The 5 Lessons a Millionaire Taught Me about Life and Wealth by Richard

LIFE AND WEALTH 6

The5 Lessons a Millionaire Taught Me about Life and Wealth by RichardPaul Evans

Lessonone: Make a decision to be rich

Accordingto Evans, the decision to be wealthy is the most important principlethat enables an individual to have a clear mindset to either have itall or nothing (2006). Evans argues that it has never occurred tomany people that they can be rich because they fail or fear to makethe decision to be prosperous. The primary reason a person fails toachieve is the lack of a firm decision to get wealthy. Many peoplejust intend or hope to become millionaires one day but fail tostrategies on how to become rich. It does not yield any benefits byseating down hoping and praying that one day one will becomesuccessful. One should take a bold move and declare “I am going todo it” (Evans, 2006). Evan insists that the decision to get wealthyis an indispensable initial step to becoming financially independent.

Lessontwo: Be accountable for your money

Aperson who aims to get wealthy has to know how much money he or shehas by calculating the net worth either monthly or manually.According to Evans, a person is supposed to know the source ofhis/her money and be accountable of how it is spent (2006). Budgetingis an important aspect for any person who aims to get wealthy. Theprimary reason many people fail to get wealthy is not the fact thatthey lack money, but because they are not accountable of how it isspent. Evans says, &quotIf you fail to your money, it will takecontrol of you.&quot

Lessonthree: Keep a portion of everything you make

Thewealthiest man in Babylon, George Clason says “a part of all myearnings is mine to keep.” According to Evans, millionaires savebetween 15 to 20% of their total income. Evans advises people to save10% of their salary and 90-100% of any income off the salary.According to Evans, the failure to keep a portion of whatever aperson earns means that they will not accumulate wealthy enough toinvest in projects that can fetch huge income (2006).

Lessonfour:Win in the margins

Thisis the principle that helps a person increase the amount of savingsas quickly as possible. Evans points that every person who has madethe decision to be a millionaire one day should strive to decreasethe expenses and increase the income (2006). The only way to increaseone’s income is to look for new deals or new adventures to increasecash-inflow avenues. Evans explains that the best way to save moneyon purchase is to ask “is this the best I can do?” For a personto invest big, one has to maximize savings by going an extra mile ofcutting down the unnecessary expenses as much as possible.

Lessonfive: Give back

Evansknows the value and importance of giving back to the community. Hesays that he gives 10% (tithe) of his money and has never consideredit as a loss but instead has brought him so many blessings. It isimportant to give back to the community because one cannot becomewealthy on his or her ability. One needs to acknowledge God`s help inall the achievements made through ways such as tithing.

HowI will implement the five lessons in my life

Franklyspeaking, before reading Evan’s book, I belonged to the category ofpeople who intend and hope to be wealthy one day. From the book, Ihave learned to make a firm decision to become a millionaire.Personally, I know all the sources of my income. However, I willadmit that I cannot account for every single coin that is spent. FromEvan’s second lesson, I plan to change the way I account for all mymoney. I want to calculate my total income monthly. Knowing my totalincome, I will come up with a budget on how I plan to spend my money.The budgeting will help me avoid unnecessary expenses such as impulsebuying.

Fromthe third lesson, I plan to make it a personal commitment to see toit that I retain a portion of my earnings. For instance, to ensurethat I retain 10% of my salary, I will establish a standing orderwith my bank to deduct an equal amount once my salary is updated intomy salary account to a savings account. I aim to save 90% of all sidesavings by channeling them through e-banking to a fixed account. Toimplement the fourth lesson, I plan always to look out for more waysto expand my income. For example, I plan to join an investors’ clubwith a reputable company for all my savings to earn interest and makemore income. With time I plan to adventure into fashion and designbusiness to increase my income. At the same time, I plan to decreasemy expenses such as buying a house to avoid paying huge rental feesevery month.

Lastlybut not the least, I plan to give 10% of whatever I make back to thecommunity as a way of appreciating my God. I plan to visit children’shomes once in a month, buy them presents and spend quality time withthem. After becoming a millionaire, I plan to start a sponsorshipprogram which will focus on helping homeless children get a home andeducation for a bright future.

Whypersonal financial management is important for me and my family

Forme and my family to make any financial progress, we really need toembrace financial management. Financial management will help me inmanaging all my income and be able to account for all my expenses.Financial management will not only help me grow financially but willsignificantly help run my future businesses. Financial management isimportant since it helps I and my family members set short andlong-term goals for all our business adventures. Of great importanceis that financial management helps me in decision making especiallyregarding any investment project.

Whyit is important to teach family members the skills of financialmanagement

Itis important to teach family members financial management to ensurethey are successful in life. Children should be trained on how tobecome accountable through budgeting. Children with financialmanagement skills know how to save and invest wisely for their ownwelfare and the welfare of generations to come. Family members whohave been trained on financial management are in a better position toaudit their businesses’ auditors and prevent their financialprojects from collapsing. Financial management training is alsoessential for all family members to ensure efficient decisions makingthat will steer the family to greater financial heights.

Reference

EvansP. R. (2006). The Five Lessons a Millionaire Taught Me About Life andWealth. 1st edition.Touchstone Publishers.