How to become a millionaire ? Pay yourself every week

Most people think that you can get rich only if you win a lotto game, inherit some wealth or set up a successful business.

Yes, that`s possible.

However, it`s much easier to do it by following a very easy idea: pay yourself first every single week.

At least $20.

I don`t think anybody would tell me that $20 is that much, but if you do it only for a year, you`ll finish with more than $1,000 extra money made of nothing.

If you follow this simple strategy for 20 years @10 % interest rate a year, you`ll have $65,000.

How about $50 a week and 25 years ? You`ll get almost 300 grants.

Finally, if you stash $100 a week, it`ll make >$500, 000 in 25 years.

For me it`s a simple rule to save at least 50 PLN ( $22) every single week.
I usually try to add some extra but never go below $20.

Where to put the money ?

First of all, I`d try to create emergency fund. How to figure the size is in the link.

I also use my revolving credit in my current bank account or even credit card but this is not the best solution.

When you have enough resources to survive in hard times, time to attack your debts.
There are many strategies but I really like David Bach`s idea that you should start with the smallest debt and kill it.

It gives you a lot of motivation when you get rid of the first debt. Psychology is really essential here.

Of course, try to pay off your credit cards and car loans first.

As far as mortgage loans are concerned, I`d try to divide money into two groups.
The first half should be used to decrease the credit, and the other to invest.

Where to invest ?

Oh, that`s not simple.

First of all, I wouldn`t choose any traditional mutual fund. Take some index fund. They are cheaper and better than most of others.

Banks in the USA offer funny interest rates now and safe strategies mean burning your money in the heat of inflation and dollar depreciation. I`d try to exchange dollars for something of more value. Consider foreign currencies, commodities or stocks but if you are an amateur, you should ask some professional for a good piece of advice.

Anyway, today is Monday, a perfect day to enter the path of millionaires. I suggest you should put aside at least $20 for yourself.

If you get a paycheck tomorrow on the 1st April, and it`s a monthly salary how about extra $100 used to decrease your credit card balance ?

Time to act. Good luck !

How to get rich in a week ? Collect pennies !

Now the dollar lost so much value that you can take advantage of the situation and get rich very fast just changing your paper dollars to pennies.

They have a face value of 1 cent, but the metals which are used to make them are worth more than 2,5 cents !

The problem is that they have to be made before 1982.

Later US Mint started to issue coins of worse quality. By the way, in the same way Romans spoilt their money.

Who remembers what happened to their great empire ?

Anyway, look around and collect some real wealth :)

For some industrious folks it would be good idea to sell pennies as metals and again change paper money in pennies. And so on until you get rich.

I know it`s not legal, but as you know the first million must be made in this way ;)

Oh, I would forget. Nickels are good, too but only 7 cents for each one.

What are good investments in bad times ? Silver, art, collections

It`s really hard to predict what will happen in the markets even next week but let`s try to stay calm and sensible.

In my opinion stocks are overvalued. Look at Bear Stearns` price and you`ll see what I mean.

They say their book value is $ 84 on Wednesday and on Sunday they sell it for $ 2 a piece.

So what about other financials ? Are they worth their price shown in the tape ?

I don`t know.

Federal Reserve Board cut interest rates so much that American banks offer deposit conditions absolutely unacceptable for any intelligent person.

So, I`d rather turn to something that has some value which could be measured in some easier way.

If I had cheaper access to silver bulion coins - Silver Eagle issued by American Mint, I`d definitely get some.

Unfortunately, in Poland they cost about $35 a piece. Too much for me to treat it as
any kind of investment.

I love art and collections and that`s a great idea to escape from collapsing financial markets as well. Of course, I cannot afford to buy my favorite Kandinsky, but I am able to try something smaller and cheaper.

I started with something which is not a very serious purchase. I love drinking beer so I bought an old German beer glass for 150 PLN ( $65).



Now I`ll try to look for some painting.

Even if you don`t make a lot of money in this way, you will enjoy the view of nice things you are surrounded by.

I think they look better than a piece of paper from a printer proving you are the owner of 100 L. Brothers shares.

The end of US dollar ?

I don`t really understand the policy of the Federal Reserve. Now the result is that you Americans are not only on the brink of the recession, but your money seems to be worth not much more than a piece of printed paper.

Therefore, I suggest you should buy some other currencies and assets valued in them.
You are vulnerable enough because your paycheck comes in dollars.

I know that trustful banks are important in the financial system. Right, but why does a taxpayer have to pay for their fault ???

Banks lent money to people who shouldn`t get a dime. Then investment banks invented "products" with those loans and now you are obliged to pay for it.

I don`t get it.

USA on the edge. I`m out of stocks.

Stock market seems to be on the edge of collapse. I withdrew most of my funds from my stockbroker account. I doubt whether the bottom is near. I predict it`s only the beginning.

Ben Bernanke and his team are pumping more and more money into the system which suffers from ... cheap money.

Guys, it`s time to face REALITY.

I think there will be good opportunities to buy really cheap stuff in the market. Therefore I`m preparing for it and amass some cash in my bank deposits.

Unfortunately, Polish silver coins were hit by crazy issues of new ones ( >100,000 items). The National Bank of Poland increased the supply of new coins so much that I had to sell most of my collection before the bubble bursts.

Actually, I was hit a bit but fortunately I kept most of the profits.

Now I`m waiting for lower prices in the stock market to do some small shopping.

I guess it will take some time to recover. Well, banks haven`t even admitted how much they lost in subprime crisis.

The dollar is so weak that my assets calculated in it are growing quite fast.
Now they are enough only to buy a used car, but give me some more time.