Wealth Tip of the Day for Sunday, October 15, 2006

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Hi this is Diane Kennedy. Today is Day 14 of the 30-day Coundown to the release of my new book, The Maui Millionaires™ that I co-wrote the book with David Finkel. The book is scheduled to be released on November 3, 2006, and from now until then I’ll be checking in every day with a Wealth Tip excerpt from the book, written either by myself or by my co-author, David Finkel.

Wealth Tip 14: Take the Frugalatarian™ Route

There is one more track to become financially free; we call it the Frugalatarian™ route to financial freedom. Basically this is the path taken by people who save and conservatively invest 20-30 percent (or more) of their income over their 20-40 year working career, while at the same time minimizing their living expenses.

While this isn’t the path that Diane and I have chosen to become financially free (neither of us wanted to wait 20+ years to become financially free, nor do we like living so frugally), it is a viable path to become financially independent.

If you don’t like the idea of building a business, and if becoming an investing expert who can tap into forced appreciation deals isn’t for you, then this third pathway may just be the right one for you. By the way, this path is the one that is most accepted in our culture. Haven’t you heard the saying, “work really hard, live on less than you earn, invest the difference in smart investments, and you’ll be able to retire financially independent and secure”?

Because both Diane and I have used and believe in the other two financial tracks, building businesses and investing, we won’t have too much to say about the Frugalatarian™ track, although a careful reader will be able to apply a number of the Wealth Tips to this financial plan.

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