You don’t have to solve the genius puzzle and still can have over $100,000 and be debt-free

The following post describes a sure way to be debt-free and accumulate $10K, $100K, or $1 million.

Ming was working part-time for a US company making $2000 per month while in college. This was more than what his parents would make in a year in his own country. It was a dream-come-true for Ming to make that much money. He learned the habit of being frugal from his parents, or at least that was the habit he thought he had. With this income, Ming was living an abundant lifestyle with a good saving to put him through college.

Ming got a job after graduation with a double salary. Ming felt great as he would be able to save more and become a financially independent person soon. At the end of the first year at this new job, Ming suddenly found himself in debt. He was startled. “What went wrong?” “Why would I get in debt when I made more now?” “What have I done? I did not buy any expensive stuff. Where did the money go?” … Many questions came to Ming’s head. Not being able to find the answers to his own questions, Ming told himself that he would watch his spending. He followed different advices from people to save more. Nothing changed for the next year and the year after, even though Ming made more money year after year. He found himself getting into more debt year after year.

Ming’s story was not unique to him. There are countless people running into the same situation. They make more money but find themselves having less money and possibly get into debt. Yahoo Finance released a heart-broken stat: two-thirds of US would struggle to cover $1000 crisis.

Researches found that there are three categories with respect to finance:

  1. People with a deficit (debt).
  2. People in a break-even position, just getting by day by day and debt-free.
  3. People in a surplus position (no debt and money in savings)

The answer to Ming’s questions can be found in the habit patterns. The people in a deficit position have a habit of spending more than what they earn. No matter how much money they make, they would spend all and more. The people in a break-even position have a habit of spending everything they earn. No matter how much money they make, they would spend all and no saving whatsoever.

The people in a surplus position have a habit of spending less than what they earn. They save a part of what they earn regardless of how much they make. The habit will surely bring riches to anyone who is willing to give it a try with persistence.

Like any habit, the habit of spending less than what you earn is simple but not easy to master. Like personal growth, the more you save, the more you have and the better your life will be. If you start with $100 and continue to put in $100 each month, with 5% interest, by 20th year you will end up with $39,944.47. You can find a lot of investment that returns 5% interest such as index funds, bonds, …If you can find a way to get 10% interest, by the 20th year, you will have $69,402.75. With 15% interest, you will have $124,568.95. Now, if you put in $1000 each month for 20 years earning 15% interest, you will be a millionaire worth $1,245,689.53. Do your own calculation:

As for Ming, he was enlightened when learning that his habit was the cause of him getting into debt even though he was earning more. Ming found a coach who helped him dig deeper into the habit that caused him to get into debt. With the help of his coach, Ming discovered a proven way to build a new habit to replace his overspending habit. Within a very short period of time, he had a sizable saving. His saving kept growing. His confidence grew as the result. The miracle for Ming was that he enjoyed his life much more than before while his wealth kept expanding.

If you are ready to learn more about what Ming did, the exact steps can be found in the following post: The science of getting rich .

About the author: the post was written by Hoan Do, a certified leadership coach with John Maxwell Team. In addition to coaching and training on leadership subjects, Hoan is an investment expert. He studied in depth the method that Warren Buffett is using to build his empire and have been using the method described above along with Warren Buffett’s principles with enormous success. Hoan has one available spot for a qualified client who wants to have more financial success as well as happy life.

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