I have heard repeatedly that despite the poor economic situation we have been faced with for several years now, that there are more millionaires than ever before in history. There is even a group of 180 members called Tiger 21, where you have to be worth at least $10 million. Oh how nice it would be to belong to a group such as this one. The annual fee for continued membership is $30K. I do not know what benefits are afforded them for that amount, and Icertainly don't fault them for being rich, but I could think of many life changing ways to use the money. It is my understanding that they only spend 3% of earnings to cover day to day costs, but these are people who's mortgages and cars are paid off, so it is easy to live on the 3%, but not to many of the rest of us have the luxury of having these items paid off. Their philosphy on this matter is that it is most important to preserve than accumulate. Again, easy enough when much of what you have is already paid off. I also understand that they say the equivalence of four years of earnings is not sufficient when determining how much life insurance to have, but was not able to learn how many years they feel would be sufficient.
What can be taken out of this information? Spend wisely and pay off debts as soon as possible. Look at spending and saving habits, for instance: it doesn't make sense to have money in a savings account paying less 5% and owing on a credit card charging 12%. A large number of people say the money in the savings account is there in case of a "rainy day", but remember the credit card can still afford you the monies needed for the "rainy day" but in the interim, you are paying less on it since you have reduced the debt.
No comments:
Post a Comment