Become, and remain, wealthy.

People become, and stay, millionaires by budgeting and controlling expenses. Being frugal is especially important—saving money instead of spending it on unnecessary items will go a long way in improving your financial situation. Most importantly, be sure to set financial goals for yourself to reach; this will keep you on track.

1. Set and follow an annual budget.
   Give yourself, and your family, a budget for the year—this budget should cover food, clothing and shelter. This should also include birthday and holiday gifts, babysitters, day-care fees, financial advice, club dues, vacations, insurance, etc. To get an idea of how much your family spends currently, keep a monthly record of each and every expenditure made over the period of a few months.

2. Set daily, weekly, monthly, annual, and lifetime goals.
   For example, you may want to increase your savings by 2% by the end of the month, or you may want to leave an educational trust fund for your grandchildren behind.

3. Be frugal.
   Save money wherever you can—refrain from spending money on unnecessary items such as expensive suits or watches. If you have a problem with spending too much, cut back on all elements of consumption by a minimum of 15% for the next year or two.

4. Minimize your realized income and maximize your unrealized income.
   Your realized income is taxable, whereas your unrealized income is not. So, invest and build up your assets.

5. Never purchase a home that requires a mortgage more than twice your household’s total annual realized income.
   Living in a less costly area will also help you spend less and save/invest more.