How to Become a Millionaire

George Samuel Clason wrote a book called the richest man in Babylon in 1926. This book became a worldwide bestseller, sold millions and millions of copies in every language, and has one basic principle: pay yourself first. That means you will save and invest at least 10 percent of your income throughout your working life. Take 10 percent of your income off the top of your paycheck each time you receive one. Pay yourself first and put it into a particular account for financial accumulation.

Far from it. Do you not pay the garment maker? Do you not pay the cobbler? Do you not pay for the things that you eat?

What have you to show for your earnings of the past month? What for the past year?

You paid to everyone but not to yourself.

It's a powerful analogy to see every expense you have as you are slaving for someone else.

The fact is that if you save just one hundred dollars per month throughout your working lifetime and you invest that money in an average mutual fund that grows at 8 to 10 percent per annum, you will be worth more than 1 million dollars by the time you retire.

Saving is not Easy

Developing a lifelong habit of saving and investing your money is not easy, and it requires tremendous determination and willpower.

You have to set it down as a goal.

You have to write it out.

You have to make a plan.

You have to work on it all the time.

But once this practice locks in and becomes automatic, your financial success is virtually guaranteed.

How to Practice Frugality

The key for you is to practice frugality. Frugality in all things, be very careful with every penny, especially at the beginning of your working life. Question every expenditure. Delay or defer essential buying decisions for at least a week, if not a month. The longer you put off making a buying decision, the better your decision will be and the better price you will get at that time.

Why People Retire Poor

A significant reason that people retire poor is because of impulsive buying. They see something they like and buy it with very little thought. They become victims of Parkinson's law, which says that expenses rise to meet income. It means that no matter how much you earn, you tend to spend that much and a little bit more. As a result, you never get ahead and never get out of debt. Your job is to break Parkinson's law. You don't have to be a victim of Parkinson's law.

Breaking the Parkinson's Law

If you cannot save 10 percent of your income, start today by saving one percent of your income in a special savings and investment account. Put it away at the beginning of each month, even before you begin paying down your debts. Learn to live on the other 99 percent of your income. As you become comfortable living on 99 percent, raise your savings goals to two percent and live on 98 percent. Later 3% and 4% and so on. Within one year, you'll be saving 10% and maybe even 15 or 20 percent of your income and living comfortably off balance.

At the same time, your savings and investment account will start to grow. You'll become more careful about your expenditures, and miraculously, your debts will begin to be paid off one after the other. Within a year of starting saving 1% a month, your entire financial life will be under your control, and you will be on your way to becoming a self-made millionaire.

The Goddess of Luck Favors Men of Action

Let's say a procrastinator and a doer faced with the same amount of opportunities. However, what separates them is the number of options they try out.

The procrastinator will always come up with excuses.

I don't feel good today.

I had a rough day at work.

Nope, the stars are not aligned today!

Meanwhile, the doer tries it out and takes many of his opportunities. Therefore, the chances that the doer will be lucky and succeed at some point are way higher than that of the procrastinator. But it has nothing to do with luck and everything to do with action.??

The Power of Passive Income

Once you start to obey rule number one - pay yourself first - you will accumulate much cash over time. While this will feel good all on its own, there's something even better to come. It would be best if you started to put your hard-earned money to work as soon as possible. The good thing about money is that it never has to rest, unlike yourself. Your money will work for you while you go to class, while you hang out at the gym, and even while you're sleeping. It's modern-day slavery, and best of all, it's a hundred percent legal. It is what people like to refer to as passive income. If you decide to keep your slaves, they will breed. Even the kids will generate eventually. It will cause your money to grow exponentially. The good thing about exponentials is that they multiply over time, and earning cash becomes more manageable and more accessible, and easier.

Conclusion

Now, this process has worked for everyone, including tens of millions of people who read and applied the idea from Clason's richest man in Babylon. Try it for yourself. Open a particular account for financial accumulation today. Make a deposit in the bank account, even five or ten dollars no matter how small this starts to set up a force field energy that will attract more money. Then look for every opportunity to add to this account and begin to study money to understand how to make it grow. Read books and magazines by experts on the subject of money. Never stop saving and learning and growing until you become financially independent.??