APVRS 2010

In the year 2002, there were 17.1 million Millionaires in the U.S. By 2013, the number of millionaires will triple due to inheritance. For the rest of you, becoming a millionaire is within reach if you apply a 5 step plan involving the following areas:

1. Health
2. Spending
3. Savings
4. Investing
5. Career

Health

Take care of yourself. If your health is no good, you are not going to enjoy the rewards of a solid financial plan. Eat right, exercise daily, and discipline yourself. The most successful investors are those people who have the best discipline to stay with the program.

Spending

It’s true, a person will always live up to the amount of income they earn. If you make the money, you are apt to find a place to spend it. The key to successfully saving is to spend less than you make and to also spend more money in areas that will actually preserve wealth.

Savings

A disciplined approach to saving reaps rewards in the future. While saving early in your career, allocate a larger percentage of your savings to stocks. A 35 year old with 10,000 and saving 500 a month will become a millionaire by age 56 if the money invested returns 15% per annum. If the investment rate of return falls to 10% per annum, the millionaire age is moved to 63 years old.

Investing

Focus on an investment portfolio that minimizes your fees and maximizes your returns. If you are not sure about the types of investments, consider low cost index funds such as the S&P 500 or Russell 5000.

Career

No matter how much you position yourself, your career will dictate how quickly you reach the millionaire plateau. You have to move above and beyond your job description; Excel in your performance; Make yourself invaluable to the organization. Align your goals and focus on efforts that make you a valuable employee. You want those merit raises. They will add up.

With gas prices still very high, people want to save some money at the pump. Gas rebate credit cards are becoming a very popular alternative. The average gas rebate credit card can save you up to five percent on gas purchases. If you’re not careful with your credit card use, a gas station credit card could make you pay more for your gas.

Misleading Gas Credit Card Applications

Before applying for any credit card, read the terms and conditions. Most gas credit cards claim high cash back percentages, but there is usually a catch. Here are some examples:

• cash rebates limited to one gas station company
• high cash rebates only during an introductory period of usually 6 to 12 months
• a monthly or annual limit on how much cash back you can earn
• a tier structure with varying cash back percentages depending on spending

The credit card companies are very careful with their marketing wording. A cash back percentage is usually quoted as ‘up to 5% cash back’. Once they say ‘up to’, you know you won’t get that high cash back all the time. So know what you are applying for to prevent disappointment.

Keeping a Balance Will Blow Your Cash Rebates

With any credit card, if you only make the minimum payment and keep a balance, you will pay interest charges. Over time these interest charges could cost a lot more than any cash rebates you earn. Try to only use your credit card as much as you can afford to pay off next month. This can be difficult to adjust to for some people. Suddenly they are paying for everything with their credit card to earn more cash back. Meanwhile it seems as if their bank account is unaffected. This could lead to impulsive spending. Before they know it, their bank account is empty and a big credit card bill shows up. Then the interest charges add up. This is how credit card companies can afford to offer cash back. Ideally you should keep track of your credit card spending and keep that much cash aside as money already spent.