How Millionaires Stay Rich Forever: Retirement Planning Secrets of Millionaires and How They Can Work For You How Millionaires Stay Rich Forever: Retirement Planning Secrets of Millionaires and How They Can Work For You

Chapter 5

Long-Term Savings Plan
Success is the sum of small efforts,
repeated day in and day out...
–ROBERT COLLIER–

The most consistent difference between people who become millionaires before they retire and those who do not is that the millionaires have developed the long-term habit of saving. In more than twenty years of working with millionaires and their finances, I have noticed their tendency to save so many timesthat I have finally taken it for granted.

"Money" magazine published a study in its August 2000 edition which reported that approximately 100 million families in the U.S. Of this group, 7 million families are millionaires and 93 million are not. Although this may not be surprising, what is worthy of note is that 80% of the millionaire families were self made.

The secret of wealth (that so many people miss) is that in America, almost anyone with a moderate level of discipline can become a millionaire. To become a millionaire, you do not have to be a surgeon or the chairman of the board of a major corporation. You do not even have to hold a high paying job. You must, however, be disciplined enough to save money year in and year out on a consistent basis.

Albert Einstein once called compound interest: "The greatest mathematical discovery of all time."

Millionaire Story

LESSON: LONG TERM SAVINGS PLANS WORK
NAME: Don
AGE: 58
NET WORTH: $2.4 million

Don, a retired client of mine, is in his late fifties and is a multi-millionaire. He never made more than $60,000 a year while working and never went to college. No, Don did not inherit his money or marry an heiress.

Don did not have be a surgeon to retire a millionaire; he simply needed to be consistent in saving at least $3.87 a day. Early in his working life Don developed the habit and today he is a millionaire. I have worked with many surgeons who are older than Don who still haven’t saved their first million.

What separates the spenders from the savers?

The millionaires I have met generally do the following...

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