So you want to become rich? You know that in order to become wealthy you need to put aside some of your income into something that will create more money and compound over time. When you break it down, that’s really how easy it is to become a millionaire. That’s all great, but you might be asking yourself, “How much should I save from each paycheck in order to become rich?”

The standard answer is to save 10% of your income. That’s easy enough, right? If you have a 401k at work, just have your employer put 10% of your money in a mutual fund so it is deducted before taxes and you’ll be on your way to making your first million. If you’re doing this, that is great, but is 10% really enough?

The 10% rule is just a very general rule of thumb, but you might want to strive to save more. For one, the more you save, the more money you’ll have and the faster you you’ll reach your financial goals. But there’s more to it than just the speed that you create your wealth. There are some very important issues that need to be considered as you map out your financial plan.

When figuring out how much I should save, I like to work backwards in time:

1. How old will I live to be?
2. What kind of lifestyle do I want to live during retirement?
3. What unexpected costs could I incur during retirement that I should be prepared for?
4. What age do I want to retire at?
5. How much money do I want and need to get through retirement when adjusted for inflation?
6. How many years of investing do I have before I retire?
7. What are my average returns on my investments?
8. How much capital do I have invested now?
9. What can I comfortably save each month now?
10. Is this enough money to reach my goals with my current timeframe and investment returns?
11. What can I do to produce more money to enhance my contributions or returns?

This allows me to clearly identify my goals and what I need to contribute on average in order to get there.

Although your income may increase as you get older, so do your expenses, so it’s important to not think you will just play “catch up” later in life. Secondly, time is the critical element in the wealth formula, as the longer your money is invested the more times it can compound and double in value. With that in mind, it is important not to put off your savings, as it can be costing you the luxurious early retirement you dream of.

Millionaire Money Habit: While the 10% rule for savings is a good starting point, it is more of a general guideline rather than a rule of thumb. Consider what your financial goals really are and outline a clear plan on how to get there. When you break it down into a simple monthly savings plan, achieving your goal becomes virtually effortless.

LifeLock is the identity theft insurance program with the popular commercial of the guy, Todd Wallace, who is so confident with his service that he gives out his own personal Social Security number. Apparently he drove through New York City with a big billboard truck displaying this personal information to advertise his identity theft prevention and credit fraud program.

When you sign up for LifeLock, they can do a couple of things for you that are very valuable:

1. They stop junk mail from pre-approved credit card companies, which means you instantly reduce your chances of a dumpster diver getting your personal information.
2. Before any loan or credit is extended, the lender must call you to verify that you are in fact authorizing the loan.
3. The WalletLock program will help you cancel and replace any lost or stolen credit card, and recover any lost funds.
4. The eRecon program scans the internet for any unauthorized or suspicious use of your personal information. This includes use of your Social Security number, credit card numbers, driver’s license number and even your email address. Since it watches the internet’s “black market,” they protect you from your personal information being sold or traded online.
5. LifeLock’s TrueAddress program watches for any change of address activity with the Post Office and immediately alerts you if any activity is discovered. This prevents thieves from hijacking and stealing your mail.

What happens if thieves beat the LifeLock system?

You are protected up to $1 million in loses by the company’s guarantee. If for some reason their system fails and someone successfully steals your identity, they will spend up to $1 million in resolving the issue and recovering your loses. Even in the event that your wallet or purse is stolen, you are protected by this guarantee.

Do I really have to pay for this service to be protected?

Not really. You can contact the three credit reporting bureaus yourself and request that they have all lenders contact you for any loan activity, but you have to renew every three months and there is no guarantee that this will prevent fraud from occurring.

It’s quite possible that the clerk issuing a merchant credit card, for example, disregards the note to call you before approving the line of credit. This is where LifeLock is a tremendously valuable program because no matter what, you are backed by their $1 million guarantee to restore your financial information and recover any loses.

What do others think?

I searched the message boards and other social network sites, and found these comments from LifeLock customers:

I’ve been a Lifelock member for about 3 months and the biggest benefit is seeing the amount of junk mail I receive shrink. I used to get about 10 credit card applications/week…now I receive 1, maybe 2 tops.

