Watch Me Become A Millionaire

I make it a point to incorporate the expression “a dollar saved is a dollar earned” into my life.  There are many great opportunities everywhere to save money if one is only to look.  For example, I make it a point to get coupon codes for any items I buy online.  Three such sites that I check for coupon codes or rebates are www.coolinmyopinion.com, www.comparebeforepurchase.com and www.rebateandcoupon.com.

Why pay more for the same item when, just by doing a few minutes of research, you can save tens or even hundreds of dollars? Achieving financial independence involves the wise use of one’s money; One such wise use is not paying more than you have to.

I will be the first person to admit that I will occasionally go and spend around $4 for a latte at a coffee place.  In order for me to achieve my ultimate goal of financial independence, I have to curtail this activity somewhat.  But again, going to extremes on any matter is usually, in my opinion, not a productive thing to do.

Instead of cutting out going to coffee shops entirely, I will limit myself to getting a coffee on a special occasion - Say, on the Friday at the end of a work week in the evening, and maybe one more on the weekend.  To those who buy 3-5 coffees a day, this may sound absurd - But I was one of those people who would buy 3 or 4 lattes in one day.  4 lattes! That’s around $16! Multiply $16 by 365 days and you’re spending $5840 a year.. on coffee!

That’s the same coffee you can make at home! Yeah, I know - “It’s the ambiance“. I’m not paying $5840 a year for that ambiance anymore.  A latte here and there is okay for me - But not 3-4 a day.

Look at it this way; With all of the money you save not spending on lattes, you can actually buy stock with the coffee company instead.

Ever hear someone go on and on about how wealthy they are? Or perhaps they like to show off their wealth with their expensive car or expensive clothes? The truth, I am discovering, is that many financially independent people are ones who you would least expect to be wealthy. They simply do not have a need to show off their wealth and brandish it around for all to see. No, they quietly and wisely accumulate wealth, not wasting precious dollars on fancy, expensive items.

Time and time again, I am surprised by those who are truly wealthy and those who would have you believe they are, but are just putting on a show. The wisdom of those who are more quiet about their success becomes apparent when you observe their actions. Would they rather put their wealth into a $90k car to show to the world, or perhaps the money would be better spent elsewhere – Such as in a real estate investment or mutual funds?

A fascinating book that touches on this topic is The Millionaire Next Door. For example, on page 40, authors Thomas J. Stanley and William D. Danko state “They [The Affluent] became millionaires by budgeting and controlling expenses, and they maintain their affluent status the same way.” I find this statement to be right on the money so to speak, looking back at my own actions in the past. The me of yesteryear would spend, spend, spend! Although different people have different fancies, my particular one was spending money on new musical equipment, only to resell it at half the price or less at a later date. Not only was this not financially wise, but it was also a profound waste of time.

I have just finished reading this book and have gained very valuable insights as to those who are financially independent. I will share more of what I have learned from this book in the articles to come.

I, like many people, have learned the hard way about the pitfalls of credit cards. The convenience and ease of use is what makes credit cards so financially dangerous. It is always easier to swipe that expensive dinner or big purchase on a credit card.

I have noticed that when I pay cash for a purchase, I am much more financially conscious of my actions. When using cash, I more frequently ask myself questions like, “Are you sure you can afford to by this now?”, “Isn’t this a bit too pricey?”, “Wouldn’t you rather save your money?”

When you are forced to open your wallet and physically take out the ten, twenty, or hundred dollar bills to pay for a purchase, you quickly become very financially conscious. You tend to spend less and save more.

Once I have paid off all of my credit cards, all of them except for one are going into the shredder. The one that I will keep will not be carried with me either; It will be left at home. I am even questioning whether I will keep the remaining card, since a debit card has all of the benefits of a credit card without the risks.

Consumer debt is the biggest obstacle to achieving financial independence. I have made my share of mistakes - Costly mistakes which I am now working hard to pay off.

A good friend of mine pointed out that he did not necessarily agree with my previous article. He mentioned that “investing”, rather than just saving would be the key to eventual wealth. He is in fact quite correct. However, let me clarify what I meant to by using the word “savng”.

All too often, we get a paycheck and spend. Worst yet, we will use our credit cards to borrow against future earnings. The “saving” I am referring to here is the opposite of spending - In other words, once you make the money, save it! Then, at the point where you have a sum of money, investing comes in. I will talk about my past and future investment choices, namely real estate, in the coming articles.

As I study those who have achieved financial independence more and more, I am coming to the conclusion that it is not necessarily how much a person makes, but how much that person saves which ultimately determines if that person will have a chance at becoming financially independent.

I will apply this principle in my quest to become a millionaire.  In the coming days, I will outline some of the strategies I will undertake to save money rather than spend it.

Hello and welcome to WatchMeBecomeAMillionaire.com.

As someone who has a very strong interest in finance and becoming financially independent in the near future, I have decided to put up a blog to track my progress from being poor to attaining considerable wealth.

I do not have any plans of taking part in any get rich quick schemes - No, this is going to take hard work, determination, dedication and a desire to constantly learn and apply this knowledge.

Before we begin, I will tell you a little bit about myself:

I am in my early thirties and work as a computer consultant (i.e. a fancy title for someone who fixes peoples’ desktop PCs when they are not working). I currently do not own any real estate (Although I have in the past - We will get into that topic at a later date).

My primary “operating principle” will be - “Attain wealth by being frugal”.

My first and foremost goal - Get out of consumer debt (Currently approximately 20k in credit card debt).

Come and join me on my journey!