INTRODUCTION - DO NOT GET INTO CONSUMER DEBT!!

DO NOT GET INTO CONSUMER DEBT!!

We must get rid of consumer debt so we can be on a secure footing, which will allow us to save, invest, and take larger "risks" without betting the home and family in the process.  Don't risk eating money!

Not all debt is bad, but debt on worthless or depreciating assets is considered personal debt.  Debt on an asset or business we are not ready to take and risk losing.  This is considered bad debt. 

HOW THE RICH REALLY GET RICH

Most millionaires do not make over a hundred thousand Dollars per year.  We must Save up and invest.  Make a budget and make a plan for our money; this way we have left over income to save and invest.  

Consumer debt works against us.  Think of Personal Debt as investing, only in reverse!  That VISA card earns the bank an 18% return on the "Smith Family VISA Investment Fund".   The bank invested in us and got an 18% return on their money! Not bad considering the SNP500 only Returns 10% on average.  

The truth is that Most wealth is created by saving and investing in some form.  Wealth creation is a process, and most wealthy people simply follow a process, weather they know it or not. 

It has nothing to do with how much we make and everything to do with how much we keep.  Most millionaires, or roughly 78%, are first-generation millionaires, but most of that wealth is also lost within 3 generations. This means that the grandparents often built the wealth and their grandchildren probably will have lost it or never had a chance to save it.  True wealth is not in the money, but understanding how to manage what we have and a bit of luck.

Every single person in the developed world has the opportunity to become a millionaire or multimillionaire by the time they retire at 65.  Most can do it by 45 or 50 if they start saving and investing early enough. 

GET RID OF THAT DEBT

Getting rid of debt is a scorched Earth process; we need to eliminate all expenses and cut back on everything to pay off that debt as fast as possible. Once this debt is paid off, we have a huge tool going forward to invest and save.  It makes no sense to try and save at 10% interest when we are also paying 18 to 26% interest on debt. 

The process is fairly simple, and I will go over it now and someday in a series of videos as well.

Introduction - Do not get into Consumer Debt

Step 1 - Start a Rainy-Day Fund

Step 2 - Pay off all debts except the Mortgage.

Step 3 - Build the Real Rainy-Day Fund

Step 4 - Get those investments going.

Step 5 - Save for Education

Step 6 - Pay off the Mortgage Early

Step 7 - Become Wealthy and GIVE

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