How Much To Spend on a Car?

How Much To Spend on a Car?

Do you know that how much you spend on a car affects your wealth in the long run? Yes, This is true. Buying a Car is a Financial Decision and what will be your future wealth will really depends on which car you buy in the which stage of your life?

What most of the young working couple do is, they buy expensive and luxurious cars during the first 5 years of their working life. This is because they are earning a lot. But they don’t realize that this financial decision will erode their over all wealth over a period of long time.

Ideally you should buy a car which is less than 1 % of your total net worth. Rich people buy their new car in this way. While middle class people buy a car that may be worth of 30-70% of their total net worth…!!!

You will ask me than that, in my city I am seeing lots of luxurious cars. Does it mean that all of them are rich? Well, No. 95% of them are upper middle class. They just earn more and that’s why they qualify for large loans. But in reality they have a little accumulated wealth.

Remember, A Wealth is something which you accumulate. Your Income is not your wealth. Many people don’t agree with this argument. But this is the Truth. Your Bank or a Car Company will never tell you this Truth. Because they are not in the business of spreading financial awareness to the people. So if you understand the meaning of this article than never buy a car that is worth more than 1% of your total net worth.

Now, what if your current net worth is very low and it’s 1% is not sufficient to buy a new car? Well, than buy a second hand car. The people who are rich today have drive the second hand car for several years of their lives and that’s why they are rich today.

Millionaires Live Below their Means

Millionaires Live Below their Means

Many people have a false belief that Millionaires are those who drive expensive cars, wear branded clothes & watches and do expensive shopping. This is because the media (News Papers & TV Channels) only cover the life style of glamorous people who spend lots of money.

Media never cover the life style of the true millionaires who live frugal. The real millionaires are those who live below their means, never take a debt and  always spend less than they earn. But unfortunately, this is not the glamorous life style and that’s why there is nothing exciting in it.

If someone is earning $ 4 Million a year and his accumulated wealth is just $ 1.2 Million than technically speaking he is a millionaire but he is not wealthy. The millionaires are those who live frugal and spend less than they earn.

While a True Millionaire is one who if stops working today than also can live for the rest of his life on his wealth without working. Being Frugal is a best Financial advise but unfortunately, there is nothing exciting and glamorous about living frugal and that’s why media never cover the life style of true millionaires who live frugal.

It is only the Financial Education, by which you can understand the value of Living below your means…!!!

Are Billionaires Really Frugal?

The Frugal Billionaires: Are Billionaires Really Frugal?

Recently I have posted the article – The Frugal Billionaires.

All of these billionaires are the frugal billionaires. Here is a list. To know more about these billionaires, go to the above link and you will find a wealth of information about these billionaires in that article.

01) Warren Buffet
02) Ingvar Kamprad
03) Jim C. Walton
04) Azim Premji
05) Frederik Meijer
06) Richard Kinder
07) David Cheriton
08) John Caudwell

All of the above people are Forbes Billionaires and they live frugal. They can afford anywhere from a Limousine car to a private jet or a private Yacht. But they love to live frugal. This shows that not the all the billionaires love high status life style.

Not the all the Billionaires love to travel in their private jets. Some Billionaires do love to drive their bike and some think that going to a barber is the wastage of time so they cut their hair themselves.

By reading about the above billionaires, your eyes will be open. So go and just check the full article.

The Frugal Billionaires

The Frugal Billionaires

Billionaires drive luxurious cars, travel in private jets and travel the world. They spend lots of money behind their life style. And Why not? They are the most wealthiest people around the world so why not spend millions of dollars behind luxurious life style?

But of course, not the all the billionaires love to live a lavish lifestyle and spend millions of dollars behind their luxurious lifestyle. This Article is about those frugal billionaires around the world who spend very less money in comparison to their wealth.

01) Warren Buffet

$57 billion

Country: United States

Despite his billions, America's most admired investor still lives in the same modest Nebraska home he bought in 1958 for $31,500. He also recently traded in his six-year-old Lincoln Town Car for a 2006 Cadillac DTS. The Oracle of Omaha has spent the past month sticking up for the middle class, lamenting that he pays less taxes, as a percentage of income, than all of the other Berkshire Hathaway employees in the company's home office--including the secretaries and receptionists.

