The $500 Millionaire has always told me that he can teach me how to make money but he can not teach me how to keep money. Why is that? It used to be thought of as responsible to save, but today spending is encouraged. If you are like me, it makes no sense to think we are encouraged to spend more than to save, but when doing a bit of research it is clear that spending instead of saving is quite common.

Think about where our country is today. We are on a spending spree. I am not just talking about the government…I am talking about the citizens. Both businesses and people get tax benefits on select purchases. We inflate the economy so people will spend. It is expected that we spend the money we make.

The $500 Millionaire has engraved in my head that I MUST first pay myself 10% of every dollar I make. Here are some philosophies. You can pick which fits you best:

Poor Mans Mindset- Spend FIRST, Invest the rest

Wealthy mans Mindset- Invest FIRST, Spend the rest

Here is how the $500 Millionaire suggests to save and invest.

1. First you will need to create a budget and find out what your monthly expenses are.

2. Take a minimum of 10% of your take home income and create an emergency fund that is a minimum of 6 months of your monthly budget. (I suggest 12 months)

3. Give 10% of your take home income to charity and others.

4. Give 5% of your take home income to investments in the form of passive investments- Passive Investments are when you invest in something or someone else who will do the work for you so that you can make a return on your investment (Stocks, Bonds, Mutual Funds, Businesses)

5. Use 5% of your take home income to investment in active investments (Your own Business, something you can use to make more money in whatever field you are in)

6. Once you have 6-12 months of the emergency fund, you then move your investment levels to 10% each.

This might seem crazy but I am actually suggesting you save 30-40% of everything you earn. What else do you plan on spending your money on? Why work so hard for money when you can make your money work for you? The key to this program is using percentages. This way it will not matter how much you make. If you make $20k or $100k a year, you can still save. By saving 30-40% you can then spend up to 60% on whatever you would like.

According to the $500 Millionaire, you do not have to be a millionaire to live like one. I know many people who make $100k+ a year but spend more than they make. At the end of the year, they actually lose money. Understand that wages bring you a check but profits brings you wealth. Again it is not about how much money you bring in, it is about how much money you keep. I would rather make $50k and save 10% than make $200k and spend all of it.

Remember, if you save, you will be able to live a “wealthy” life meaning you will not have to worry about money. Saving is what will get you out of the rat race. Life is much easier when you have enough money to pay for a full year’s living expense. It might take some time to save this much, but it will happen if you continue saving. The bad times in life, which are inevitable, are much easier to manage when you are not in panic mode over money. Savings keeps you out of panic mode. If you do not believe the $500 Millionaire, please feel free to try this strategy and let me know in one year from now how good it feels to have cash on hand…


About 500dollarmillionaire

Welcome to one of the most interesting challenges I have ever been given in my life. I am here to talk to you about the $500 Millionaire. The $500 Millionaire wants me to blog to you about how the $500 Millionaire became a millionaire from basically nothing. He wants me to give tips to people who want to live like Millionaires. One myth that the $500 Millionaire would like me to discuss and de-bunk is the people become successful because they have money. There are Millions of ways to go from nothing to something and this is geared towards helping people who want to better them self and become a $500 Millionaire. If you would like money to never be an issue again, then the one thing you can not afford missing is following this blog. The $500 Millionaire will help me address any questions you might have and give you a $500 Millionaire answer. You can ask anything from how to make money, how to save money, how to live like millionaire. Nothing is off limits and the $500 Millionaire will address any issue. These are all things that we will be able to answer and show you. The $500 Millionaire has created millions with less than $500 in some business and can show you how. View all posts by 500dollarmillionaire

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