Unbelievably, everybody can become a millionaire given enough time. Here’s the simple math
behind it. Betty and Jonathan taught their son to put away $2,000 into an IRA each year, from
the age of ten (10) through twenty (20), and he does no more with the money, but wait.

When Jonathan turns sixty (60) he will have over 1 million dollars with a 6% return. You can
replicate this simple rule and your children will thank you because without really having to do
much they will have a secure amount, as big as 1 million dollars, waiting for them, when they hit
the golden years.

Dreams can be fulfilled, but the first step is to dream and aspire for it. So, you see, everybody
can become a millionaire given enough time.

To become a millionaire, consider the following points:

• Discipline equals success
  Putting something away each payday is better than waiting until later. Frequently people do
  not believe they have money to put away. However, if you were to put away the cost of a
  pack of cigarettes or the money spent on Starbucks each week, you would be surprised to
  find that you could save many $$ a month.
• Systematic investing supplies the building of wealth.
  Having money taken from your pay and put into a savings account is easy for many people,
  because they never see the money coming out of their check, they just see their account
  growing. Everyone needs emergency funds. An emergency fund should be 3-6 months’
  worth of living expenses, or a minimum of $1,000. The emergency fund can be placed in a
  savings account. Even though the interest rate may be low on a savings account, it could save
  you borrowing a lot of money at a high interest rate, in an emergency.
• Start today because the longer you wait, the less you make.
  Putting money away when you are 20 is easier than putting it away when you are 40, because
  you will need to put away three times as much if you wait until 40 to start saving.
  Compounding allows you to need less at an earlier period, which allows you to have more at
  a later period.
• Time and compounding are what make you money.
  Einstein said that the greatest secret in the universe is the power of compounding. Most
  people become rich from making money on money, not from finding secret stock tips. The
  key is investing money in something that pays you money, and then reinvesting it. For
  instance, buy stocks that pay dividends and then reinvest the dividends. This is better than
  buying new stocks and hoping they rise drastically over time.

Speak with your Financial Advisor (if you do not have one, get one)
Discuss what type of savings plan can be set up for you. As they say in physics, “An object
in motion tends to stay in motion, and an object at rest tends to stay at rest.” There are many
savings opportunities available and once you start saving, it is easy to continue.

Most of us are aware that we need to have a workout plan to stay physically healthy. Well,
unbelievably you also need to have a plan to stay fiscally healthy too. So, after learning the
theories we listed above on financial planning, let’s learn how to develop a specific financial

exercise plan to know roughly how much you should be spending on a few different items. This
plan is based on an annual basis of spending for the entire year. While some categories spent
may be more than the annual range for any one month, if you stay in the range until the end of
the year, you should be fine.

You should always have 6 month’s living expenses set aside in an Emergency Fund (Not
invested, just sitting in a bank or credit union account), before you set about anything else. AND,
if you are married or have children you MUST have term life insurance of ten (10) times the
breadwinner’s annual salary.

After that, then the standard to try to manage is listed below (this is a guide). For example:

• Housing 17-25% (Rent/mortgage, repairs and escrow (property or renter’s insurance and
  property tax) payments)
• Food 10-14% (Includes groceries for yourself and the family only)
• Transportation 10-13% (Gas, car payment, repairs, insurance)
• Entertainment and Clothes 5-9% (Clothes, movies, theatre, theme parks, gifts to others and
  holidays)
• Utilities 5-9% (Gas, electricity, water and phone)
• Retirement Account 15% (This is from your Gross income, and you only do this AFTER
  you have an emergency fund saved)
• Healthcare 7-10%

Charity 5-10% (Ideally 10% is best, but sometimes you must adjust, what you donate to
local charities)

Once you get an idea of what your specific spending habits are, you might be able to adjust so
that you meet or even beat the average of the American taxpayer.
Additionally, you should have an idea of the priority of spending for these categories (which bills
should be paid first, second, third, etc.):

1. Food
2. Housing
3. Utilities
4. Transportation
5. Healthcare
6. Retirement Account
7. Charity
8. Entertainment or Clothes

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These are guidelines, and certainly mitigated by each
person’s circumstances. Remember, not everyone will
spend in all the categories listed. Your fiscal exercise
plan should be to try and stay within the target ranges
each month.
By using the financial planning tips, coupled with the
fiscal fitness schedule listed above you should be able to
become financially successful and independent quickly.
Like in the story of the tortoise and the hare, the
tortoise ALWAYS wins. Similarly, financial success is
not a sprint; it’s a long-distance marathon.

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Call today, don’t delay! See how this affects you. We can be reached at 602-264-9331 and on all social media under azmoneyguy.

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