02) Ingvar Kamprad & Family

$33 billion

Country: Sweden

Ikea's pennywise founder is famous for being cheap. He flies coach, drives a 1993 Volvo and often dines at lower-tier restaurants. He also reportedly furnishes his home with Ikea's affordable merchandise. Kamprad was recently quoted as saying that the only luxuries he splurges on are the occasional upscale cravat and Swedish fish roe.

03) Jim C. Walton

$16.4 billion

Country: United States

The Wal-Mart scion and member of America's richest family inherited his billions--and spending habits--from his father Sam. Like his billionaire sister Alice, Jim prefers sturdy pickup trucks to flashy, expensive sports cars. He reportedly drives a 15-year-old Dodge Dakota.

04) Azim Premji

$17.1 billion

Country: India

Parsimonious Premji inherited a cooking-oil business from his father and transformed it into technology-services giant Wipro. He drove a Ford Escort for eight years before trading it in for a new Toyota Corolla, but he usually walks to work from his nearby home. Premji often stays at budget hotels when traveling in India. he reportedly wears non-branded suits and flies economy. Paper plates were used at a luncheon in honor of his son Rishad's wedding a few years ago.

05) Frederik Meijer & Family

$2 billion

Country: United States

The reclusive retail tycoon was raised to be a penny-pincher. His father Hendrik was a barber, but switched to supermarkets after the Depression reduced his clientèle, opening Meijer Grocery in 1934, where he kept prices low. The father-and-son duo launched Meijer Thrifty Acres in 1962; the store is believed to be one of the first to offer "one-stop shopping;" it sold food and general merchandise under the same roof. Today, Meijer is known to drive cars with exceptionally high gas mileage. He also wears inexpensive suits bought off the racks of his stores and prefers to stay in budget motels when on the road.

06) Richard Kinder

$2.9 billion

Country: United States

The former Enron president left the firm in 1996, claiming he was uncomfortable with its "asset-light" strategy. He then bought the Enron pipeline business with college friend William Morgan and later acquired more pipe from ConocoPhillips, ExxonMobil and Shell. This year, Kinder took the pipeline firm private for $22 billion with management and investors; he renamed the firm Knight Inc. He believes in efficiency, flying coach on company business.

07) David Cheriton

$1.4 billion

Country: Canada

The Stanford professor introduced students Sergey Brin and Larry Page to venture capitalists at Kleiner Perkins Caufield & Byers; he was rewarded with a large chunk of Google stock. Cheriton prefers to ride his bike, though he also drives a 1993 Honda Accord or a 1986 Volkswagen camper. Lives in the same Palo Alto home he bought in 1981. He flies commercial, and cuts his own hair rather than wasting time and money going to a barber.

08) John Caudwell

$2.2 billion

Country: U.K.

The former auto-repair shop owner and Michelin engineer entered the cellphone business in 1987. Caudwell sold his 85% stake in the Caudwell Group last year. An avid sportsman, he used to bike 14 miles to work. He cuts his own hair because, he says, going to a barber is a waste of time, and buys his clothes at affordable British retailer Marks & Spencer. Eschews three-figure bottles of wine when a two-figure bottle will do just as nicely: "I don't need to spend money to bolster my own esteem."

How Much To Spend on a Car?

How Much To Spend on Car?

Many people don’t know that how much money to spend for buying a car? Well, wealthy people are those who spend less than 1% of their total wealth behind buying a car. This might sound crazy to you but this is true. Wealthy people never spend more than 1% of their Total wealth behind buying a car and that’s why they are wealthy.

Say for Example, if someone’s net worth is $ 4,00,000 than he should not spend more than $ 4,000 behind buying a car. Now, you will ask that, How can anyone buy a car for just $ 4,000? Well, if you can’t buy a new one than buy a 5 years old car from your money.

Now, you will say that But Most of the people are not doing this. Well, and that’s why they are not rich.

Now, you will ask that, what about those luxurious cars which everybody of us is watching in our city? Well, the owners of those cars are just the high income but low accumulator of wealth. They just look like rich and cool but in reality they are not rich.

And those who are really rich have their net worth so much high that the luxurious car they are using is just 1% of their total net worth.

Most of the High Income people buy a car that is worth of as high as 40% of their Total Net Worth. They compromise with their wealth to buy a luxurious car. And that’s why they struggle financially for the whole of their life.

Now, tell me that, How much your car worth of in comparison to your wealth?

