Financial Samurai Joins “The Million Dollar Club!”
Luck will have it there are others out there who also want to become millionaires! Who would have thunk. After putting up my $1 million dollar “Freedom Fund” tracker this past June, I’ve had a number of inquiries regarding what it’s all about. By starting completely over in my Freedom Fund this past summer, I will be as honest about my finances as possible. If you’ve read my earlier Net Worth posts, you’ll know that I believe people should have a Cash Goal, rather than a Net Worth goal. Very simply, we have a better chance of counting on Cash during retirement, than on all the other stuff.
I was surfing the PF network and stumbled across J. Money’s site, “Budgets Are Sexy.” He started “The Million Dollar Club” for all those who simply wish to be millionaires. There isn’t any red velvet rope to get in and I don’t want to be alone in my journey towards gathering $1 million cash, so I’m joining! It’s all about community and I’m looking forward to J and my fellow members stopping by with their support.
Here is my pre-requisite Millionaire To-Do List:
1) I will never dip into savings to buy anything superfluous (shoes, electronics, toys, games, cars, etc). Cash flow is the only source of my spending.
2) I will not use my credit card if I cannot pay it off every month.
3) I will save and invest my yearly bonus and only live off 85% of my base salary.
4) I will take advantage of all tax efficient retirement plans. At the very least, I will max out my 401K every year knowing that it cannot be counted on.
5) I will pay off my rental property within 8 years and buy another rental property in a no state income tax state within 24 months.
6) I will find at least 5 sources of alternative income, including: interest income, stock dividends, online income, private equity returns, and rental income.
7) I will never let money control my life. Instead, money will be my own personal servant named Alfred when I choose to retire.
8) I will take care of my wife and never let her financially suffer.
9) I will always value time over money and never be a penny wise and a pound foolish.
10) I will continue to find new ways to financially help others who need help.
As I wrote in my Macbook saga, going a day without spending money on things may be akin to going a day without drinking for a recovering alcoholic. I spend too much money on crap to the detriment of my retirement, and I admit it. By joining the club, I’m more confident than ever we’ll be able to succeed in our dreams of becoming financially independent sooner, rather than later.
Related Posts:
“Your Net Worth Is An Illusion”
“Immediate Proof Why Net Worth Is Rubbish”
“Why Do People Spend More Than They Earn?”
“Knowing When To Walk Away: Financial Planning For An Unknown Future”
Keigu,
Financial Samurai – “Slicing Through Money’s Mysteries”
Sounds like a cool club! Joining a group with a similar goal always helps. The support network is very important.
I’ve always wondered about the “Freedom Fund”, so thanks for sharing some more of your thoughts and details. That’s pretty cool. That musta been a very expensive watch you sold!
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Yessir, that’s what I’m talking about! I’ll add you as a “member” asap my friend :) One day we’ll all be at the beach enjoying our money work for us!
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@J. Money
Good stuff J. Money! Good work starting the club. I’m glad I’m lucky #8 on the list! We should have at least a yearly check in, to see how we’re doing and such. It’ll be great. FS
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I was always wondering what that logo was, and now I know! It’s cool how you have a list of pretty solid pre-reqs. and guiding principles. If anyone is going to make it, you will.
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admin Reply:
September 28th, 2009 at 9:53 am
Hey David – Thanks man. My biggest wish is that we can all make it together! It’s so easy to cheat on ourselves if our principles are hidden. I’m a recovering spendaholic, and every time I have an urge to splurge, I’ll remember my publicly announced promise. Besides, it’s more fun being part of a greater community of writers with like-minded goals. Best, FS
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Excited to have you with us. Gonna be a great day when we all hit that 7 figure milestone!!
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@Brian Hey Brian, looking forward to it. One team one dream! :) Thanks for highlighting the Blog Talk Radio thing. Sounds like a lot of fun. I’ll try and dial in. Best, FS
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Nothing like starting early, Samurai. I shall join you!
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admin Reply:
October 1st, 2009 at 8:08 am
Lee – Sounds good man. Welcome to the club!
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Well thanks for the shout up….I saw the Million Dollar Club post a while back…but your post inspired me to write my list up. Hee hee.
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admin Reply:
October 16th, 2009 at 2:37 pm
Awesome Lulu! I’m glad my post was a little inspirational. Your site is inspirational to me! You are absolutely rocking the ranking charts, so hopefully FS will be up there with you some day soon. Best, FS
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Cool beans, FS; it looks like you have a pretty solid plan, and I wish you all the best of luck in reaching your million dollar goal. Hopefully, I’ll be there to chill with you in Millionaire acres soon.
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Really? Not use your savings for a car? Seems counterintuitive to use cashflow for a car, assuming by that you mean you’ll be making auto loan payments. No???
.-= thriftygal´s last blog ..5 Obstacles To Financial Success =-.
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This is really cool stuff, I’ll start my list and join this club.
.-= Benjie @ Zordane´s last blog ..All For One – One For All =-.
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I like #1, may I steal that. Such a wonderful idea.
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