Three simple money lessons
He emphasizes how the millionaires said they made their money:
Hard work, smart investing, and frugality were the top three answers and the ones given by the vast majority of millionaires. Those are all three things that anyone can do and with enough time, a million dollars is not that absurd a sum to save over a long period of time.
It’s an insight that has been made before, such as with the popular book, The Millionaire Next Door. But it’s worth repeating.
Wang illustrates his point about time and money with this example: $690 a month over 40 years earning 5% equals $1 million. There’s no special trading talent required or money making gimmick needed. You don’t need to be a genius. Just a willingness to harness the power of time, setting up an automatic investment program, keeping fees low, and investing for the long haul.
I think practiciing frugality is critical. One reason is that you have greater control over your money with frugality. With investing you’re still subject to the whims of Mr. Market.
Millionaire or not, these three things will stand anyone in good stead when it comes to managing their money.
Marketplace is on a mission.
We believe Main Street matters as much as Wall Street, economic news is made relevant and real through human stories, and a touch of humor helps enliven topics you might typically find…well, dull.
Through the signature style that only Marketplace can deliver, we’re on a mission to raise the economic intelligence of the country—but we don’t do it alone. We count on listeners and readers like you to keep this public service free and accessible to all. Will you become a partner in our mission today?