Frugal American Millionaires

Frugal American Millionaires

Let us today talk about American Millionaires. 3.5 Million households are millionaires in America among 100 Million Households. That means only 3.5 % people are wealthy. The main reason why these people are millionaires is because they are frugal. Means they live well below their means and they spend less than they earn.

These millionaires have never adopted the amrican hyperconsumer life style and that’s why they are millionaires. Because of their frugal life style, they have more money left at the end of month for savings and investing.

Here are the top 5 ancestry groups of american millionaires.

01) Russian
02) Scottish
03) Hungarian
04) English
05) Dutch

Out of them, Scottish people are most frugal american millionaires. On an average, Scottish annual household Income is less than $ 1,00,000 but still they are the second wealthiest people population wise. All credit goes to their frugality.

Scottish people never spend much money behind automobile vehicles. They prefer to drive second hand vehicle to save money. And on the top of this, their Adult children are financially independent.

And that’s why their adult childern don’t drain their wealth to live. While the adult children of most of the high income group of people are not financially independent and that’s why they drain the significant amount of their parents’ wealth to live on.

While american millionaires know the importance of financial education and that’s why they teach their children since their childhood that how to become financially independent and thus their adult children do not require any financial help from their parents.

Scottish Frugality

Scottish Frugality

Here are the Top 5 ancestry groups of american millionaires.

- Russians
- Scottish
- Hungarian
- English
- Durch

Yes, Russians are the most wealthy people in America and the second rank goes to scottish people because of Scottish Frugality. The reason why scottish people are this much wealthy is because they are several times more frugal than any other groups in USA.

The surprising thing is that, Scottish are among the wealthiest group of people even though they are not ranking even in top 5 groups of high income group of people. More than 60% scottish have annual household income of well below $ 1,00,000.

No other ancestry group has this much high level of concentration of millionaires from such a low level of average annual income.

And the reason behind this wealthy is that, because scottish people are frugal. They live in the environment of self created financial scarcity. And they live well below their means which allows them to save and invest more than the people who live high status life style.

Another reason is that, Scottish people are very frugal when it comes to buy a car or any other automobile vehicle. They don’t believe in spending behind luxurious automobiles and that’s why their wealth is preserved.

Another great observation is that, the adult children of scottish people are financially independent having good level of financial knowledge and thus unlike the children of high income group of people, they don’t drain the wealth of their parents to live. This is another main reason why scottish people are wealthy.

Most of the high status and high income group of people suffer financially because their wealth is eaten up by their financially dependent adult children while scottish don’t have this problem.

Thus, Frugality is the key of becoming wealthy.

Affluent Auctioneers

Affluent Auctioneers: More than 35% Auctioneers worldwide are Millionaires

According to one survey, more than 35% Auctioneers worldwide are Millionaires. Now, this is a blue collar profession and still it has this much amount of millionaires in this profession. Even Doctors & Lawyers communities don’t have as high as 35% of millionaires.

Than What is the reason behind this statistics? Well, let us discuss it today.

- Auctioneers are more frugal than other professionals such as doctors, lawyers, actors & IT Professionals. Thy live below their means and their per head average spending is much much less than the people earning the same but from other professions like doctors and lawyers. And this frugality pays in the long run. In the long run, Auctioneers accumulate more wealth than other professionals.

- The average millionaire auctioneer spends only 60% of the amount urban/suburban millionaires allocate for housing.

- White Collar professionals are more likely to own luxurious automobiles and other high status toys such as expensive watches, clothes and jewellery.

- One interesting fact about auctioneers is that, Auctioneers hold a higher proportion of their wealth in appreciating assets than do other high-income group people and they invest in those assets only in which they have expertise.

Now, this is really eye opening fact. What most of the people in the world do is, they rush to invest in those assets class about which they know very little to nothing. But what these auctioneers do is, they invest in those asset classes in which the have expertise. Such as if some auctioneer has expertise in Vintage Guitars than he/she will invest in Vintage Guitars only and like that.

Investing in the assets in which you have expertise is a key to become rich and wealthy over the time.

- The Annual Income of Auctioneers fluctuate very well and that’s why they keep good amount of emergency fund in their bank accounts. And this uncertainty in the earnings make them more money savvy.

Thus, all of the factors combinely explain the fact that, why this blue collar professionals are wealthy…!!!

Frugal Wife & Wealth Accumulation

According to the several studies done on the millionaire households all around the world, it is observed that frugal wife has direct relation with your wealthy state. Frugal wife means a wife who manages your and your house’s Personal Finance well. She is one who is expert in budgeting, financial planning, accounting and Investing.

