Tag Archives : wealth

What Percentage (%) of your Income should you Pay Yourself First?

We have all heard that paying yourself first is the best way to become wealthy in our society. Whilst we all know the merits about paying yourself first, many people do not now exactly how much money to set aside to pay themselves first. So is there a magic number? You hear people asking themselves this question all the time How much do I need to pay myself first? So here is my formula on how much you should pay yourself first. You don’y have to agree with it but just have a look at it. Whilst I know everybody is different and people have different circumstances, I am just […]

Pay yourself first even if you are living paycheque to paycheque – No excuses 2

The golden rule of personal finance is to pay yourself first. One of the biggest mistake people make is that they pay bills, rent, loans and other expenses first! The government also pays itself first with YOUR money even before you do. This is absolutely crazy. It is no secret that the rich play by a different set of rules. It is no coincidence that people who are wealthy are in that position – they have achieved and are able to maintain their wealth because they understand how money and personal finance works. They pay themselves first. Then they take care of the little things like bills, loan payments and […]

The Greatest Investment Secret is to start early! 2

Most people looking to make money from the stock market will go in search of that one magic stock. That one stock that will make them rich overnight without the risk. But for any rational person, they know that this is not possible. More money has been lost in ‘magic stocks’ than at the point of a gun. Just look at the story of GTAT investors. Whilst the majority look for that magic stock, it is far more prudent and wise to use a different method to build wealth via investing. A method that you can control. Albert Einstein even called it the 8th wonder of the world. I’m talking […]

How long it will take to become a millionaire from investing?

Becoming a millionaire through investing is a dream many wish to achieve. By investing money, people are essentially stashing it away in the hope of getting more money in the future. The length of time it will  take to become a millionaire from investing in the stock market depends on the amount of money you invest and your annual rate of return. Before we jump into this, let’s look at the three factors that determine the amount of money you end up with: The amount of money you invest – Common sense will tell you that the more money you invest, the more money you will end up with. By investing […]

How to Become Rich on a Middle Class Salary

Many people will lead you to believe that the only way to become rich is by inheriting a large sum of money, winning a lottery getting lucky in the Euromillions or starting a tech start-up and selling it for millions. Whilst those ways do make your rich very quickly, the chances of you getting rich that way is very slim. On the other hand, if you have good savings and investing habits, the chances of you ending up rich dramatically increase. The road will be longer but that the the trade off for the certainty you receive in following that approach. With this approach, a person earning the average UK […]

How much money you would have if you invest $1 a day

Have you ever wondered how much money you would have if you invested $1 a day since you were born? I certainly have and I got really excited when I stumbled upon the ‘dollar a day’ calculator over at the stockchocker website. The calculator lets you put in your birthday and shows how much money you would have if you invested one dollar a day in the US market. You an sole play around with it to see how much you would have if you started investing on your 18th birthday or since you started working full time. What is amazing is that I currently have more money in my […]

How Much Tax you Really Pay on a Purchase – Your Tax Rate is Higher than you Thought!

Apart from debt, on of the greatest stumbling blocks to building wealth is taxes. Don’t get me wrong, I do believe that tax is the price to pay for living in a civilised society. But the amount of tax we pay is way too high. Look at Corporation Tax for example, it is a tax on a tax on tax. Every company in a supply chain has to pay tax and this means that at every point in the supply chain, prices get jacked up by the current corporation tax rate of 20%. Look at the following illustration to see what I mean: If you go to a furniture store […]

Want to live as good as any billionaire? Buy this one thing

Most of us would love to live like billionaires. Billionaires can buy anything they want without having to worry about the cost. They live lives many of us can only dream of. But I can teach you a way of spending 1/3rd of your as well as any billionaire does, and it needn’t cost you that much. If you want to live as good as a billionaire for one-third of your life, buy a comfy bed. We all have to sleep, weather we are MC Hammer broke or Bill Gates rich. You see, most people who sleep the recommended 8 hours a day will spend 1/3rd of their life sleeping. […]

Find out if you are part of the 1%

Many people have a misconception about the global 1%. They think 1 percenters live in big houses, drive fast cars and holiday on private islands. Well, this couldn’t be further from the truth. According to http://www.globalrichlist.net/, if you earn over £25,300 a year, you are part of the global 1%. Yes, that’s right, £25,300 of net after tax income gets you into the 1% club! If on the other hand you believe that the 1% should be determined by wealth as opposed to income, the Global Rich List websites computes this as well. By entering your country of residency, equity in your home, value of your possessions and investments, the […]

Why Don’t You Buy More Money? 10

Money problems. We all have it. Money always seems to disappear out of our bank accounts faster than it comes in. We are always short of money and it is strange that when we are in this situation, we don’t ask the most obvious of questions: ‘why don’t we buy more money?’ I know what you are thinking. The thought of buying more money is absurd, crazy and I am completely out of my mind for suggesting this. But truth be told, if you change your mindset about money and understand how it really works, you can achieve the feat of buying more money. Most people think that money is […]