The Five Lessons a Millionaire Taught Me with Richard Paul Evans
Best-selling author Richard Paul Evans wrote a personal finance book called The Five Lessons a Millionaire Taught Me About Life and Wealth. The book was based on the true story of when Richard was 12 years old and his father fell on a job site and shattered the bones in both of his legs. With no income, a large family and massive medical bills they were left destitute. The family of ten moved into a small, 3 bedroom duplex where Richard slept on the floor for two years. At about the same time, a kindly self-made, multi-millionaire invited all the youth in the area to a free lecture about money. He taught us the 5 keys to wealth. Richard followed his keys and it transformed his life.
This book isn’t about greed, it’s about wisdom. The first premise is, ‘life isn’t about money, it’s about God, family and relationships.” Still, Richard was worried that people might think he wrote a book about money to make himself rich, not them, so he decided to give all of his royalties from the book to charity. The book became an international bestseller, hitting #1 in the country of Taiwan and is spreading throughout the world.
As Richard toured the world with his book he discovered his book was very popular with women and that women faced different financial challenges. He discovered 5 mistakes women tend to make with money and, more importantly, their solutions. Richard mentored a group of women for more than a year and put the results in his book just for women, The Five Lessons a Millionaire Taught Me For Women. And, like his previous financial book, all of his royalties go to charity.
The Five Lessons A Millionaire Taught Me About Life and Wealth
Excerpts from the book by Richard Paul Evans
Lesson 1: Decide to Be Wealthy
For the most part, whether to be wealthy or not is your choice.
Most people never decide to be wealthy…and never become wealthy. Choice is the beginning of all journeys.
Lesson 2: Take Responsibility for Your Money
Know how much you have
Where it is coming from
Where it is going
What it is doing in the meantime
Lesson 3: Keep a Portion of Everything You Earn
Pay yourself first!
Save a minimum of 10% or your ongoing salary and 90-100% of your side earnings. Take advantage of the power of compound interest.
Don’t dip into the nest egg as it grows.
Lesson 4: Win in the Margins
Two ways to win in the margins:
1 – Earn extra income
2 – Keep more of what you make
Look for ways to make extra income and you will find there are opportunities all around you.
Four key mindsets that characterize the wealth builder:
1. The millionaire mentality carefully consider each expenditure
a. Is it really necessary, or is it possible to get the same effect without using money or using less of it
b. Is this expenditure contributing to my wealth or taking from it? c. Is this an impulse purchase or a planned purchase?
2. The millionaire mentality believes that freedom and power are better than momentary pleasure.
Understand the danger of debt. Delay gratification. Never borrow money.
3. The millionaire mentality does not equate spending with happiness. Equating spending with happiness is the first step toward self-destruction.
4. The millionaire mentality protects his nest egg.
Successful nest eggers do not invest what they cannot afford to lose.
“There was a time when a fool and his money were soon parted. Now it happens to
everybody.” – Adlai E. Stevenson
Lesson 5: Give Back
Ultimately, the most enjoyable use of money is helping others.
Giving will warm and expand your life. Hoarding money will make you cold. We get back when we give.
Life is not about money. It is about God, love, family, and relationships. “Live so that even the undertaker mourns your passing.” – Mark Twain
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