Five Lessons A Millionaire Taught Me About Life and Wealth, Summary

By Bruce Firestone | Business Coaching

Jun 26

By Richard Paul Evans (2005)

Review (from Amazon):

When Richard Paul Evans was twelve, his father, a building contractor, shattered both his legs. With no insurance, no income, and eight children, the family was destitute. At that difficult time young Evans was introduced to a kind multimillionaire who taught him the five secrets of wealth. Today, Evans credits those lessons not just with bringing him wealth and success but with bringing him freedom and opportunity in a world where financial slavery is ubiquitous.

In his signature motivational voice, Evans interweaves those influential lessons with personal stories from everyday people. He explains that money should not be the preoccupation of our lives. Rather, if we follow the five principles, we will be free to focus on God, family, and relationships — the true nourishments of life.

Wise and compelling, The Five Lessons a Millionaire Taught Me About Life and Wealth can be read in a single sitting and will leave you with a new view of what it means to be rich — and convinced that you, too, can build wealth. The Five Lessons a Millionaire Taught Me About Life and Wealth is endorsed by financial consultants, churches, schools, and marriage counselors.

Lesson 1: Decide to Be Wealthy

For the most part, whether to be wealthy or not is your choice. Most people never decide to be wealthy… and never become wealthy. Choice is the beginning of all journeys or the longest journey is the one where you never take the first step…

Lesson 2: Take Responsibility for Your Money

Know how much you have—where it is coming from and where it is going plus what it is doing in the meantime. If you can’t control your costs (live below your means), you’re sunk.

Lesson 3: Keep a Portion of Everything You Earn

Pay yourself first. Save a minimum of 10% of your ongoing salary, use 20% for (good) debt—like mortgage debt (not bad debt like credit card or personal debt that sticks to you) and spend 70% of what you take in. If you have a side gig, try to save 90% of those earnings. Remember that an investor beats a saver every time, so invest (most) of what you save. After your mortgages are retired, you’ll now have 30% (up from 10) to build your nest egg and make further investments.

“Don’t invest what is left after spending, spend what is left after investing,” Warren Buffett (paraphrase—he actually said: “Don’t save what is left after spending; spend what is left after saving.”)

Lesson 4: Win in the Margins

How to win in the margins? Start a PB4L (personal business for life) by looking for ways to make extra income–you will discover that there are opportunities all around you. Invest in real estate and build wealth over time.

“Ninety percent of all millionaires become so through owning real estate. More money has been made in real estate than in all industrial investments combined. The wise young man or wage earner of today invests his money in real estate” Andrew Carnegie, billionaire industrialist

There are four key mindsets that characterize a wealth builder:

1. The millionaire mentality carefully considers each expenditure—is it really necessary, is it possible to get the same effect without using money or using less of it, is this expenditure contributing to my wealth or taking from it, ie, what’s my ROI (return on investment) from this expenditure, is this an impulse or planned purchase?

2. The millionaire mentality believes that freedom and power are better than momentary pleasure. Delay gratification and understand the danger of debt. Never borrow money (unless it is good debt).

3. The millionaire mentality does not equate spending with happiness. Equating spending with happiness is the first step toward self-destruction.

4. The millionaire mentality protects his/her nest egg (iron reserve). Successful nest eggers do not invest what they cannot afford to lose.

“There was a time when a fool and his money were soon parted. Now it happens to everybody,” Adlai E. Stevenson

Lesson 5: Give Back

Ultimately, the most enjoyable use of money is helping others. Giving will expand your circle of life. Hoarding money will make you smaller. Life is not just about money. It is about love, family, relationships, trust and spirituality.

“Live so that even the undertaker mourns your passing,” Mark Twain

For real estate investment and business coaching that allows you to take care of yourself and your family for 3-generations, please contact—

Bruce M Firestone, B Eng (civil), M Eng-Sci, PhD

Real Estate Investment and Business coach

Century 21 Explorer Realty Inc broker

Ottawa Senators founder

1-613-762-8884

bruce.firestone@century21.ca

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-MAKING IMPOSSIBLE POSSIBLE

-FREEDOM VIA REAL ESTATE INVESTMENT AND PB4L, PERSONAL BUSINESS FOR LIFE

-FEHAJ, FOR EVERY HOME A JOB

-MAKE YOUR HOME WORK FOR YOU, INSTEAD OF YOU WORKING FOR IT

-HIGHER ROI NOT JUST FOR OWNERS AND INVESTORS, BUT FOR TENANTS, GUESTS, VISITORS, NEIGHBORHOODS, COMMUNITIES, TOWNS, VILLAGES, AND CITIES TOO

Image source:
https://www.amazon.ca/Lessons-Millionaire-Taught-About-Wealth/dp/0743287002/ref=asc_df_0743287002/?tag=googleshopc0c-20&linkCode=df0&hvadid=335005884666&hvpos=1o2&hvnetw=g&hvrand=14525757938544082748&hvpone=&hvptwo=&hvqmt=&hvdev=c&hvdvcmdl=&hvlocint=&hvlocphy=9000683&hvtargid=pla-574255046532&psc=1

Other source:
http://www.orgsites.com/ga/goshenreig/five_lessons_excerpts.pdf

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About the Author

Bruce is an entrepreneur/real estate broker/developer/coach/urban guru/keynote speaker/Sens founder/novelist/columnist/peerless husband/dad.

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