The main step one must take in accumulating and keeping your wealth is to live below, preferably well below your means, indefinitely. Why stress indefinitely. Indefinitely because in a study of over 500 millionaires throughout the US over a 20 year period, this is their lifestyle. I know we see the lifestyles of the rich and famous being played out on the television screens movies and Instagram daily, but these are exceptions to the rule. Remember building and keeping your million or your wealth is the goal. As a regular working Joe you can accumulate and keep wealth applying this fundamental. These millionaires are building and still growing. Some of these high paid celebrities and entertainers are staring at bankruptcy or trying to avoid it. Let's check back with them in about twenty years. I know it sounds simple but it is a very powerful tool in accumulating wealth and just living a less stressful life. This can seem daunting in certain places throughout the US where rent and living expenses are high and continue to rise. With that being said, the point is to approach every major living decision that is made with the intent of having enough money to pay your living expenses, and have enough surplus after to invest or save, hopefully both. This is the focus. This fundamental goes hand in hand with the third fundamental which I cover at a later time.
In today's society 2/3 of Americans have no savings. Most Americans are living with too much credit card debt and living paycheck to paycheck. The easy access to credit, combined with living in a super consumer based society can easily place you in a false economic reality. Bill Gates, the billionaire was well known for flying coach for much of his career. Why? Well presumably to help to make sure that he became a billionaire. He obviously had a formula or fundamentals that he followed and applied to his life that governed the way he spent his money, no matter how much he made. Your money should work for you. I look at it like, if you are going to work for most of your life for money, under whatever the circumstances or positions that you have, that money should eventually work for you and last to benefit your children or family members in some way.
Trying to reach and adopt a lifestyle that you cannot afford will lead you to a life of economic slavery and deprivation. In a study of over 500 millionaires over a 20 year period, most of them did not own an expensive watch. Most had never even spent $ 500 on a watch, let alone $ 5000. I know this is not what you would expect. You probably wonder how could that be? Jay z is an expensive watch collector. This one collects Porsches. The reality is most of these celebrities and entertainers that can command large incomes in the public eye are also subject to economic slavery just on a larger scale if they are not living below their means.
In the study of the millionaires, many were business owners some worked high paying jobs, but they all followed a set of fundamentals to maintain their wealth. The expensive watches were mainly for the thousandaires of course. Those millionaires that did enjoy a few high end purchases in cars or a watch did so with a strategy to minimize the overall cost. I go into greater detail about this fundamental and the others that go with it in upcoming posts.