier than thou by any means. It's just that people tend to get tunnel vision and have a hard way of seeing the end of the tunnel when it comes to financial troubles. I do this sometimes myself. But, I have no doubt that within a year or two, I will be completely debt-free - with the exception of my student loan, have a sufficient savings account, have some investments, and continue driving my old car and living in my modest home. I have included two links. One is a link to an investment information site that I like (Investopedia). I like playing 'the investing game' on that site, and there is some great information about the financial industry. The 'Armchair Millionaire' site is fairly basic, but it is a nice little reminder about how to go about saving for the future.

http://www.investopedia.com
http://www.armchairmillionaire.com