Budgeting and financial planning is what many of us have done, are doing now and will keep doing in the future. There is nothing quite great about this. But if your financial planning has helped you achieve a paradigm status, then that is definitely a huge thing.
I have tried my best to present genuine ideas and tips to help your financial health achieve paradigm status, throughout each page of my book – Millionomics. By the time you finish reading the book, you will realize that I managed to do a herculean task in my life, i.e. I succeeded in achieving paradigm status in my financial health. The best part about Millionomics is that anyone who reads and implements the money management tips described in it can also follow in my footsteps and look forward to achieving paradigm status on his / her financial health.
20+ Points that Millionomics Touches Upon
If you haven’t yet read this book, then you might be wondering how I can help your financial health to become more robust. There are 7 main points that my book touches on and attempts to motivate my readers to achieve in their own lives.
1) Accumulate thrice your annual income by age 40
Fidelity Investments released a report in 2012 that stated that if any employee had managed to accumulate thrice his annual income by the age 35, then it was the first confirmation that he would indeed reach the retirement finish line. You will see in my book, how I managed to get this done by age 38 and you too can follow my example.
2) It is better to save one spouse’s income for dual income couples
Using just one spouse’s income to cover all the expenses and bills and saving the other spouse’s income in its entirety is a huge leap towards building robust savings. You will find out in my book about ways to adjust your expenses in a limited amount per month and save the rest.
3) Don’t allow your expenses to grow with your income each year
Income that you earn at the age of 30 years is definitely much better than what you earned a decade ago at age 20. That is a good thing, but what is not good is allowing your expenses to grow in proportion to your income. Find easy and practical tips in Millionomics to limit your expenses without having to do any major sacrifices.
4) Have a car replacement account
Instead of paying for the installments on a car loan, it is better to keep this money aside to fund a car replacement account. That way you save money that would be otherwise spent in paying interest on your car loan. Check out the book to see how I managed to get rid of my car loan and escaped wasting money on interest.
5) Buy a home that costs within 2- 2.5 times of your income and keep your mortgage within 80 % of home value
Buying within your means is important and this needs restraint. You can see in my book about the process that I put myself through to get a cheaper mortgage rate.
6) Make a will
It is foolish to postpone making your will, thinking that you will make your will before you die, because death never comes announced. Having a will in place helps your descendants to manage their lives better even after your death. See in my book how I created my will.
7) Set aside at least 2 % (or more) of your income for the right causes
If you give charity, then it means you are in full control of your finances. A person who is in full control over his finances will tolerate any upheavals in his financial life in a better fashion than the others who have not yet achieved control. Read my book to see how much money I kept aside for charity.
These points form the backbone of any robust financial planning and if implemented appropriately, can undeniably guarantee paradigm status to anyone’s financial health. Read Millionomics to get a step by step guide to reach this financial goal.