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.
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.