Simple Steps To Retire A Millionaire

I got this article from my officemate.  Seems so easy to retire as millionaire ;).  Read on.

1.   SET THE GOAL

Nobody plans to fail, but plenty of people fail to plan. Saving money is a basic concept of personal financial planning, and key to financial success. Yet many of us don't have a formal savings plan. Without such a plan, the chances of ever saving enough money to meet long-term financial goals or achieve financial security are very slim. Having a million-dollar portfolio is a retirement dream for many people. Making that dream come true requires some serious effort.

2.   START SAVING

If you don't save, you'll never reach your goal. As obvious as this might seems, far too many people never even start to save. Finding the cash to stash may be a challenge, particularly when you're young, but don't let that stop you from pursuing future riches.

3. START SAVING EARLY

 Remember that a little goes a long way. Don't think you have enough money to start investing? You can get into a good savings plan as low as 2000 monthly or 1500 can be arranged.

That's why, when you're young, you need to invest fairly aggressively. You should invest nearly all your money in stocks/equities (as opposed to bonds and conservative investments) in hopes of netting a bigger return. You'll certainly have ups and downs, but over the long-term, TIME (again, your best friend) will smooth them out for your benefit.

Bottom line: Getting rich is easier and more painless the earlier you start!

4. GET AGRESSIVE

Studies have shown that the majority of the returns generated by an investment are dictated by the asset-allocation decision. If you are looking to grow your wealth over time, fixed-income investments aren't likely to get the job done, and inflation can take a big chunk out of your savings.

Investing in equities entails more risk, but is also statistically likely to lead to greater returns. For many of us, it's a risk we have to take if want to see our wealth grow.

5.  PREPARE FOR RAINY DAYS

Part of long-term planning involves accepting the idea that setbacks will occur. If you are not prepared, these setbacks can put a stop to your savings efforts. While you can't avoid all of the bumps in the road, you can prepare in advance to mitigate the damage they can do.

6. SAVE MORE

Your income should rise as time passes. You'll get raises, you'll change jobs, and maybe you'll get married and become a two-income family. Every time more cash comes in to your pocket, you should increase the amount that you save. The key to reaching your goal as quickly as possible is to save as much as you can.

7. WATCH YOUR SPENDING

Vacations, car, kids and all of life's other expenses take a big chunk out of your paycheck. To maximize your savings, you need to minimize your spending. Buying a home you can afford and living a lifestyle that is below your means and not funded by credit cards are all necessities if you want to boost your savings.

8. MAX OUT YOUR OPTIONS

Take advantage of every savings opportunity that comes your way. . Don't let any chance to save get away.

9. HAVE  PATIENCE

"Get-rich-quick" schemes are usually just that - schemes. The power of compounding takes time, so invest early, invest often and accept that the road to riches is often long and slow. With that in mind, the sooner you get started, the better your odds of achieving your goals.

10. LEAVE IT ALONE

 The prospect of making a lot of money without doing anything sounds good on paper. But, admittedly, in practice, it can be maddening. Every time you receive your account statement, you watch your balance s-l-o-w-l-y inch up -- or even drop. How on earth are you ever going to get rich at this pace?

Good things come to those who wait. You must be patient for compounding to work its awesome power. Remember that as your money earns more, it'll earn even more. You certainly won't get rich overnight this way. But you will get rich if you start young, invest wisely and leave it alone.

THE REALITY OF RETIREMENT

Retirement might seem far away, but when it arrives nobody ever complains about having too much money. Some people even question whether a million dollars/peso is enough.

That said, with lots of planning and discipline, you can reach your retirement goals and live a comfortable life after work.