Automatic Millionaire

From the Oprah Winfrey show telecasted on 7 Dec, 2005 at about 9am....in my own interpretation. There was a David something who is a financial guru...

Automatic Millionaire

1. Pay Yourself First

Always make it a point to pay yourself first when you receive your paychecks.

Do not be bothered by the piling bills and credit card companies who are stretching out their hands to tear away that cheque you are holding.

Make it a point to pay yourself for the every first hour of the day that you worked.

Eg. you are earning $2,000 a month. Working five days per week, hence 22 work days in a month. Daily wage is about $90.90, and for an 8-hour day, your first hour wage is $11. For 22 days you have worked in a month, you should pay yourself $242.

2. Make it automatic

Learn from your creditors.

The deduction from your bank every month is automatic, within clicks away.

Go now today to the bank and apply for interbank giro between your expenses account and your savings account.

Pay yourself bi-weekly.

Let the bank do the job and ta-dah, you have an extra income everymonth now.

3. Reduce the 'Latte' factor

Every now and then, we will just reach for a glass of latte, cappucino, fruit sherbie or a pot of tea! Let say we spend $3 per glass, and we drink 1 glass per day. It is a whooping $90 on latte per month!

What if it is not latte we drink? Bottle of water, or can drinks or cigarettes or sweets have the same effect.

This Latte factor refers to the wants in our life which are usually also the factors for drying up our expenses for our needs.

4. Get a roof over your head.

Whatever investment you plan to do, the first investment should be to get a property, a house for your own living. No point buying big cars, nice watches, branded bags and no roof over you.

(there are more... however, i was already late for work, and hence did not finish the show.. if anyone knows the subsequent methods, please let me know!)