Anyone Can Be Rich and Here's Why...and HOW
By Jim Bauer
@porwest (78761)
United States
July 24, 2022 10:51am CST
I spend time with people who have means. Wealthy people of course. And there are some things that are a common thread of sorts that I think might be helpful to anyone who wants to become wealthy may be interested in knowing.
Countless studies have shown that there is actually a blueprint to building wealth that almost almost all millionaires do that believe it or not...you already have. More on that in a bit.
Let's talk about a couple important facts about the rich that you may or may not already know.
Roughly 86% are self-made.
Almost all of them are savers. Not spenders. And when they do spend they are extremely frugal.
78% of self-made millionaires were poor or middle class. Only 22% came from wealth.
What's one main theme among the rich? They don't waste money. It's a simple thing, but it is true. The rich are more likely than the poor, for example, to use coupons. Yep. It's true.
Most millionaires believe it or not, shop at Walmart. Most of them in fact shop at many discount stores. And quite a lot of them even shop at thrift stores. Not surprising considering these are thrifty places for a frugal millionaire to shop and not waste money.
Millionaires also understand something fundamentally about wealth. It is hard to achieve, and it is NOT permanent. This further fuels their strong desire to save and invest and be frugal so that they can keep their wealth.
The vast majority of self-made millionaires didn't even achieve their wealth necessarily by starting businesses and they certainly did not inherit their wealth. They achieve this status through decades of frugal living and saving.
At the core of most of the philosophy of the self-made rich they will tell you almost every single time that, "It does not matter how much money you make. Instead, what you focus on is how much the future value of that money is if you invest it instead of spend it."
And of course, ultimately investing the money will eventually reward you with a better standard of living as money grows and grows faster the more of it you have. Millionaires tend to spend money earned from money already earned, and make it a personal commitment to never spend more than their money earns.
So, what is the one thing we all have? Opportunity. How that works out depends on whether we recognize it and whether or not we take advantage of it.
Having money is not about luck. It's not even about having a lot of money to begin with. It's not about having a high paying job and it does not depend on whether or not you have no kids or 6 kids.
Having money is about a lifestyle and a plan and a deep fundamental understanding of what the true value of money actually is. The sooner one realizes these things, the sooner they can achieve whatever money goals they wish to.
12 people like this
12 responses
@moffittjc (118442)
• Gainesville, Florida
24 Jul 22
I can't speak for Jim, but I live frugally, and I give generously to those in need. So both of those can go hand in hand. I believe we reap what we sow.
4 people like this
@moffittjc (118442)
• Gainesville, Florida
24 Jul 22
@Kandae11 It's a good belief system to have. We should all think that way.
3 people like this
@moffittjc (118442)
• Gainesville, Florida
24 Jul 22
I'm not a millionaire by any stretch of the imagination, but I will retire a millionaire. I sat down and looked at all my assets, including my 401k and 457 retirement accounts, my traditional and Roth IRA's, my lifelong pension, my investments, real estate and savings accounts, and all told there is well over a million dollars sitting there.
And you are so right about the opportunities before each and every one of us. Unfortunately, I didn't learn my lesson about saving and living frugally until later in life, so I've been playing catch-up. But I have set myself up to retire very comfortably.
I wanted my kids to learn their lessons early in life. As each of them hit the age of 18, they opened up retirement accounts and are contributing significant amounts of money to it. I told them if they invested at least a dollar a day from 18 until 65, they will retire millionaires. Both of them are contributing about 4 times that minimum amount.
My daughter will do well in life. She is a saver. She started working at the city where I worked as a summer camp counselor when she was 16. By the time she turned 20, she already had over $50k saved up in the bank. She paid cash for her car when she bought it. And other than that, she pretty much saves everything she earns.
My son struggles a little more with that, he loves to spend. Especially on his girlfriend. But at least I've got him saving for his retirement.
3 people like this
@moffittjc (118442)
• Gainesville, Florida
29 Oct 22
@porwest I like your approach to wealth. A ride wouldn't be fun or worth it if it was straight and smooth. What makes roller coasters so fun? The twists and turns and ups and downs. I know that's not the exact same as the investing world, but we do (or at least we should) learn from all those twists and turns and ups and downs along the way. I've made mistakes too. But overall it has helped me in the long run.
1 person likes this
@porwest (78761)
• United States
3 Nov 22
@moffittjc There is a word to describe your comment to suggest that the twist and turns and ups and down are what makes roller coasters so fun. It's the challenge. And the idea that despite all the twists and turns, so long as you are properly buckled in and the ride is well maintained, you will reach the finish line intact and ready for another ride.
1 person likes this
@porwest (78761)
• United States
28 Oct 22
What you described is the definition of a millionaire, so I think you are already there.
As for being money smart being a learning process, even though I was always "good" with money, I was not always "really good" with money. I ran into some hiccups along the way for sure. No doubt about it. I incurred bad debts and made some very poor investments early on.
