Investment Advice

Making Dave's Advice Work for You  Back-to-school for the kiddos means back in the groove for the rest of us. But you know what? That's a good thing! The truth is that as you settle back into your regular routine, you're much more likely to get a handle on your life and reach your goals!  This time of year marks a great opportunity to look at where you are with your money, where you're going, and how to get there. Do any of these scenarios sound familiar?  You've fallen off the horse and have days where you think that this money thing just isn't your cup of tea. Make the decision right now to take the first baby step toward success. Things are going "okay," but you've been slacking off for the summer. It's time to get fired up again! You've been sitting on the sidelines—listening to Dave's advice but never doing anything about it. Consider this your call to action! Wherever you are right now, these four tips will help you make your money—and Dave's advice—work for you! Write it down: Dave is a big fan of writing down your goals. He talks and writes about it often. There's just something about writing things down that adds power and tangibility to them. A dream is just a dream until you write it down ... then, it's a goal! When it comes to budgeting, give every dollar a name by spending it on paper, on purpose before the month begins. And remember, the dullest pencil is sharper than the sharpest memory! Start Small: You know how to eat an elephant, right? One bite at a time! It's like losing weight or getting in shape. If you try big, crazy, extreme plans or diets, you're setting yourself up for disappointment. Don't try to take shortcuts. Get on a plan that works, and stick to it. That's whatDave's seven Baby Steps are all about: adjusting your position a little bit at a time until you've completely turned things around. Get Intense! You've got to get wired up and fired up about where you want to go! Do what it takes to keep yourself motivated, whether it's listening to people scream "We're debt freeeee!" on Debt-Free Fridays, reading powerful success stories, or making stuff with cut-up pieces of your credit cards. Continually think about why you're doing what you're doing. One way to do that is to keep a photo of your loved ones in your checkbook or envelope system, and remind yourself: I'm changing my family tree for them. Get Support: Personal finance is only 20% head knowledge. It's 80% behavior change. That will make all the difference! That's why it's important to surround yourself with people who have the same goals, so you get the support and accountability you really need. There are thousands of Financial Peace University classes starting all over the nation. Take the step to get plugged into a community of support and encouragement that's a whole lot of fun for all involved. Find a Financial Peace University class in your area. You can attend the first lesson for free! Connecting with our new FPU Facebook page is another great way to get daily motivation to work your way through the Baby Steps! As the season changes, it's your chance to give yourself a fresh start! Good intentions won't change anything, but intentional action will do wonders. Jump in with both feet, and start doing the little things that make a big difference in your life!  If you're new to all of this motivational talk and just want a way to get your head around the idea of looking at money differently, why not start at the beginning with Dave's best-selling book, The Total Money Makeover. Another great resource is Dave's Starter Special, an exclusive special for newsletter subscribers.  Back to Top  Millionaire Myth Busters  Millionaires just inherited the money. All they do is drive their brand-new cars to the golf course while the rest of us slave away. Those evil rich people.  Sound like someone who is bitter? Maybe. It also sounds like someone who is wrong. Most people with a seven-figure net worth have common-sense habits when it comes to money. Those habits are what led to being rich.Since they can do it, so can you.  Check out some of the other myths that are lumped onto millionaires:  Millionaires just inherited their wealth  This one might be the most common. Many people want to think of the rich as just a bunch of spoiled jerks who haven't worked a day in their lives because they got their money from relatives.  But Dr. Tom Stanley, author of The Millionaire Next Door, found through his research that about 20% of millionaires became that way through inheritance. The other 80% are first-generation rich. That means they started from nothing and piled up money. It's very doable.  Millionaires don't pay their taxes  Riiiiiiight. The best way to build wealth and not raise any suspicion from the authorities while doing it is to ... jip the IRS and have a total lack of integrity. How desperate is someone who believes this? Hate to burst their bubble, but the top 1% of earners in this country pays 40% of the taxes. That number could go even higher with certain tax legislation about to expire. Rich people pay, and then some.  Millionaires all drive fancy cars  The purpose of a car is not to make you look good, but to safely get you from A to B. And the average millionaire has figured that out; Ford is tops on the list of preferred cars of the average millionaire (9.4%). Don't get us wrong. You can certainly own a nice car once you are rich, but not having money and taking out a car payment on a nice set of wheels means the car owns you.  Millionaires are all retired and living the good life  This one sounds similar to the myth that millionaires just inherit their wealth. But the stats are similar, too. About two in 10 millionaires have their feet kicked up. The rest go to work each day and keep generating the income to save and build their wealth up.  They all have high-paying jobs  Really? That's not what Donald, a My Total Money Makeover member, found out.  I was helping my dad pick up a new grill from Lowe's this morning. We got to talking with one of the employees who was unchaining the grill for us, about the retirement program, matched contributions, etc. He mentioned two guys who just retired, one of them after 25 years. These everyday Lowe's employees just saved and saved and saved. The first retired with $1.1 million! The other guy was a manager for most of his 30 years and retired with $4.3 million! —Donald in Virginia Tons of people are afraid to make the sacrifices it takes to become rich, like saving and living a smaller, budgeted lifestyle. So they just fill their minds with stereotypes about millionaires being spoiled, crooked or unhappy. But wealth gained with integrity brings peace with it. And fun!

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