At the end of the twentieth century, Lebouef found that one in fourteen United States households were millionaires. Lebouef wrote this book to share the blueprint on how his household arrived there.
Lebouef believes we only need to know four things about money: (1) how to make money, (2) how to save money, (3) how to invest money, and (4) how to enjoy money.
In The Millionaire in You, Ten Things, You Need to Do Now to Have Money and the Time to Enjoy It, 2002, Crown Business, Michael Lebouef, Ph.D., challenges us to invest our time actively and our money passively. Here is a quick overview of ten choices you can make to have personal and financial freedom.
(1) Live the Life You Want Instead of the Life Others Expect.
Ask yourself what you want out of life and how will I know when I achieve it. You have to be able to visualize the life of your dreams before you can achieve it. (a) Be sure your goals are yours and yours alone. (b) Use the BEST [Believable, Energizing, Specific, Timed] criteria for setting goals. (c) Write down your goals and review them frequently. (d) Set goals for every major area of your life: career, family, recreation, health, personal relationships, self-esteem, and religious and spiritual goals. (e) check your goals for compatibility, (f) translate your goals into action plans.
(2) Stack the Odds in Your Favor Instead of Against You.
Legal immigrants to the United States become millionaires at about four times the rate of natural-born citizens. Many believe it is because they come here seeking opportunity and find it. Being a smart risk taker can speed up a person’s journey to financial freedom. These seven guidelines may also help speed up the journey. (a) Get a good education but don’t overpay. (b) Choose the right kind of career - one that energizes you and brings you joy. (c) Take action to ensure good health by ridding yourself of bad health habits and acquiring new healthy habits. (d) Live in an area with a low cost of living to reduce your living expenses. (e) Buy a moderately priced home. (f) Have a moderate number of children.
(3) Be a Super Saver Instead of a Big Spender
Every enduring financial fortune is built on a foundation of saving. Even small savings compounded over time can be the difference between poverty and financial freedom. With every dollar you receive, you can either save it or spend it. You will be more successful when you learn to strike the right balance. Pay yourself first at least ten percent of every dollar you earn. The earlier you start saving the more time your money will have to compound. As your income grows, maintain the same standard of living and devote the extra income to savings. Defer your taxes by placing money in retirement savings, such as 401K’s., SEP IRA’s. If you are eligible, use a ROTH savings account to save for retirement. Instead of buying a new car, consider buying cars that are two to three years old and keeping them. Pay off your credit cards every month in full to avoid paying high-interest rates. Record your spending in a log for at least one month to become aware of your spending habits and find out where you can cut back.
(4) Increase the Market Value of Your Time Instead of Working Longer Hours.
Focus your time and energy on getting paid more for your time, not working longer hours. It is better to focus on employability rather than job security because it is likely that at some point you will change jobs. An investment in knowledge and increased skills pays the best dividend. If you work for someone else, develop a side income that is your own. Practice giving something extra to foster customer loyalty. Build your brand and increase your visibility.
(5) Do Less Better Instead of Trying to Do It All.
Do what is most important to achieving your life dreams first, such as projects important to you and time spent with family. Otherwise, left to chance, the most important things will not get done. The way to get more done is to do less better. The two traps to avoid are (1) confusing activity with productivity and (2) confusing urgency with importance. Most people who are successful do not work harder, they work smarter. Use a time log to determine your biggest time wasters. Also, Lebouef includes twelve additional tips to help manage and save time that are brilliant.
(6) Capitalize on the Unexpected Instead of Being Derailed By It.
Always look for ways to capitalize on unexpected changes. Keep your eyes on your long-term goals and don’t allow short-term setbacks to derail you. Don’t allow fear to prevent you from seizing a great opportunity. Use setbacks as an incentive to achieve success. Don’t let the opinions of others limit your success. Take your dreams seriously, but not yourself. Never quit.
(7) Own the Market Instead of Beat the Market
Invest in no-load index funds from a reputable company. Decide on an allocation of stocks and bonds that makes you comfortable. If you are not comfortable with a lot of volatility in stocks, invest more in bonds.
(8) Limit Your Losses Instead of Letting Bad Luck Ruin You.
Buy the right insurance for your situation. Insure for big calamities you cannot afford to pay out of pocket. The only valid reason to have life insurance is to provide income for dependents who would be financially deprived in the event of your death. Don’t overlook long-term disability insurance. Don’t overlook homeowner’s or renter’s insurance. Also, long-term care insurance should be considered.
(9) Listen to Those Who Know Instead of Those Who Sell.
Listen to a few good sources and tune out the rest. Say “yes” to a few good opportunities and say ‘no” to the rest. Determine what type of legal and financial advice you need. Get the best advice you can at a reasonable price. Protect yourself from scam artists by learning to be a critical thinker. Call the Better Business Bureau, state or county consumer protection agency, state attorney general’s office, Federal Trade Commission before you spend your money on an unknown business opportunity. Most people do not need a financial planner. Making the Most of Your Money Now: The Classic Bestseller Completely Revised for the New Economy
by Jane Bryant Quinn and Personal Finance For Dummies
Personal Finance for Dummies by Eric Tyson contain excellent personal financial advice. (10) Do It Now Instead of Regretting It Later
Just as it took know-how, time, vision, talent, patience, and sustained effort for Michelangelo to create David, it will take all of these qualities for you to reach financial freedom too. Earl Nightingale defines success as the “progressive realization of a worthy ideal.” Nightingale also said that we become what we think about. Staying in the time-money trap is easier than climbing out. It is up to you to make it happen.
Start with your dream. Begin where you are and begin immediately to work on making your dreams come true. Commitment creates success. You will need to get out of your comfort zone. Be decisive and take action. Rate yourself on how well you are doing on each of the ten choices listed above. Ask yourself these questions:
Am I living the life I want?
Do I stack the odds in my favor?
Am I a super saver?
Am I improving the value of my time?
Do I do less better?
Do I capitalize on the unexpected?
Do I own the market?
Am I properly insured?
Do I listen to those who know or those who sell?
Do I do it now?
Remember that a million dollars buys freedom, not extravagance. Once you have your million, you will need to allocate it properly. Lebouef reveals some good recommendations on how to allocate a million dollar retirement bucket that he received from a certified financial planner. In short, divide the money into two buckets: one for safety and one for growth. Keep the money for growth in index funds. Divide the safety bucket in half, placing one year of income into a money market fund and the other six years of income in short-term bond funds. Transfer all dividends and interest into the money-market account.
Remember to continue doing what you like to do even after you are financially free to stay mentally and physically active. Many people who achieve financial freedom enjoy finding a cause they believe in and helping it to be successful.
Life should be a series of experiences to enjoy and savor, not merely endure. Lebouf reminds us in closing, ‘Remember the journey is the joy.”
Rating: $$$$$ out of five. This book provides a strategy that a person can use to earn more money, have time to enjoy it, and keep it.
This book was purchased, not a gift.
This book can be purchased on Amazon by clicking the first link below. Disclosure: We may receive a small commission from your purchase, but this will not raise the amount you pay. Thank you for reading this review. Comments are welcome. We have not received anything from the author or publisher in exchange for this review.
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