Would you ever want to ask a millionaire questions about how they did it?
I did. MM at PFblog had an amazing post early this month. He hit his goal of one million dollars. I thought other Eventual Millionaires would love to hear his advice, and he graciously said yes to an interview. Enjoy!
When your net worth was only 47k, did you ‘know’ that you would eventually be a millionaire?
Yes, I “knew” it back then (and I have many posts to prove that :-)). I just didn’t expect it comes that early.
I have heard that your income will be similar to the income of your 5 closest friends. Do you think this is true? What has been your experience?
It is not true in my case but it is perhaps because I have the unique experience of moving across different countries and having friends of diversified backgrounds.
I’m really impressed by the time you have taken to set goals at the beginning of each year. How have goals enhanced your journey?
Definitely. I’m a true believer in goal setting. You’ll get what you measure.
If you look back on your journey do you have any regrets?
Yes, full of. If I have a crystal ball to buy and sell things at the right time, I am probably already worth $3M 🙂 On a smaller scale, some missteps also cost me hundreds of dollars here and there. But it’s important to stay positive and turn regrets to lessons.
What would be your best piece of advice for an Eventual Millionaire?
Too many. Let me give you ten 🙂
1. If you don’t have a goal yet, set a big bold goal (5+ years) and many intermediate goals (6 months to 2 years)
2. If you haven’t been tracking your finance, buy a software like Quicken and start tracking. You’ll be surprised to find out where your money goes.
3. If you are early in your career, invest in yourself to grow your income. It’s much easier to grow your top line (income) than your bottom line (savings) in your early years.
4. Live below your means and keep your cash flow positive.
5. Knowledge is power — read profusely about every aspect personal finance and it will pay off eventually.
6. Pay attention to risk management. If you take too many risks, you will never end up rich (or stay rich).
7. File your own taxes — you will learn a lot from it.
8. Learn from past mistakes and learn to control yourself — journey toward millionaire is always a bumpy ride.
9. Be nice to your family or your loved ones. A happy marriage contributes to financial well-being too.
10. Spend wisely to enjoy life along the way. It doesn’t matter how much you are worth at your death — what is more valuable is what happened through the journey, not what is at the end of the journey.