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David says the Egglestons will be well on their way to becoming millionaires if they pay themselves first and invest half of their additional income every year. After taxes, that comes down to about $3,000 that the couple can apply towards their 403b retirement plan. With an annual interest rate of 8 percent, the Egglestons will earn $375,000 in 30 years:

Extra income = $8,000
Extra income after taxes = $6,000
Invest 1/2 annually = $3,000
30 years at 8% = $375,000

Dan and Sally are on track to earn an additional $8,000 this year and that means they've grown their income by 10% in less than 60 days, but they can't stop now. "Summer's going to be very, very profitable for us and we're going to pay off at least three more [credit cards] in the next year," says Dan.

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FROM: The Debt Diet: Part 5
Published on January 01, 2006
Please note: This is general information and is not intended to be legal advice. You should consult with your own financial advisor before making any major financial decisions, including investments or changes to your portfolio, and a qualified legal professional before executing any legal documents or taking any legal action. Harpo Productions, Inc., OWN: Oprah Winfrey Network, Discovery Communications LLC and their affiliated companies and entities are not responsible for any losses, damages or claims that may result from your financial or legal decisions.

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