Who Wants To Be A Millionaire?

There have been a lot of questions lately about what a Millionaire is and how a millionaire should live. I can see just by the questions I received there is a lot of confusion around this subject and it’s important for you to understand exactly what it means so you’ll know what it takes to be one.

To know what a Millionaire is; you must understand the definition of being a Millionaire.

And before we can define what a millionaire is we must first understand three terms. The three terms are net worth, assets, and liabilities. Let’s look at these one at a time.

Assets are investments that grow in value. For example if you own a home or rental property, that’s an asset.  Stocks, bonds, precious metals, and collectables that have the potential to rise in value are also considered assets. A vehicle that you drive although it has value is not considered an asset because it depreciates in value. Your vehicle is actually a liability.

Liabilities are things that cost you money. That’s why your car is considered a liability. Loans on your home or rental property, car loans, personal loans, credit card debt, interest payments and month utility bills are all considered liabilities. In other words liabilities do not appreciate in value and you never see that money again. It’s a cost.

Is this making sense so far?

Now that we understand assets and liabilities we can now define Net Worth.

Net Worth is assets minus liabilities.

Let’s go through an example. If your home is worth $250,000 it is an asset worth $250,000. Most like you have a mortgage on it and let’s say you owe $200,000 to the mortgage company you have a $200,000 liability.

For this example let’s assume you have nothing else going on to make the number easy for you to understand the concept here. 

Your Net Worth then is:               $250,000 (assets)
                                            - $200,000 (liabilities)
                                               $50,000 (Net Worth)

No math degree required. This is pretty simple so far, right? 

Ok Good. We’re almost there. Just one more step.

Now a Millionaire is someone who Net Worth equal to one million dollars or more.

That’s it. We’re done now with our definitions. To be a millionaire means you have $1,000,000 more in assets than you have liabilities. Think of it this way. If you sold everything today and paid off all your liabilities you will have $1,000,000 cash in your hands.

Does this make sense?

You have just learned everything you need to know from the best selling book Rich Dad, Poor Dad by Robert Kiyosaki. I still suggest that you read the book because it will give you some additional insights as well. But you just got the meat of it here without having to spend all the time to read it.

Now that we have all the technical stuff out of the way, we can focus on the next area of being a millionaire which is the perception that most people have. Most people think when you’re a Millionaire you’re just spending money on fancy cars, taking vacations all the time in exotic locations and you can buy all the toys you want when you want.

Think about what I just said for a moment.

If you really do this you won’t be a millionaire for long. What most Millionaires do is they live a moderate lifestyle.

I know this may seem strange at first but why would a millionaire want to live a moderate lifestyle at first?

You guessed it. 

To build their assets and keep the investments growing.   If you’re spending money, you’re not building assets. You’re just accumulating more liabilities.

Now there’s nothing wrong with having a nice car or having some toys. But in order to build true wealth and keep it you must live moderately at first, build your assets, and keep your liabilities minimized. After you created great wealth then buy what you want when you want it because your assets will produce more money than you can spend.

Although I do know some of you may be up to this challenge, aren’t you?

When you follow this formula you can become wealthy in a short period of time and for the rest of your life.

But if you do what most people do who want instant gratification it will kill your wealth. Is that what you want?

I sure hope not because you’re going to become what I call a broke rich person. You may make a bunch of money but you never have any because you’re always spending it. My mentor Bob Proctor once told me that he was in this situation and it’s not a good place to be.

On my journey to becoming wealthy I used to drive a 15 year old Ford F150 pickup. It had a northern two-tone paint job. For those of you who don’t know what that means; it means it had lots of rust and little paint.

Sure I could have bought a new vehicle any time I wanted to but I chose not to until I built up more assets. The truck was paid for over 12 years ago and the only cost I had was gas and maintenance. And when you have a reliable vehicle your maintenance costs stay low.

By the way, now you don’t have to read the best selling book The Millionaire Next Door by Danko either. Although it is interesting to see what most Millionaires do but it is not where you want your mind to focus. It will actually slow you down Creating Wealth.

Are you getting this?

I sure hope so.

I’m going to cover more in depth examples with solutions in upcoming articles so you can become wealthy quicker and easier. It doesn’t take that much extra effort and by doing a few simple things, you can shave years off the time it takes you to become wealthy.

And, if you Want to Get a Jumpstart on Becoming Wealthy, then I have something special for you. Continue reading by just clicking your mouse here. I haven’t shared this with anyone yet and you can be the first. So when you Continue Reading Now by Clicking Here, you’ll get a head start on everyone else.

I have to run for now and I look forward to seeing you back next time.

But before that happens, Now it’s time for you to Take Action and I really want to hear from you. Go ahead and Write a Comment Now and let me know what you learned and more importantly, how you will apply what you learned in your life.

When you Write a Comment you’ll be glad you did because you’ll engrain the lesson deep down at the cellular level because you took action.

I look forward to reading your comments.

To Your Success,

Andy Fuehl

PS:   To be a Millionaire you must have a net worth of at least one million dollars after all your liabilities are satisfied. You can reduce the time it takes to become wealthy by taking a few simple steps that will increase your net worth quickly and you won’t even feel it. And if you want to achieve success even quicker I’ve got something special waiting for you when you Click Here.