These are the skills to manage money and accumulating wealth. Most of the people will never become wealthy in one generation if they are married to people who are not frugal.

Remember that to become wealthy, you have to accumulate assets. You can not become wealthy by spending a lot. You can become wealthy only by accumulating more. If you want to become wealthy than you have to spend less and save more. A typical wealthy person is one who has more assets in his possession.

Most of the people believe that, rich are those who spend a lot, buy expensive clothes and drive in expensive cars. But in reality rich are those who have accumulated more Assets in their lives. And even though they stop working today, they can live for the rest of their lives on their wealth without downgrading their lifestyle.

Wealthy people have frugal wives. Their wives are experts in managing their house hold budget very well. And they are expert in basics of Financial literacy, accounting and Investing.

And this is the reason why rich people accumulate more wealth than others. Frugality is the key of Financial Success in your life. So be Frugal…!!!

Are You Frugal?

Are You Frugal?: Here is a simple mind twister to check that weather you are frugal or not? Because if you are frugal, you are going to be wealthy…!!!

Let me ask you the 3 very Basic Personal Finance Questions which are related to your Wealth.

01) Were your Parents Frugal?

02) Are You Frugal?

03) Is your Spouse More Frugal than You Are?

If you answer all of the above questions “Yes” than it means that you are wealthy today or going to be wealthy over the time surely. And if you answer any one or all of the above questions “No” than I am sorry but you are not on the path of becoming Wealthy.

Just see that, How Simple the above 3 questions are? If you understand the above 3 questions, not only you can become wealthy but you can predict anyone’s Financial future. Say for Example, suppose if you want to see the Financial future of your friend.

Now, for this you don’t need to go with any Astrologer to predict his Financial future. You just observe the above 3 phenomena. See that person’s Parents, The Friend himself/herself and his/her Spouse. See their Money Spending Habits.

If you find them frugal means if they live well below their means and spend less than they earn and diver the surplus money towards accumulating assets than that person will surely become financially free and wealthy in the future. This is as Simple.

The last question is highly significant. If someone is wealthy than not only he/she is frugal but his/her spouse is more frugal than them. People broke if their spouse is not frugal. If anyone spouse is not frugal or over consumer than it will severely reduce the chance of becoming wealthy for that couple.

Most of the people around this world never become wealthy in their lifetime if they are married to people who are wasteful. A couple can not accumulate some serious wealth if if one of its members is a hyperconsumer.

Thus, Frugality is very very important for your Financial Success.

Now, just tell me that, Are you Frugal or Not?…!!!

Millionaire looking for Wives

Which kind of Wives Millionaires looking for?

Do you have the answer of the above question? Well, I know that what you are thinking. You must be thinking that, millionaires are looking for beautiful wives. They are looking for bollywood or Hollywood actresses right?

But well, this is not true. The only characteristic millionaires are looking in their wives is their Financial IQ and money management skills.

Yes, This is true. According to the survey done on 3.5 million millionaire households in USA, the survey founds that more than 80% of the millionaires are looking for this characteristic in their wives. This is because the main aim of millionaires is to preserve their wealth.

According to the survey, wives of millionaires are more money savvy than their millionaire husbands. For Millionaires, preserving their wealth is on the top priority. The Millionaires look for frugal wives means those who spend less than they earn.

The Millionaires know the fact that, the wealth has to be accumulated. You can’t stay wealthy by spending more. But you can be wealthy by accumulating more assets. And that’s why true millionaires are in search of wives who are financially savvy and excellent at Personal Finance, Budgeting and Investing.

For millionaires, Financial Freedom is more important than showing just the high status. This is because, to show the high status, you have to compromise with the wealth. Rather than true wealthy people are looking for buying some real assets which appreciate in its price over the time and make them more richer.

Frugality: Do Wealthy Have a High Consumption Lifestyle?

Frugality: Do Wealthy people Have a High Consumption Life Style?

Popular media channels, News papers and TV Channels show that, wealthy people live a high consumption life style. They set the mindset in the Financially uneducated people that, buying expensive items is normal behaviour for affluent people.

These financially illiterate people are led to believe that the wealthy have a high consumption life style. They learn from the media that hyper spending is the main reward for becoming affluent.

So Who are these Financially illiterate people? – Well, they are doctors, lawyers, IT professionals and many other high income producing groups.

