Seven Money Skills of Extremely Prosperous People
Why do some people earn 10 times more money in their lifetime than the rest of us? Do they work 10 times harder?
"People who are wealthy do not necessarily work harder to earn their money. They work smarter with the money they have," says Mark Victor Hansen, coauthor of "The One Minute Millionaire". "You, too, can be a millionaire if you take good care of your money and make good decisions with the money you have."
Hansen, coauthor of "Chicken Soup for the Soul," joined fellow best-selling author Robert G. Allen ("Nothing Down" and "Creating Wealth") to write "The One Minute Millionaire," a revolutionary approach to building wealth.
The bottom line is that wealthy people don’t necessarily work harder than the rest of us. They aren’t necessarily smarter either. Wealthy people are good at the seven following money skills, which anyone can learn.
- Value: Wealthy people value each dollar as a money seed. They know that a dollar can grow into a million dollars, so they’re respectful of every dollar they spend.
- Control: They control their money down to the last penny. Prosperous people take a few extra steps every time they spend money: 1) They shop for the best value, 2) They ask for and expect a discount, 3) They examine their receipt for mistakes, 4) They attempt to turn each expenditure into a legitimate, tax-deductible business expense, 5) They balance their checkbook to the penny, and 6) They file their receipts upon returning to their home or office. These habits take only a few extra minutes, but they help build long-term financial peace of mind.
- Save: Wealthy people love to save money by spending wisely, but they don’t stop there. They save at least 10% of what they earn.
- Invest: Wealthy people have a system for investing their money. Contact a reputable investment adviser to help you put your savings into different types of investments. The money should be automatically deducted from your bank account, so you never forget.
- Earn: Prosperous people have multiple streams of income outside their main job. "The One Minute Millionaire" is dedicated to showing you how to dramatically increase your earning power.
- Shield: Wealthy people protect themselves with trusts, corporations, limited partnerships, LLCs, and other legal entities. In truth, you don’t want to be a millionaire, you want to live like a millionaire but have only a few assets in your name.
- Share It: Wealthy people are very generous, donating at least 10% of their income. They understand that money multiplies fastest when it’s divided. When you share freely, you prime the pump of the universe. We encourage you to establish a legacy that will outlive you. Plant money trees from which others will harvest the fruit. This is true prosperity.
Voice of the Editor
Which isn’t completely true. I mean, occasionally I drop by when I manage to sneak out of the nonstop frat party over at Going Concern, but I’m mostly a wallflower over there. I’m happy to say that I’ve been given express permission (or explicit orders, if you like) to wander over here to AccountingWEB more often.
Why is that, you might ask? My job is to replace the irreplaceable Gail Perry as Editor-in-Chief. What does that mean? I don’t really know! I think it’ll be fun getting a feel for things, throwing in my own thoughts here and there, and listening to the discussions you’re having about the accounting profession.