When Richard Evans was a little boy, his father fell down a stairwell, shattering the bones in both of his legs. The injury left his dad unable to work for a year, forcing Richard’s parents to sell their home and squeeze their family of 10 – two adults, eight children — into a three-bedroom rental.
Richard vowed to become wealthy during that tough year. He wanted to give his children the financial security that he never had.
He didn’t know it at the time, but he had just taken the first of five steps towards wealth. The first step is the simple act of choosing to be wealthy. Believe it’s possible; commit to making it happen.
Evans’ book, The Five Lessons a Millionaire Taught Me, describes the steps that lead to wealth:
#1: Decide to Be Wealthy
“A dentist friend once told me: ‘Those who don’t think about their teeth (early in life) are those who later in life spend the most time thinking about them.’ It’s no different with money.”
… “the people I know who are the most obsessed with money are not millionaires … (they) are the ones who are living paycheck to paycheck” …
“To be in great fiscal health is very much like being in great physical health: it allows you to do more and be more, and it permits you to live your life free of constant pain and bondage.”
#2: Take Responsibility for Your Money
This step involves knowing three things:
- Know how much money you have. What’s your net worth?
- Know where your money comes from. Track every tip, bonus, and interest payment. Record the small amounts that normally slip through your fingers, like checks you get for your birthday, dividends from your index funds, and money you get from rewards credit cards.
- Know where your money is going. Your car, for example, doesn’t just cost the sticker price; it also costs insurance, repairs and registration fees.
#3: Keep a Portion of Everything You Earn
He recommends keeping a minimum of 10 percent of your regular paycheck, plus 90 to 100 percent of your side income.
#4: Win in the Margins
“The most money I’ve made in my lifetime was on a side project,” he said. “(But) it wasn’t my first venture. It was my fourteenth.” In other words, keep your day job, but always look for ways to earn more on the side.
#5: Give Back
Generosity feeds the soul. Give financially to good causes that have a proven track record of properly handing money. In addition, teach others the principals of becoming wealthy. It’s through teaching that we learn.
Should I Read This Book?
This is a quick read, with less than 100 pages of large font. I finished the book in one sitting.
The lessons are basic, and they’re designed to be inspirational / motivational rather than informative. In other words, this book is designed to get a financial novice excited about the possibilities that lay ahead.
This Book is For You If: You want to give a gift to someone who isn’t interested in money. This is a motivational book for beginners.
This Book is NOT For You If: The intended reader is an “advanced student” of money or is looking for specific, actionable information, such as how to set up a Roth IRA or diversify a portfolio.
The 5 Lessons a Millionaire Taught Me is only $5.98 on Amazon, with free shipping. Check it out!