Friday, 10 June 2011

The Automatic Millionaire

The secret to building wealth by becoming an automatic millionaire is to make sure that you always pay yourself first. The most important financial habit that you can develop is paying yourself first. Once you make the decision to stick with it, you will be glad you did.

Just what is meant by paying yourself first? Paying yourself first simply means that for every dollar that you gain the first person to benefit from it is you. If everyone who wanted to become financially free practiced paying himself or herself first, lives all over the world would change for good.

The best way to ensure that you are paying yourself first is to open up your own savings account for retirement. Starting a retirement account may seem like the slowest and most boring way to accumulate wealth, but it really works.

For someone who normally works forty hours a week, the formula to retire as middle class is to save one hour’s pay every day for the rest of your life. If middle class is not good enough for you, you need to focus on saving a little more than one-hour’s pay per day. To retire wealthy, you need to save a minimum of two and a half hour’s pay every day. For many, this means working overtime week after week or investing in additional work at home.

For example, imagine an employee who makes about N25 per hour. If he or she saves an hour’s pay five days a week, fifty weeks every year, they will save N6,250 every year. Depending on the interest rate you get with your savings account, in forty years you could accumulate between N700,000 and N3,000,000.
You must begin saving money as soon as you enter the work force, especially if you have hopes to retire early. In addition, it is important to search for the best interest rates you can find in order to grow your wealth   to the fullest.

Thus, learn how to save a portion of every income that comes your way, it's the secret to becoming financially independent.

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