Well, of course these people are highly literate academically but their financial literacy is ZERO. And that’s why they think that, wealthy people spend more. Thus, to look cool and rich, they also spend more and consume high status clothes, watches, motor vehicles and foot wares.

But the reality is different. In reality, truly rich and wealthy people live Frugal. They live below their means, they spend less than they earn. They never spend money behind buying high status showing items. In fact, they accumulate wealth. They believe in accumulating appreciating assets such as stocks, bonds, gold, real estate, mutual funds and businesses which tend to appreciate in its price over the time.

The rewards of really wealthy people are more intangible than product-related.

These intangible rewards are financial independence; discipline and being an excellent family provider. Financial Independence is the great reward the true wealthy people have. Thus, Frugality pays off in the long run. Un fortunately, the Frugal life style is not glamorous and that’s why it doesn’t get media attention.

While on the other hand, High spending, consumer life style is glamorous and that’s why it gets lots of media attention and coverage. So Be Frugal and live like True Wealthy…!!!

How Much a Millionaire Spend for a Suit of Clothing?

What’s the Most a Millionaire ever spent for a Suit of Clothing?

Suppose if I ask you this question than you MUST think in your mind that, the answer should be between $ 2000-10,000 right? Because after all these people are millionaires so they MUST have expensive choices right?

But well, if you have guessed the above figures than you are absolutely wrong. Because Millionaires don’t spend this much amount of money behind clothing. According to one survey on over 3.5 Million American Millionaires, more than 50% of Millionaires have never spend more than $ 400 behind their clothing…..!!!!

Isn’t it shocking & eye opening?….

And about 45 % Millionaires spend less than $ 1000 behind their expensive clothes. Only less than 5 % Millionaires have spend between $ 2000-10,000 behind their clothes. This is because Millionaires believe in accumulating wealth and not in showing high status life style. They don’t care how they look. They only care that, How many Assets they own?

Than who buy all those expensive & Luxurious Brand Clothes? Well, The Upper Middle Class. The High Income but low wealth accumulator group of people buy those expensive clothes and not the real rich and wealthy people.

Yes, This is true. Most of the Luxurious Brand suits and clothes are consumed by upper middle class people who fall into high income category. These are the people who are the low accumulator of wealth and consume all of these luxurious clothing brands. This is because they just want to look cool and rich.

Showing High Status is the main focus of High Income group people mainly Doctors and Lawyers. Now, Just ask your self that, How much you spend behind clothing? Like a Millionaire or like Upper Middle Class?….!!!!

The Lifestyle of a Typical Millionaire

What do you think that, What should be the life style of a typical millionaire? Well, I know that what you are thinking in your mind. You think that, A Typical Millionaire lives in expensive home, drives expensive cars, wear expensive clothes and eat expensive food and beverages….Right?….

In fact, most of the people in this world have the same picture of a typical millionaire in their mind. But well, Let me tell you that, This is entirely a false picture. Yes, A Typical Millionaire don’t live like this. Now, you will ask that, than what about those people who live such a life style and hyped by TV & Media?

Well, most of these are High Income but low wealth accumulator group of people. And even though they are millionaires, they amount for less than 2% of the Total Millionaires in the world. Majority (More than 98%) of millionaires in this world don’t live like that.

Than How a Typical Millionaire Live? Well, a typical millionaire live frugal. Because he knows that, wealth has to be accumulated. You can’t be wealthy by spending more. You can be wealthy only by accumulating more. A Typical millionaire knows the fact that money spend behind expensive clothes, foods, beverages and motor vehicles is worthless. Because sooner or later these things will become worth less.

But money spend behind accumulating wealth becomes worth in the future. Money spend behind acquiring assets will give more benefits in the future than spending behind buying expensive cars. Thus, A Typical Millionaire’s Life style of hard work, discipline, sacrifice, thrift and sound investment habits has made him a millionaire today.

Now, you will ask that, than why Media & TV Channels don’t show the life style of a typical millionaire to us? Well, The reason is simple. Because the life style of a typical millionaire is not a glamorous. And if something is not glamorous than how will it attract the media attraction?

And on the top of this if a Media tells openly that, these people became millionaire by spending less than who will again come to watch that channel again? Who likes to spend less?….. No One….!!

This is why Media people don’t show the life style of a typical millionaire….!!!

