Billy Florence: Building A Strong Foundation

There is a difference between the way most rich people (millionaires) and others think about money. There is a certain millionaire mentality that most millionaires have. Yes, there are those who are rich because it was given to them or they won the lottery but most millionaires earned their money by working hard and working smart and being good with their money.

There is an interesting article on CNNMoney.com that gives some advice on what to do if you had an extra $5,000. It talks about building a strong foundation and you do different things with the money depending on where you are. It gives examples of the temptations to go buy a new plasma TV or a trip to Vegas. If you read the book The Millionair Next Door you learn that the average millionaire will resist the urge to go blow the money on a new TV. Of course, they may eventually have the plasma but only after they have built a good solid foundation. If you have credit card debt, it would make much more sense to use the $5,000 to pay off some debt rather than buy a new TV!

Here are some questions that the article asks when thinking about what to do with an extra $5,000:

1. Do you have a cash cushion?
2. Do you have credit-card debt?
3. Do you own a home?

Read the article on CNNMoney.com to learn more:

http://money.cnn.com/2006/04/12/pf/where5k_starting_moneymag_0605/index.htm

Billy Florence - Team DCI