Rule number 1 for self-made millionaire.

I want to stress on the word self-made millionaire. This mean, in order to be a millionaire by our own effort, we must remember this number one rule. Life below our means. To be clear, we must live moderately. I believe many people will be against me. Most people believe that millionaires life in a luxuries life, drive a fancy sport cars and allow their young wife shopping 24 hours non stop. People, our perception had been distorted by the media.

Yes, only minority millionaires live this way, and they never can sustain their wealth. Now, we don't want to be that person. We work hard for our money and we want to protect it. We want to grow and sustain it. We want our kids and grandchildren also do the same. That is what we want to be. Meanwhile, there are three types of people who tend to live in a luxuries lifestyle and shortening their wealth period. Remember, we don't want to be in this group. I believe, if you belong to one of this group, you are lucky, it's time to get out of it.

Group number one is what we call the false rich.Most of them, they are from the professionals and high executives who earn a very high salary, but spend as much as what they earn. Sometimes more. These people, they drive a latest luxury car, fly in the first class and dine in the finest restaurants. They appear to be very rich and successful. But the reality, they are very weak in accumulate their wealth and they have a very few positive cash flow assets. Basically, they just one to two paycheck away from broke. I promise, I don't want to be in this group in my life.

Group number two is the people who inherited their millions. This bunch of lucky bums are people who don't have to break their sweat to earn money. They are people who win a lottery. They are people who married to a millionaire. They are people who inherited them from their millionaire's parent. This people, to be honest, they don't understand the value of money. They spend like there is no tomorrow. Most probably, within a few years, they will be broke. Again, I promise not to be in this group.

The last group is the people who are the highly talented celebrities. These people are the ones who earn their millions not because their financial intelligence but due to their talent in singing, acting or sports. Due to the millions come easily to them, they tend to spend all of it. Unfortunately, no matter how much they earn, eventually they may wind up broke and in debt. Some of the examples are like Mike Tyson, MC Hammer and Michael Jackson. You can google up and read their financial story. I believe, you also don't want to be in this group.

In a nut shell, we must live our life below our means. Don't try to showoff your wealth because once you be like that, there is no turning back. You will always be in that trap. So this is when people said prevention is better than cure. Always be moderate in our life because that is the key to be a millionaire. I believe, it is okay to sometimes we spends a little more than usual, but always keep in mind to watch the cash flow. I know my father belong to the first group, and I learn my lesson. :)