Frugal Living: Media Hype

Frugal Living & Media Hype

Have you ever seen that the media hyping the frugal life style of real rich and wealthy people? Well, No. In fact, Never. Media will only highlight the lifestyle of those people who spend money lavishly. And that’s why now most of the people in our world started believing that, if you don’t show your money, you don’t have it.

But What is the reality than? Well, the reality is that, people who spend lots of money are in reality, High Income, low wealth accumulator people. They just look cool and rich but in reality they are not rich. If today they stop working than they can not maintain their same life style for even a year only.

While true wealthy people are those who live frugal and suppose today if they stop working than also for the rest of their lives, they can maintain the same level of lifestyle from their current wealth. Than why TV & Media don’t hype these true wealthy people?

Well, because their life is not exciting. They have enough accumulated wealth but their life style is not exciting and adventurous and TV and Media channels have to show glamorous life style to their watchers otherwise nobody would see their TV Channel.

Most of the people who build wealth are hard working, thrifty and not at all glamorous. These people live well below their means. They don’t believe in showing high status. They only believe in accumulating wealth. They believe in collecting appreciating assets. Showing High Status is not the top priority for these people but Financial Freedom is their top priority.

So now, you decide yourself that, Which kind of life do you want to live? A High status life style at the cost of wealth or Financial Freedom & frugal life style?….!!!!

Why Frugal Life Style is not Popularized?

Why Frugal Life Style is not popularized by Press & Media?

I have already told you in the previous articles that, Frugal Life Style is the key to successful Wealth Building. Now, you will think that, if this is true than why don’t we see such people living frugal on TV and News Papers?

We see sports stars & Celebrities spending millions of dollars every year behind their lavish lifestyle on TV and news papers. But we have never seen any person living frugal on TV and Media channels. Why So?….

Well, the reason is simple because Frugal Life style is not exciting at all. Press promote only high spenders and lavish life style people because it’s exciting to see high spending and lavish life style. But Press will never promote Frugal Life style because there is nothing exciting in Frugal Life style.

If some celebrity is 30 years old and earn US $ 5 Million a year. And his Net worth is US $ 1 Million today than that celebrity is technically a millionaire according to the definition but according to my definition, he is not a wealthy yet. Because according to my equation, of someone is earning US $ 5 million per year than his net worth should be US $ 15 Million.

Just think that if today that celebrity stop working than how many days he could live on his $ 1 Million Net worth?….. Not even a 3 months right?….. Because his annual income is $ 5 Million and still he has accumulated wealth of just $ 1 Million. What this shows? This shows that, he is spending more than $ 4 Million a year behind his celebrity life style.

Now, How many days this celebrity could survive on $ 1 Million Net Worth? Probably 3 months or Maximum 6 months but not more than this…!!!!

Frugal Frugal Frugal

What are the 3 basic words which are the foundation of Wealth Building?

Frugal Frugal Frugal

Well, yes, This is true. Frugality is the key of wealth building. Frugality means you live well below your means, it means that you spend less than you earn. Frugality is the only characteristic by which wealthy people have build their wealth.

If you spend less than you earn, than and only you can divert your rest of the money towards Long term Investing and than and only you can become rich. What most of the people in this world do is, They spend more than they earn. Means they use Credit Cards, take car loans, personal loans and many other types of loan…etc… And thus, when they get a paycheck every month, a significant portion of their paycheck goes towards paying those EMIs and Credit Card Payments.

And thus, at the end of the month, nothing left behind for long term investing. But truly rich and wealthy people are frugal. They live a frugal life style. Means they only spend behind what they need and not what they want. And thus, at the end of the month, they have lots of money left behind for long term savings and investing.

According to the survey, as high as 15-20% of Annualized Income of true rich and wealthy people go towards long term investing and building some serious wealth. And that’s why these people can never ever go broke. Because 15% of annualized Income going towards long term investing means you will remain financially free for ever until you do this.

Thus, there are several advantages of being frugal. Remember, the Foundation of Great Wealth Building is – Frugal Life Style. So Start becoming Frugal from today and get wealthy over the time…!!!

The Foundation of Wealth Building: Frugality

Most people in this world judge other people by their choice in foods, beverages, suits, watches and motor vehicles. For them, superior people have excellent tastes in consumer goods. But well, the reality is different.

