Millionaire Newlyweds

Posted by: Michael S. | Dec 11,2007

This post , by a self-professed “Millionaire Mommy Next Door,” will make you alternately jealous and curious.  It’ll make you jealous like one of those real estate commercials where people talk about making $10,000 a month.  You can too!

But there’s some very good information there as well.  The fact is that making money is as much about saving money as reaching a financial windfall.  People just want a high quality of life and don’t like to cut corners, even if it’s bad news for long-term savings.  It seems contrary to logic for some people to be living below their means if they’ve got sizable savings in the bank.  Can’t we just dip into those savings?  A new BMW is only $350 a month with good credit.

If they don’t dip into savings, they use their credit card to purchase things they couldn’t afford otherwise.  The most important piece of advice Millionaire Mommy gives is to pay down credit card balances in full every month.  Interest is lost money.  You may be comfortable on your new leather couch, but you’re going to have to spend exorbitant fees for it.  This does not mean you can’t use your cards, but you should have reserve cash on hand to pay off the bills in full.  However, this is not a license to dip into savings either: you need to spend reasonably, keeping your monthly balance at a minimum so it doesn’t drain too much from your savings account.  

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