I signed up about 6 months ago when my credit account was compromised. They have been obtaining regular credit reports on my behalf and placing alerts on my credit. Also, nobody can open an account in my name, not even me, unless I personally approve on the phone number I have provided. Basically, when I apply for credit, it will not be instantly approved, unless I receive the call then and there to approve it. I have to add that I applied for credit and was declined because I was unavailable to approve the application.

I have used Lifelock for my family for the last 8 months. My husband’s laptop was stolen and it contained all our bank statements, logins to credit card sites, etc. So I signed us up and feel like we’re protected just in case. It’s hard to say if it’s worth it until you need it and I would hate to have someone steal my identity and then say I wish I had signed up. Hind sight is 20/20. It is true that you can perform many of the functions that Lifelock includes for yourself at no cost. But, I’m not that organized to remember to request a fraud alert from all 3 credit bureaus every 3 months like clock work and make sure I order my free credit report from all 3 agencies every year. They keep track of that for me and I’m willing to pay for it. I also like their million dollar guarantee.

When you get started with LifeLock, be sure to type “9″ in the promotional box. This will get you the membership for just $9 a month. Go sign up for LifeLock here.

Millionaire Money Habit: Identity theft is the largest white collar crime, and with the growing number of electronic transactions and the world wide availability of the internet makes it easier for scammers from anywhere in the world to rip you off. Spend a few dollars a month as an insurance policy to prevent big headaches that could potentially damage your credit rating. Sign up for LifeLock now.

Does money and happiness really go hand in hand? There actually have been a number of studies that aimed to determine if money does indeed bring happiness, and research supports both sides of the argument. Some results show that as income increases, responsibility increases and money problems never actually go away. In fact, they may even become worse. Other studies claim that money allows people to eat and live healthier, which reduces stress and increases happiness. Then there is research that claims that money does not bring happiness, but it is actually happiness that allows you to be more successful and increase your income.

Regardless of what the research shows, whether or not money brings you happiness is what you make of the situation and how you handle your money. What is happiness after all?

Some people couldn’t be happier living with their spouse in a cabin in a small town with one used car, their old furniture and a small fishing boat. Others need a garage full of cars and a private jet to feel that same level of satisfaction in life.

Whether or not money brings you happiness completely depends on your attitude towards money. How it makes you feel, how you manage it, and how you treat others with money determines what money can do for you. Consider these questions:

1. What does it feel like when you can’t afford something?

2. How do you feel when you can treat yourself or others to something special?

3. Do you worry about money and your future?

4. What do you think of people who are rich?

5. Do these feelings differ towards people who flaunt their money?

6. Why do you feel being wealthy would make you happy?

Whether or not money brings you happiness has everything to do with your attitude towards money. If you dislike people who are rich because they have things in life that you can’t have, turn those thoughts around. If you don’t like people who have wealth, will you be able to live with yourself when you become wealthy? Instead of being jealous or hateful towards rich people, be happy for them, admire them, and imagine what it will be like when you become wealthy.

For those who allow money to bring them happiness, it can be a wonderful thing. It not only allows you to enjoy the things you love to do most, but money allows you to express yourself and get more out of life. It can allow you to:

• Say “I love you” with romantic nights out on the town or thoughtful gifts.
• Have the freedom to spend time with your family.
• Travel the world and experience unimaginable adventures.
• Have the opportunity to become educated and develop new skills and talents.
• Have the chance to spend your time doing what you love most.
• Give back to those in need.
• Have the ability to choose your own course in life.

Money can bring happiness, but it is easy to allow it to bring you guilt, stress and dissatisfaction. Money can drive people further into debt, make them mean spirited, and unable to realize a sense of achievement in life.

It is important to realize that money in of itself will not bring you happiness, but it can be a tool to help you achieve the things that you value most in life. When you identify what it is that you truly value and align money with those thoughts and ideas, you can realize ultimate happiness.

Don’t get money confused with being the answer to your problems or it will just create more problems and turn you into a person you dislike. Instead, think about the things that mean the most to you. If money were no object, what would you do? How would you spend your time and with whom? What would be most important to you? Find out what brings you the most happiness and let that drive your desire to achieve financial freedom.

Millionaire Money Habits: Becoming a millionaire may not necessarily mean having a million dollars in the bank. Decide for yourself what happiness means to you.