The reality is that, everyday people trade their Wealth & Financial freedom for these consumer goods. To look cool and rich, people buy these high status items. And thus, they fail to build serious long-term wealth. This money could have gone towards the long term investing. The Compound interest is so powerful over the time that it multiplies your wealth in a breath taking manner.

For the most of the people in this world, superior people are those who have expensive car, food, clothes & beverages choice. But real wealthy people don’t spend much money behind these things because they know that, These are depreciating items. They will loose its value over the time. But instead of that, why not to accumulate Assets which appreciate over the time? Such as Stocks, Bonds, Gold, Real Estate, Mutual Funds & Businesses?

True wealth people know the fact that, wealth has to be accumulated. You can not be wealthy by spending more but you can be wealthy by accumulating more. Typical wealth people have accumulated so much of wealth over the time that, suppose if today they stop working than also they can maintain the same level of life style for the rest of their life.

So I advise anyone that, please don’t judge anyone’s financial status from food, beverage, watches and motor vehicle choices. But instead see that, How many Assets that person has accumulated. By checking the Assets of anyone, you will have a clear picture of his/her Financial Status…!!!

Review: Moveme.com – A Great Business Idea

Review: Moveme.com

Recently I visited the site Moveme.com. I find it very interesting and that’s why i thought that I should share the information about this site with the readers of this blog.

Well, Moveme.com is a London based company. And it’s main mission is to provide you all kind of information and resources about everything when you move to your new home. Moveme is an independent company but works in collaboration with many other UK base companies such as Royal Mail, BT, Virgin, British Gas, EDF energy, Pickfords and many more so that these people can manage the transfer of your services to your new home and request quotes for moving services.

Moveme has won following 2 awards also in the year 2007.

One is the Award of “Best New Business 2007” and the other award is from Yahoo people’s choice award 2007 and Yahoo Innovative Find of the Year 2007.

So How do Moveme Make money?

Moveme.com is completely FREE to use for the users. These people have tied up with other basic service providers. So whenever, you ask us for a quote or ask to be set up with a new supplier, that company pays to the Moveme a small referral fee. This doesn’t affect the rates you pay, in fact you’ll probably pay less as these people negotiate special discounted rates with many of our partners. And they don’t favour one company over another.

Over all, Moveme.com is a great Business Idea. These people provide you virtually every kind of services that you need while shifting your Home. Here are those Services.

- Removals
- Gas & Electricity
- Phone, Broadband & TV
- Change of Address
- Solicitors
- TV License transfer
- Phone
- Water
- Van Hire
- Rental advise, Mortgages
- And Many more services….

My Opinion -

In My Opinion, Moveme.com is a great service. It is the service for those people who value each penny. Using services like Moveme is the Best Example of Frugality. Just think that, How much time, money and efforts you can save if you find all the home moving information and resources under one roof and that is also FREE of cost. Thus, Over all the moveme.com is a great Business Idea…!!!

How much does an Average Millionaire spend on Car?

How much Does an Average Millionaire Spend on Car?

Well, you are going to be Disappointed……!!!!!

According to the study done on literally thousands of Millionaire household in USA, the study shows that more than 85% of the Millionaires spend not more than 1% of their Total Net worth behind buying a car.

So it means that is someone has a net worth of $ 1 Million than he will buy a car worth not more than $ 10,000 and if someone’s net worth is $ 10 Million that he will buy a car not more than $ 1,00,000. This stats applies to 85% of the Millionaires in USA.

In fact, according to the study, many millionaires drive even a second hand car. And several millionaires drive a car that is more than 5 years old model. Than what’s the logic behind buying a second hand car?

Well, Because the real millionaires think that the car is a depreciating item. And they only spend their money behind accumulating appreciating assets only such as stocks, bonds, gold, mutual funds, businesses, real estate…etc… Another logic is that, Millionaires think that a newly bought car will loose more than 60% of its value within first 4 years from you buy. So instead of buying a new car, why don’t buy 2-3 years old car because the previous owner has already suffered a great financial loss.

Now, you will ask that, than who are those people who drive these expensive cars? Why there are so many expensive cars there in any major city? Well, these are basically upper middle class people also known as Consumer Class. These are not really rich people. These are the people who spend more than they earn. These are the people who can buy a car as high as 90% of their Net Worth. These are not actually rich people. They just look rich because they have bought a luxurious car with borrowed money (Car Finance).

So understand that, who are the true millionaires in the economy and you will understand that which car they drive and how much they spend behind it…!!!