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Automatic wealth The 6 steps to financial independence - Masreson M.

Masreson M. Automatic wealth The 6 steps to financial independence - Wiley & sons , 2005. - 291 p.
ISBN 0-471-71027
Download (direct link): automaticwealththesixstepsto2005.pdf
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5. They are moderate in their spending.
6. They are extraordinary in their saving.
7. They pay themselves first.
8. They count their money.
Step 3: Develop Wealthy Habits 77
This is not everything you’ll need to know about wealth building. We will discuss other important secrets in later chapters. For the moment, though, we are talking about developing wealthy habits. These eight are my recommendations.
The average multimillionaire works an average of 59 hours a week. And many of those hours are challenging.
But you don’t want to hear that now. And I don’t want you to think about it.
Think about this instead: If you follow the advice in this book about transforming the way you work, the job you do, and the way you think about work, those 59 hours will fly by.
And there’s more good news. Many of those hours won’t feel like work. You’ll actually enjoy them.
And after you’ve hit your first million or two, you can kick back and work less ... if you want to. But you may not want to!
Some people get lucky and stumble into riches. But master wealth builders—people who can create wealth easily and repeatedly—don’t rely on luck. They are good at what they do.
Being good at what they do gives them confidence and poise. In discussing business or money, they are relaxed but focused. Intolerant of fakers, they move quickly when opportunity knocks.
You can tell when you are in the presence of natural wealth builders. There is something palpable in the way they hold themselves and the way they speak. It’s more relaxed than tense and more flexible than fixed. Natural wealth builders have the confidence to know that they know. They’ve done it and they can do it again.
It all comes down to mastering a financially valued skill. I’ll explain what that means and how it should fit into your wealth-building goals in the next chapter.
Natural moneymakers make most of their money by practicing a single skill within the context of a single industry. Don’t be fooled by financial gurus who tell you otherwise. But they eventually develop many streams of income. And I’m going to argue that you should do the same thing.
To get your financial fortune started, you have to radically boost your income. And doing that, as I’ll explain in the first part of the next chapter, requires doing one thing extraordinarily well.
In the second part of Step Four, we will talk about many ways that you can supplement your primary income. I’ll show you how to start small and develop extra little streams of cash that happily float into your bank account every month and build up your wealth reserve.
Many master wealth builders I know enjoy a dozen sources of income. Some are modest, some amazing. That’s the great thing about creating cash flow. Although you never know what will happen with any individual income source, if you get enough of them started, one will turn into a river.
How much do you think the typical American worth $6.8 million typically pays for a house?
I put this question to the Early to Rise staff. Their guess was between $2 million and $3 million. Being older and wiser, my guess was closer to the truth. I figured the number was closer to $1 million.
But then we checked the IRS records. And the answer was an astonishing $545,000. That’s not a lot of money for someone who’s worth almost $7 million. So what’s going on here?
Take a look at Table 3.1. Why would a guy who’s worth $1.4 million live in a $220,000 house? Does he know something that you should find out about?
Step 3: Develop Wealthy Habits 79
$1 to under 2.5 $1,470,553 $220,796
2.5 to under 5 3,392,416 354,043
5 to under 10 6,809,409 545,499
10 to under 20 14,045,501 779,444
20 and more 58,229,024 1,073,980
Actually, he knows two things:
1. The cost of your house determines the cost of your lifestyle. Consider this: Property taxes on a $500,000 house are about $4,000 to $5,000 more per year than on a $250,000 house. Utility expenses are also proportionately greater. If you live in a more expensive house, you’ll pay a lot more for maintenance costs. And not just because there is more house to keep. When many contractors see that you live in a nice house in a fancy neighborhood, their fees shoot up. Call it a wealth tax. They figure, “He can afford it. I need it. So why not?”
But taxes, utilities, and maintenance form just the tip of the expense-rising iceberg. The major cost of owning an expensive house is beneath the surface. The number one reason expensive homes cost so much (much more than you’d think) is because they are inexorably attached to a more expensive lifestyle. By lifestyle, I include everything you pay more for now that you live in a nicer neighborhood—furniture and landscaping, automobiles and education, restaurants and vacations, just to name a few.
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