GET REAL: Being Cheap Won't Make You A Millionaire

pennies

Photo: Larry He’s So Fine

It happens every time: Just when you think you’ll be able to scrape by this month, another tire goes flat or Roofus gets sick—again.You’re not alone. In fact, more than 75% of Americans live paycheck to paycheck according to The Money Conspiracy.

But if you think pinching a few pennies here and there will drastically secure your financial future, think again.

Hank Coleman tells us in his Budgets Are Sexy post, consumers will likely waste their money on something else if they, say, cut back on their cable bills:

I found out when I dropped my cable package a few months ago that I got incredible bored sitting at home, reading books, and simply watching old DVDs. I was saving a fortune initially, but then I started to go out to the movie theatre to see more movies or buying new releases on DVD. Taking my two children to the movies with me quickly racked up to $40 a trip to the local movie theatre if you include tickets, popcorn, and drinks. And, the movie theatre wasn’t the only suck on my wallet.

Cutting back on your monthly expenses only solves the situation temporarily. It won’t offer any solutions for the root of your problems. 

Instead, you should probably pick up more hours at work or take on another job, Coleman suggests.

The blogger mentions Robert Pagliarini’s book The Other 8 Hours, which points out that most millionaires in America are self-made and achieved their success by producing an income for themselves, whether by writing a book, inventing a software, or starting a business.

In fact, approximately 80% of millionaires in America are the first-generation kind, according to Money-zine. Most are immigrants who came to America with little to no cash, proving that hard work and/or clocking a couple extra hours at work will pay off more in the long run.

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