An Easy Approach to Becoming A Millionaire

Instead of thinking about wealth and lavish luxury, think about your net worth. What is your net worth?

Well it’s your debt (obligations) subtracted from what you actually own outright and the value of that stuff. The more you own, the higher your net worth.

When you hear about millionaires, do you realize there are more millionaires today than there were say, 30 years ago? Not because they have more money, but because they own a million dollars or more worth of stuff and what they own, outweighs their debt by at least a million dollars.

You see that’s the key. Instead of trying to build wealth, build your net worth by paying off your debt. The less debt you have, the higher your net worth becomes.

A person with no debt is richer and has a higher net worth than a person who’s debt outweighs what they own, regardless of income.

The less debt you have, the closer you get to becoming a millionaire. It’s as simple as minus, zero or plus. Are you in the minus category, the zero category or the plus category?

Heck, you probably know a few millionaires yourself and not even realize it!


26 thoughts on “An Easy Approach to Becoming A Millionaire

  1. I was walking along with a friend the other day and we passed the house nearby to where I live. According the papers the guy is about £60 million in the red and the banks are refusing to give him an more loans.
    I don’t own a house and none of the furniture or white goods where I live belongs to me, neither the bed linen, towels or even the kettle. Pretty much everything I have could fit in a large and a small suitcase allowing me to move on whenever I need to.
    I said to my friend, if he really is £60 million in debt, then I suppose I am richer than he is?

    But regardless of what I own or what my bank statement tells me I have in my account, I know that I have something that is priceless – life. Beyond any human’s ability to meet the cost and value of life!

      1. I think I understood you on this one Coffee…I only mentioned the value of life because I don’t want to compare myself to the man i mentioned who is so much debt. Regardless of how much he owes, his life and my life are both extremely precious – so we are equal. I just hope he is coping with the stress…I would find that soooooooo stressful.

        1. bottomlesscoffee007

          I couldn’t imagine Mel. It must be hell, and even worse when someone realizes that they did it to themselves.

    1. bottomlesscoffee007

      You are right though, you are richer than he. Simply because you have no obligations, you have more freedom than most for that one simple fact.

    1. bottomlesscoffee007

      You’re much richer than me then Dorothy. I hope to be there one day. Until then, it’s one day at a time for me.

        1. bottomlesscoffee007

          The fact that you have zero debt Dorothy, means that your money works for you, not you working for your money.

          You are also much freer than me. Since you have no debt, you can do and go wherever you want. There is nothing holding you back. You are not beholden to anyone.

  2. hawk2017

    Very true but because one who has no debt, in this system, cannot servive with out a credit score. With that, one is considered in poverty. Don’t you love financial systems of banks??? I am a millionaire, because I own all that God gave me. I have more than 90% of the people of the world. Everything I need and a lot of what I wanted. :))

  3. I have an excellent FICO score. I have virtually no debt and own my home outright (i.e., no mortgage). But I found it interesting that, when I got my latest FICO score report, I saw this line: “Your score was impacted because your credit report shows no non-mortgage installment loans or insufficient recent information about your loans.” So, basically, if I want to improve my FICO score, I need to take on more debt. Seriously?

    1. Marleen

      People can build up their scores by having a credit card and using it but paying it off every month (thus having no ongoing debt and paying no interest). Of course, the individual needs to have that kind of self discipline. I have the discpline, and I did this for a while in the last five or so years (with a housewares store). And then I forgot to buy things (which, of course, didn’t hurt me at all), so they cancelled my card (after my not using it for a year I think). [My husband, with a high-paying job, had less (to no) self discipline and liked taking out more and more credit cards and not paying them off (only making monthly payments that were not in full but required… until that became a bit hit and miss). That was a couple decades back. He nearly ruined us. (Depending on your definition, he did.) As a wife, if your husband starts telling you not to pay off your card(s) or to use your card(s) to pay for groceries… WARNING! Heads up. I know Target now has a card that can be used for groceries and gives a discount, but you need to see what is going on and be sure anything like that is being fully paid.]

        1. Marleen

          Thank you for the compliment and interest. I do not have my own blog site… nor podcast or anything like that. My online experience in writing began with forums. Then I began going to the blog site of a fellow person posting in that environment, someone across the globe who I consider a friend (from online alone). My most recent brainstorm was to find a journalist or publication with which to trek the planet and for whom to write or edit (as I know “writers” don’t necessarily know how to write well — but I respect the drive to be a witness). In the realm of blogging, I have considered putting together an avatar anyway. I don’t really know how, and even the computer expert I know is clueless.

  4. Excellent advice! I wish I had no debt! First big money I come into I am paying off this house. It’s the biggest debt and pretty much the only debt we have. Love my house but wish I didn’t owe the bank. 😑

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