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Wednesday 11 October 2023

How Self-Made Millionaires Broke Money-Saving Rules to Get Rich

 Self-made millionaires often share traits like patience, discipline, revolutionary thinking, and the ability to turn ideas into profitable ventures. Yet, some of these successful individuals have also ventured outside the conventional norms of personal finance to reach their financial milestones. This blog post explores six money-saving rules that some self-made millionaires broke to amass their wealth, as shared by experts featured in a recent GOBankingRates article.


Don't Fixate on Budgeting.

Joe Camberato, the CEO of NationalBusinessCapital.com, became a self-made millionaire in his 30s through hard work, entrepreneurship, and strategic investments. He emphasizes the importance of budgeting but warns against overly fixating on it. Instead, he encourages people to shift their focus towards increasing their income. Camberato believes the primary goal should be to explore avenues for earning more money rather than pinching pennies.


Make Your Money Work Better for You.

Camberato's personal strategy is to accelerate savings by boosting earnings. While he acknowledges the value of saving money, he emphasizes exploring opportunities to earn more. By doing so, he significantly increased his savings over time.


Put Your Money to Work.


According to Camberato, true wealth-building happens when you invest your money to make it grow. Wealthy individuals understand that increasing their wealth lies in putting their money to work. Your primary career is vital for earning income, but you should also consider side hustles to supplement your savings. Once you've saved enough, invest your money in opportunities like real estate, stocks, or interest-bearing assets to generate more income.


Start Early and Don't Be Afraid of Sacrificing.


Joe Camberato began his financial journey while still in high school. He emphasizes that the earlier you start, the better your financial prospects will be. However, this path requires patience, discipline, and sacrifices. It's about consistency over time rather than seeking overnight success.


Invest in Yourself.


Jeff Rose, a self-made millionaire and founder of Alliance Wealth Management, believes in investing in oneself. He joined the Army National Guard and co-founded an investment firm. Rose emphasizes that whether through education, career choices, or starting a business, investing in yourself can be a powerful strategy for building wealth, even if it means breaking traditional money-saving rules.


Maxing Out a Roth IRA Over 401(k) Match.


Jeff Rose suggests a different approach to the typical investment advice. While many financial experts recommend contributing to your 401(k) up to the company match before maxing out your Roth IRA, Rose advocates for prioritizing the Roth IRA first. He believes that understanding where your money is invested is crucial, which is why he prioritizes the Roth IRA to lock in that tax-free growth.


 

Self-made millionaires have achieved their financial success through unconventional methods and a willingness to break traditional money-saving rules. These six insights from experts like Joe Camberato and Jeff Rose can serve as inspiration for those looking to build their wealth. By shifting the focus from strict budgeting to increasing income, making money work for you through smart investments, starting early, investing in yourself, and prioritizing Roth IRAs, you can pave your way toward financial success, just like these self-made millionaires.

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