They were still all useful things, though, in that it taught me a ton and I am not sure if I would have ever actually been able to achieve what I have been able to so far had these things not happened.
Becoming rich is a process, and it is not all about ups. It's a roller coaster ride with many whips and turns and winds and exciting highs and discouraging lows.
As I like to say often, getting rich is neither hard nor easy. You just have to be able to figure things out.
1 person likes this
@lovebuglena (43077)
• Staten Island, New York
25 Jul 22
What about celebrities? Are they actually frugal?
1 person likes this
@lovebuglena (43077)
• Staten Island, New York
28 Jul 22
@porwest Not everyone knows how to manage their finances.
1 person likes this
@porwest (78761)
• United States
29 Jul 22
@lovebuglena I think few people do. It's why we have so many people in this country who struggle with money. I have always said I think they need to teach it in schools.
1 person likes this
@porwest (78761)
• United States
28 Jul 22
Generally speaking, no. They are not. There are always exceptions to rules of course. Many people who come into wealth quickly, squander it. It is why many musicians, athletes, movie stars, lottery winners and so on tend to be more prone to lose their wealth.
Money itself is never the answer out of poverty, because becoming rich is not about money. It's about a mindset and an attitude.
1 person likes this
@kobesbuddy (74571)
• East Tawas, Michigan
24 Jul 22
I believe all this to be true, my parents and us kids never went without. Why? Because the income wasn't being spent, having a saving account was important to Mom. She handled the money, very wisely. Squandering money? Never!
1 person likes this
@kobesbuddy (74571)
• East Tawas, Michigan
24 Jul 22
@porwest Jay is a red hot spender, I constantly have to remind him, it's wrong. I'm constantly building up a savings, in my private business account. He was shocked, when I paid cash for a new computer, on two different occasions. When he ran short on bill money, I wrote him a check for $1,000 and everything was covered. After thirty years of wallowing in extreme debt, Jay is finally building up a saving account. Total CC debt at this time, a little over $300. It has taken Jay ten years, to get out of the CC trap. I'm very proud of how far he has come!
2 people like this
@porwest (78761)
• United States
28 Oct 22
@kobesbuddy It is always tougher to "balance the books" and make inroads if you have someone else in the household on board, and it is not always easy for everyone to put one person in charge of the finances, even though it is very wise to do it.
In our house, I am in complete charge of the money.
But at least you were quite able to beat the odds and make your own inroads. At the same time it looks like some of your ideas made their way into Jay's mind. Only $300 in CC debt is fantastic considering the level of debt so many people have gotten themselves into.
Onward and upward to you and congrats.
1 person likes this
@porwest (78761)
• United States
24 Jul 22
A wise woman, her, and a wise woman, you. Money is something to be held and appreciated and put to good use, and kept whenever possible.
I like to think of my saved dollars as little soldiers sent out to bring back more dollars for me to build up my army of finance. 
1 person likes this
@yoalldudes (35040)
• Philippines
31 Jul 22
I like reading your posts to keep motivated.
1 person likes this
@porwest (78761)
• United States
5 Nov 22
@yoalldudes Some people do use shopping as a way to please themselves, and it is without a doubt, a bad habit, and a costly one.
@yoalldudes (35040)
• Philippines
2 Nov 22
@porwest I also notice when one is happy and peaceful, one is less tempted to shop.
1 person likes this
@lifecoachjerusalem (1107)
• Israel
24 Jul 22
Make sure that you never go into debt. This is a hard and fast rule for everyone.
1 person likes this
@lovebuglena (43077)
• Staten Island, New York
25 Jul 22
@porwest If a person has a mortgage does that mean they are in debt?
1 person likes this
@porwest (78761)
• United States
28 Jul 22
@lovebuglena Yes and no. There is a big difference between a debt that controls a larger, appreciating asset, and one that controls a depreciating one.
There is good debt and bad debt, for example. A car loan is bad debt. A student loan is bad debt. A credit card is bad debt. A personal loan is generally a bad debt depending on what it is being used for.
Things that are good debt are debts to start a business, own a home, or leverage other investments because, generally speaking, these debts will pay for themselves in terms of the underlying thing growing in value, thereby making the true cost of the debt virtually zero.
1 person likes this
@LindaOHio (156157)
• United States
25 Jul 22
Yes, indeed. Although a family with 6 kids to put through college does not have as much of an opportunity to save as those without children. Would you agree? I think you will not.
1 person likes this
@porwest (78761)
• United States
13 Jan 23
Nope. I don't agree. Because money is not achieved through wages big or small, and is not hindered by life's challenges. It is made by having a deep understanding and knowledge about money.
If anyone were to ask what the secret it, that's the answer.
1 person likes this
@ihasaquestion (8274)
•
10 Aug 22
You are right. I've seen people driving Porsche and the likes and they still shop at dollar stores. Me thinks it is perfectly fine for sure.
1 person likes this
