Millionaire Focus

Hi guys, sorry about being offline for the last 2 days. As you know, I have been taking Saturday's off, but this last Friday, I was so tired after it got dark, I fell asleep. I then intended to post on Saturday to make up for my missed Friday, but again fell asleep. I guess I needed the rest. I am back in the saddle this evening and will pick up tonight where we should have been on Friday - Millionaire Focus.

Tonight, we are going to cover some spending tips that are used by various modern millionaires. As we have discovered in prior posts, many of our modern millionaires do not spend money like we had seen in the past. Many do not go in for the gigantic estates, the fancy cars, etc. Many modern millionaires are much more frugal and it could be useful to see what they do and perhaps mimic some of their behaviors.

Forbes posts a list of the world's billionaires, and as of 2010, Mexican tycoon Carlos Slim Helu (Carlos Slim) currently holds the number one spot for being the world's richest billionaires. He is now richer than Bill Gates ad Warren Buffett as being the wealthiest person on earth. He is also known for his frugality. His net worth is somewhere around 60.6 billion dollars. What that means to you and me is that he can spend $1,150 a minute for the next 100 years before he runs out of money. What would you do with that much money.

Part of Carlos' frugality includes living in the same home for more than 40 years. Just because you have the money does not necessarily mean you need to get a larger home. The key is to keep your home simple, get the best you can, within your means. Before you go out and purchase that huge mansion, ask yourself, do you REALLY need all that extra space? With a larger home comes larger maintenance costs (electric, water, cleaning, etc.). Consider all the costs involved with a larger home and determine if the larger home is necessary for your comfort, or if you are just looking for a larger, more expensive home because you want to impress friends and neighbors. By keeping your home simple, you should be keeping your costs more reasonable. Just because you may be making large quantities of money now, does not mean that cash flow will continue indefinitely. By keeping things simple, you are increasing your chances of success for the long term.

Another trick many millionaires use it to purchase their clothes off the rack. Do you really have to have that designer outfit that costs hundreds of dollars? Will anyone really care how much you spent on your clothes. Make sure you have good quality clothes, but you do not need to go overboard on clothing. Some frugal billionaires believe it is not worth the effort or expense to purchase designer clothing. Heck, you may meet some billionaires who predominantly wear jeans and a t-shirt. It is not the clothes that make the person, but rather the person who makes the clothes.

Carlos Slim also does not own a yacht or a plane. He does not spend on any luxury items that he does not need. The key to remaining wealthy is to reduce the amount that you spend. If you do not purchase what you don't need, you can invest your money elsewhere, where it will work for you instead. You should not be working for all the "toys" you purchase. Making your money work for you instead of the other way around will help you to continue to grow rich. Another billionaire who skips many luxury items is Warren Buffett. He believes that "Most toys are just a pain in the neck."

As we continue our our odyssey of examining millionaires and billionaires, we will most likely continue to discover a commonality, that most of these people are extremely frugal. If we can reduce the amount of money we spend on things we really don't need (analyzing want versus needs...) we stand a better chance of keeping our money where it belongs, in investments. If we spend less than we make, and reinvest the money we have saved, then there is a good chance that we too can enter the ranks of the millionaires. If nothing else, we will become richer without having to work much harder.

If you are looking for a second income stream to help build your cash portfolio, you may find some interesting business opportunities on our website. Please feel free to contact us with any questions regarding the business opportunities we offer. If we don't have what you are looking for, we may be able to at least point you in the right direction.

Until tomorrow...