600 Millionaires Can’t Be Wrong
Building wealth… real wealth that could give you true financial independence… is not easy.
Nor is it a quick process.
And due to these two factors alone, it’s not surprising that many Americans wind up in the poorhouse rather than a penthouse.
In fact, the numbers about America’s retirement savings crisis are staggering. Hopefully, they will shock you into action. Because if you’re not doing everything in your power to save for the future, your future could be terrible.
Time to Get Real About Your Savings
According to a 2018 study by Northwestern Mutual, 21% of Americans have saved ZERO dollars for retirement and one-third have less than $5,000.
The average for Americans who do have retirement savings is a more respectable $84,821, but that’s hardly enough to finance a retirement that may last 30 years or more.
The average life expectancy in the U.S. is 79 years — slightly more for women and slightly less for men — meaning you should plan to spend at least 14 years in retirement.
Fourteen years times $46,000 a year is $644,000… at a minimum. This measure doesn’t account for inflation, either.
The point is most Americans will not have enough money to finance a comfortable retirement.
Imagine working your entire life away only to live like a pauper in your golden years.
No thanks. It’s time to get real about saving for your future. Here are some steps you can take today.
Do as the Wealthy Do
Sarah Stanley Fallaw, director of research for the Affluent Market Institute, recently released eye-opening findings about wealth.
In her research she studied 600 millionaires to see what they owed their success to. After completing her research she discovered this.
No matter your age or current earning potential you can become rich. But it takes mastering six specific behaviors to do so. These are as follows, as reported by Yahoo Finance:
- Frugality, or a commitment to saving, spending less and sticking to a budget
- Confidence in financial management, investing and household leadership
- Responsibility, which involves accepting your role in financial outcomes and believing that luck plays little role
- Planning, or setting goals for your financial future
- Focus on seeing tasks through to their completion without being distracted
- Social indifference, or not succumbing to social pressure to buy the latest thing.
In Wealth Watch, we talk about many different ways you can start making these behaviors your own.
To get you started, consider these simple-to-follow tips:
Use Cash for Purchases — It may sound overly simple, but when you can physically see cash leaving your hand, you definitely spend less. And this is a psychological battle you can win day in and day out for big savings over time.
Max out Your 401(k) Contributions — Good news: 401(k) contribution limits are getting an increase in 2019. Contribution limits are rising from $18,500 to $19,000 for workers under 50, while limits for workers over 50 are rising from $24,500 to $25,000. Do yourself a favor and find a way to hit those new maximums with your 401(k).
Reduce your debt — High-interest debt, especially credit card, is a retirement savings killer. YOU MUST pay this debt down as aggressively as possible. This may mean living below your means for a while and exercising frugality.
And if you feel like you’re missing out on the fun things in life while you’re saving for the future…
Keep in mind these are the most important behaviors millionaires follow, meaning you’re in good company.
Remember that fact and stay the course!
I’ll cover more of these money-saving hacks in greater detail in future issues.
Here’s to growing your wealth,
Chief Income Expert, Mike Burnick’s Wealth Watch
Editor’s note: There’s one other thing you can do to retire rich…
Make this three-minute phone call right now… and potentially retire a multimillionaire as early as TONIGHT.