The 7 Top Ways Millionaires Become WealthyWritten by Steven Mattos
There are 7 common factors to those who build net fortunes of one million dollars or more. In America, there has never been more personal wealth than there is today; yet most American's are not wealthy. Amazingly, a mere 3.5% of our households own almost one-half of wealth in United States! Although we may be hard working, educated, moderate to high-income earners, why are so few of us affluent? In studying affluent, I found a pattern that wealthy follow. It is more often result of planning, hard work, perseverance, and self-discipline that determines who become wealthy. The factors compiled here are summarized from research done by Thomas Stanley Ph.D. on over 1100 actual millionaires (many are multi-millionaires) in U.S. today. You can do these! 1) Live Well Below Your Means Don't be fooled. The 'average' millionaire doesn't look like a millionaire! The key word here is frugal, frugal, and frugal. The typical person is America is a consumptionist. It's in our blood. We work hard, make money, and spend it well. Not typical millionaire! They play great defense (saving and investing) as well as offense (making money). Just like in football - great offense is exciting…but great defense wins games. An interesting note: Millionaires on average claimed their spouses were as frugal or more than they were. It's a family affair: Sacrifice high consumption today, for financial freedom tomorrow. 2) Spend Your Time, Energy, and Money in Ways that Build Wealth. Although road to Millionaire's Ville takes a frugal path, they pay well for training and advice. Do investment planning. Go to seminars. Hire good attorneys, tax accountants, mentors and coaches. Learn to identify and invest in assets that produce income. The wealthy spend money when investment will protect and grow their assets. Millionaires also know details: How much is spent each month and on food, clothing, and shelter. The non-wealthy say they don't have time to plan, while wealthy make time to plan. But here's shocker: The average millionaire spends 8.5 hours per month planning, while non-affluent spend 4.5 hours or less planning. How can 4 more hours per week impact your future? Make it happen and odds are in your favor of joining truly wealthy!3) Choose Financial Independence over Displaying High Social Status The wealthy run highly efficient operations both in business and at home. Most live in average neighborhoods, and drive average cars. They're not interested in keeping up with Jones' - because Jones' aren't financially free. It takes lots of energy to consume big mortgages, change homes every few years, buy most recent model cars, and wear latest fashions. The wealthy drive typically American made cars! Japanese cars come in 2nd place; half of these are Toyota Camrys. Yes, significant value per dollar is key here. The Millionaire's Motto: You aren't what you drive. The status cars - Lexus, BMW's, Mercedes? At 6.4% or less per each brand. 4) Don't Accept Economic Support from Your Parents once Outside Home Sounds painful doesn't it? It's a fact that has taught wealthy how to earn, keep, and invest money. Parents of wealthy do not, or cannot, provide "economic outpatient care". The results are clear: The more dollars adult children receive, fewer they accumulate. Those who are given less are motivated to accumulate more on their own merits. An amazing fact: 80% of millionaires are first generation millionaires; they have made their money on their own, in their lifetime. Many of these folks have been immigrants to U.S., starting out with minimal cash on hand. Work hard to learn and generate wealth-it CAN be done, and happens in America every day.
| | How To Audit-Proof Your Tax Return Forever!Written by Wayne M. Davies
Reprint Guidelines: ** Attention Ezine editors / Site owners ** Feel free to reprint this article in its entirety in your ezine or on your site so long as you leave all links in place, do not modify content and include my resource box as listed above.If you do use material, please send me an email so I can take a look: mailto:Wayne@YouSaveOnTaxes.com ============================================================ How To Audit-Proof Your Tax Return Forever! (My Recent Close Encounter Of The IRS-Kind) -- by Wayne M. Davies Copyright 2003 Wayne M. Davies Inc. ============================================================ Congress recently passed legislation that is supposed to result in a more "sensitive" Internal Revenue Service. You know, not such a lean, mean, tax-collecting machine. I DON'T THINK SO! Here's why. A few months ago, one of my clients (let's call him Mr. Jones) got one of those IRS "love letters" requesting more information about his return, and IRS wanted to meet with Mr. Jones in person to discuss situation (not a good sign!) Mr. Jones (a local small business owner) was required to show up at local IRS office with all his records. The IRS was questioning legitimacy of several business deductions -- and so IRS was doing what it is allowed by law to do -- demand that taxpayer prove that those deductions were valid. [By way, most IRS audits are done these days by mail. Humans are rarely involved in these so-called "correspondence audits." Those big IRS computers can check and cross-check all kinds of information that should be reported on your tax return. And if something doesn't show up on return that is easily tracked by IRS computers, then computer just spits out a not-so-friendly "discrepancy notice", which you can respond to via mail.] Turns out that Mr. Jones lost audit and ended up owing IRS a significant amount of money -- additional tax, plus penalty and interest for late payment of that tax. Why did Mr. Jones' lose audit? Mr. Jones made two "classic" taxpayer mistakes: MISTAKE #1: "NO RECEIPT, NO DEDUCTION" Mr. Jones lost several deductions simply because he didn't have proper documentation to prove deductions. What do I mean by "documentation"? Well, if IRS requires you to substantiate a deduction on your tax return, you must be able to provide written proof that deduction really happened. The easiest way to prove a deduction is to hang on to: a) The receipt or invoice, and b) Proof of payment, which can be a canceled check, cash receipt, or credit card statement. Mr. Jones reported numerous deductions for which he simply didn't have documentation. No receipts, no canceled checks, no nothing. Turns out that Mr. Jones was one of those "cash guys". Do you know what I mean by a "cash guy"? Maybe you know what kind of guy I'm talking about -- He never wrote a check in his life, just carried a wad of cash around in his pocket. He paid for everything with cash, and never kept any of his receipts.
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