to three simple rules:
FIND ADDITIONAL SOURCES OF INCOME
“My whole quest is to use my mind and my intellect to think of ways to build wealth other than just working for 30 years,” says Glass. Not content with a $95,000 annual salary, Glass opened his own consultancy firm, which earned $100,000 in both 2001 and 2002. He put $47,000 of those earnings toward his mortgage and another $80,000 into a Vanguard mutual fund. He intends to use the remaining $73,000 to buy a rental property, which will give him another source of income.
“I think the best chance for me to grow wealthy at the youngest age possible is to continue to run my business and to buy real estate property under market value, then improve the property and use it for rental income until I’m ready to sell,” Glass asserts.
SEEK FINANCIAL ADVICE
Glass educates himself by reading books on investing and money management. His favorites include The Millionaire Next Door by Thomas J. Stanley (Pocket Books; $14.95); The 9 Steps to Financial Freedom by Suze Orman (Crown Publishing Group; $13.95); Rich Dad, Poor Dad by Robert T. Kiyosaki (Warner Books Inc.; $16.95); and The 7 Habits of Highly Effective People by Stephen Covey (Simon & Schuster; $14.00).
LIMIT INVESTMENT FEES
Glass changed his mutual funds from Putnam to Vanguard because Putnam charged a 5% fee for mutual funds and for using their services. “I believe in the principle of indexing and minimizing fees, and I didn’t like the idea of giving up 5% of my money every time I bought mutual funds,” he says. “Life is a constant battle between everyone trying to get money out of your pocket and trying to keep the money you have and make it grow.”
With his higher salary, the purchase of a new rental property that can appreciate in value, and nine years left to invest before age 40, it appears that Glass’ formula for becoming a millionaire is a success.