Free Motivation Newsletter | Home Wealth 101 by Jim Stovall Yesterday I heard a statistic that is tremendously significant. The first impression of this statistic was so insignificant that I almost didn’t get it. Then the true importance of what I was hearing dawned on me. Last month, the national average savings rate was a negative 1%. At first glance, 1% doesn’t seem like a big number, and the fact that it only deals with the savings rate doesn’t seem to indicate an immediate crisis; however, there are some facts in play here that we need to understand. Interest rates are still at a historic low that most of us have not experienced in our lifetimes. Our economy is relatively healthy and growing at a good pace. Employment is approaching a level we would consider full employment. And, overall, the economic outlook is pretty good. The last time we had a negative 1% savings rate nationally, was in 1933. This, our fans of history will remember, was the low point of the Great Depression; therefore, this begs the question: “What’s going to happen if things get really bad?” This is probably a good point for you and me to review the myths and realities of wealth building. The greatest myth about wealthy people is that they either inherited the money or won the lottery. In reality, over 90% of millionaires are first generation millionaires who earned, saved, and invested their own money. People who win the lottery are more likely to file bankruptcy in the following 10 years than the average working class person in our society. Therefore, with respect to wealth building, we must rely on the old adage: “If it is to be, it is up to me.” Now that we’ve dispelled the myths and established personal responsibility, let’s go over a few rules for building our wealth. 1. Spend less than you earn. 2. Avoid borrowing money. 3. Live on a budget. 4. Save and invest regularly. This would seem to be an elementary school explanation of wealth building. In reality, many millionaires in our society only have an elementary school education. If you’re going to win any game, you first need to understand the rules. Then follow the lead of those who have already won. Whether I am writing books, speaking from the platform, or putting together my weekly columns, probably my best advice ever is, “Don’t take advice from anybody that doesn’t have what you want.” This certainly applies as you strive to reach your financial goals. As you go through your day today, remember the simple rules of wealth building and apply them to your life. They are, indeed, simple but not easy. If it were easy, everyone would be rich. Today’s the day! _________________ Jim Stovall is the president of Narrative Television Network, as well as a published author of many books including The Ultimate Gift. He is also a columnist and motivational speaker. He may be reached at 5840 South Memorial Drive, Suite 312, Tulsa, OK 74145-9082, or by e-mail at JimStovall@aol.com. Visit http://www.JimStovall.com -----------------------------
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