Page 21 - AAA Northwest Ohio - AAA Now! May/June 2013
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21
MAy/june 2013
insurance &
FINANCIAL SERVICES
Brenda Leach-Wilkie
Defiance
Harold E. Lindsey Jr.
CLU,ChFC,CSA,REBC,RHU,AAPA,LUTCF
Main
Michele Price
North Towne
Tammi SanGregory
Perrysburg
Gretchen Settles
CISR
South
ZakWeimer
Main
Frankie Torres
Main
INTRODUCING:
Ann (Ackerman) Martin
Port Clinton
ThinkingYourWay toWealth:
Lessons from America’s Millionaires
C
ontrary to popular perception, America’s millionaires
are surprisingly... ordinary. Most got where they are
through hard work.
In fact, some 80 percent of our nation’s financially
successful individuals are first generation millionaires. In
other words, they weren’t born rich. Instead, they applied
themselves to a career and tapped into tried-and-true
values like thrift and disciplined saving.
What We Can Learn
It’s been said that manymillionaires have a“middle-class
mind-set.” The real difference is inwhat they choose to dowith
themoney they earn. Here’s what we can learn from them:
They think long term.
Successful people understand
that amassing wealth does not happen overnight. They
establish long-term goals and adjust their daily behavior
to achieve them—including overcoming the need for
immediate gratification.
They’re not afraid to take chances.
The rich are willing to
take risks that don’t involve a guarantee (like a paycheck). In
fact, self-employed people are four times more likely to be
millionaires than those who are employees.
They live below their means.
Most millionaires don’t
drive fancy cars or live in million-dollar homes. In fact,
many of them are immigrants who didn’t fall prey to the
consumer lifestyle trap.
They save.
They are generally
fastidious savers, socking away on
average 20 percent of their annual
income.
They invest wisely.
Millionaires
educate themselves about investing.
They seek advice from investment
professionals, and they choose high-
quality stocks or mutual funds. Just
as important, they invest consistently
and hold onto quality investments for
the long term.
They’re “tax-smart.”
The wealthy
have learned that income from
dividends is taxed at 15 percent for
long-term gains, while wages are
taxed at 25 percent for the middle
class. They also know that owning a
business and being able to deduct
business-related expenses is a
powerful tax benefit.
3 Steps toWealth
As complicated as some people make
it out to be, there’s really nothing too
involved with becoming wealthy. It
really boils down tomaking some
sound decisions day-to-day:
1) Set goals.
Sit down and compose
a basic plan that includes your current
net worth and debt-to-income ratio.
Put
MORE INTEREST
in your savings.
Reach your financial goals with
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Then, map out a monthly budget and a plan for regular
saving and investing.
2) Spend cautiously.
It’s easy when you begin making
more money to want to buy a more luxurious car or move
up to a nicer home. But before spending the money, ask
yourself: Would I rather have a fancier car or would I rather
be wealthy? Bottom line: If you take extra money and
invest it instead of spending it, you could become wealthy.
In the same vein, be wary of debt. Avoid using credit cards
unless you can pay off the balance quickly. If you do carry
debt, concentrate on paying it off as quickly as possible.
The interest you’re paying is money you could be saving.
3) Save often.
Saving even small amounts over an
extended period of time is a sure way to enjoy wealth.
The key is to make it something you do regularly and
consistently. Consider having a portion of your salary
automatically deposited into your savings account each
pay period (10 percent is a good place to start).
Here’s to Success!
AAA is committed to your financial future. Through our
partnership with Discover Bank, we offer preferred AAA
member rates on 12-, 24-, and 60-month CDs/IRA CDs,
with competitive rates on additional CD terms, Money
CONTACT US TODAY (419) 517-7149
