My Wealth Tips #6 is all about trying harder to become wealthy!
All to often when it comes to wealth creation, the middle class group thinks that it’s all luck when it comes to generating wealth. Or that you have to be a top socially gifted, genius like Bill Gates to be able to create an incredible complex company like Microsoft to make you rich.
I’m here to say, it’s not so! For one, you don’t need the kind of money a Warren Buffett or Bill Gates has! For us normal middle class folks, we should just try to get to the level of wealth where our passive income (money from dividends, rents, etc), is a bit more than our expenses.
Now you might be thinking, how?
Well, luckily in the Yakezie blogging network, we have a few excellent examples! One such example is the blogger named Jeff at Deliver away Debt, who had obtained a massive amount of debt (over $100,000) but has been able to reduce his debt down to $50,000 in the time period of a year and a few months! Now you might wonder what was his amazing income stream that helped accomplish this? He delivered pizzas, and lived very frugally.
Wait, what does debt elimination have to do with wealth creation?
Well, let’s imagine that Jeff continues working side jobs and keeps his frugal ways after his debt is totally paid off. If he applied the same discipline, that would mean that he was able to save about $40,000 a year, so in a 10 year timeframe, he should be able to accumulate about 1/2 a million dollars if he were to earn a 7% interest yield!!!
| Amount | Interest | |||||
| Saved | Rate | Earnings | ||||
| $40,000 | 3.50% | $1,400 | ||||
| $81,400 | 7.00% | $4,298 | ||||
| $125,698 | 7.00% | $7,399 | ||||
| $173,097 | 7.00% | $10,717 | ||||
| $223,814 | 7.00% | $14,267 | ||||
| $278,081 | 7.00% | $18,066 | ||||
| $336,146 | 7.00% | $22,130 | ||||
| $398,276 | 7.00% | $26,479 | ||||
| $464,756 | 7.00% | $31,133 | ||||
| $535,889 | 7.00% | $36,112 | ||||
Not to shabby!!!
At Money Reasons, I’m trying to do exactly that. This is one of the main reasons I joined the Millionaire Club, I hope to have a net worth of 1 million dollars in 10 years!
So look for opportunities to become wealthier, even if they are small opportunities. If you go the extra mile like Jeff does above… you might just surprise yourself!
-MR
Completely agree with the work involved. I think we all to often are dismissive of the effort, planning, and purposefulness involved in building a fortune. They just don’t happen usually. Good luck with your journey!
Thanks, I blame part of the believe that it just happened on my media glorifying it.
I hope to step up my focus and attack it with new vigor.
Good luck on your goal Money Reasons! I think it is great that Jeff has worked so hard to get rid of his debts. If only everyone was so motivated, the country would not have nearly the amount of problems as it does.
Thanks Everyday Tips!
I think Jeff’s effort is and was incredible!
I think we all have become to relaxed on making money and just follow the paths that are well worn (not that this is bad in itself). I just think we should try other paths too (time permitting)…
My experience is this: Set a goal, make a plan, revise after set backs, and you will succeed. I know you will be reach your goal!
it’s all about smaller increments that compound over time. that said, i do strive for rainfalls as well to supplement and expedite the process. it is very well possible for me using internet based businesses. i start, establish then sell websites for a windfall, then simply rinse and repeat, all while living a financially responsible life
Time, interest, and living below our means make a great combination when it comes to wealth creation! You already have an understanding of that, so you’re well on your way!
Thanks, I hope so!!!
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