Become a Millionaire in 10 Steps
Many people aspire to become a millionaire but many are not prepared to put in the necessary effort and hard work to achieving the task. In a world where being a billionaire is now the prominent goal for the rich, becoming a millionaire is a real possibility for many average people and it really comes down to good financial management while taking simple calculated risks.
Becoming a millionaire can become a reality simply by first reading and learning how to make it happen. Then using the knowledge you have learned and adopting an appropriate mindset. The rest of the journey comes down to taking action to achieve your goal.
Believe in the goal of becoming a millionaire. You should believe that you deserve to be a millionaire. The reality is that money creates opportunities both for yourself and for others. With more money, you can help other people just as much as you can help yourself. You will have greater opportunities to help others through charity donations, mentoring, creating projects that people can be a part of and even providing jobs if you own your own business.
Believe in you and do not undervalue yourself. Decide what you plan to do with your time once you have accumulated a million dollars. When you know the answer then you can reset your mindset immediately and begin following your passion.
What is your motive for wanting to be a millionaire?
Is it really your top priority to become rich? This is important. You must focus completely on the desire to become a millionaire. Do not try to juggle too many priorities. Choose carefully and be content with your choice.
Don’t confuse the financial freedom of being a millionaire with being a shopaholic. A shopaholic’s image is the antithesis of a true millionaire. Most millionaires have a frugal demeanor and stand ready to earn money on invested capital whenever the opportunity presents itself. They keep a careful eye on the money they do have while constantly looking for ways to grow it. It is usually the less wealthy, lacking in ‘wealth-building’ ability who focus solely on spending their wealth away.
Many people who want to be rich, act rich but are not rich. Spending one’s wealth without continued investment and consideration for sustaining income generation will result in wealth destruction.
A millionaire does not need to have a mansion, a Ferrari sports car, diamonds and fancy clothing. These are images of glamour, not necessarily manifestations of contentment. These material trinkets are mere distractions that can prevent you from focusing on what matters in life. Becoming a millionaire isn’t the answer to all of life’s problems
The stamina to build wealth
It takes a healthy stamina for good wealth-building practices to become a millionaire. Making money and good decisions that create more money in your life requires that you practice healthy savings and investments strategies. Keep saving and investing continually and take good care of your wealth. It is your wealth that will provide you with the energy and resources needed to keep going with your commitment to becoming a millionaire. If you neglect your wealth and allow yourself to be overwhelmed by stress, fatigue, doubts and resentment, then you are far less likely to succeed.
Be tenacious. Success requires the ability to keep on saving money continually. There will be plenty of opportunities as you try to find the best ways to create your first million. You must be prepared to make sound financial decisions for success.
Self-esteem and self-confidence are essential traits to help you on your way. The more money you save the more confident you will become. It becomes a part of who you are. Self-confidence is really all about the value of your wealth.
Examined your motives for wanting to become a millionaire. Whatever you’re doing to become richer should create value for those around you. Eliminate negativity and focus your attention on commitment to these principles.
Thinking about becoming a millionaire begins the act of planning. After this, it’s time to take action. Live within your means. Whether you choose to follow suggestions about going into business, living within your means is an integral part of accumulating wealth.
Look at what you need, not necessarily at what you want when deciding on business opportunities. There will always be things people need and they need them to be done well. Choose a business that provides what people really need and be prepared to put in the effort to make your products and services either the best, the most price efficient or the most unique.
Find a mentor you can admire and seek advice. Look for examples of already-made millionaires. They can be found in several places, even online.
Active decisions for passive income sources
Familiarize yourself with savings. Begin by opening a savings account purely for keeping aside money and add to it regularly. This should be separate from your expense account which you use to pay bills from and it should preferably be one that pays the highest interest rate possible.
Having a savings account is one of the many ways where you can put your money to work for you. Your initial deposit of money grows as you make additional deposits and earn interest. Open other types of accounts, including accounts like IRAs, 401k’s, CD’s, Mutual Funds, ETF’s and Investment Stock Accounts.
Savings requires good self-discipline. Spend time working on any bad habits that take away from your self-discipline. Focus on what you can accomplish by saving.
Buy stocks of companies whose products and services you use or purchase regularly. One of the best ways to invest in individual stocks is through a monthly investment savings plan. However before you choose to buy stocks, read carefully the company’s financial reports to really get to know their financial situation. Do your own due diligence – check for past records of accomplishment first before you invest your money. Remember buy stocks as if you were buying the company itself-which is actually what you are really doing. Blue chip investments may be slower and less exciting than other stocks but in the long-run, they’re sounder.
Buy mutual funds and index funds (ETFs)
Mutual funds and index funds are investment where you own the securities (stocks, bonds, cash) within the entire fund. With funds, you are pooling your money with other investors and diversifying your investment. When you are done reading this article and other books about becoming a millionaire. Get up and take action.
Know your destination before you start out on your journey. Begin with your end goal in mind. If your goal is to make $1 million then write it down, put it in front of you where you see it every day. You will achieve the target you are aiming for only if you can clearly visualize it.
Get emotionally associated and connected to why it is important for you to accumulate a million dollars. Visualize your life and what it will be like when you have the million dollars. Think of all the good you will do with the money. Then think of how lousy you’re going to feel if you don’t achieve your goals.
Hammer out an action plan. Write down as many practical ideas as possible that you can begin implementing right away.
Discover your inherent abilities. Analyze your strengths that are of unique value. Plan and implement a strategy that immediately begins adding to your asset value. Look for ideas to increase your earnings while reducing your expenses.
Becoming a millionaire is definitely within reach of those who start young and develop the right habits. And anyone, at any age, can develop the traits that increase wealth and decrease debt.
You can have money or you can have possessions, but you cannot have both early in life. Debt restrains one’s ability to accumulate wealth. People who buy liabilities will end up making payments forever. Spend less than you earn and live a modest lifestyle. Some people have spent their prosperity for the next 15 years and they’ve done it all on credit.
People who choose for wealth building over buying material things know their money can be put to better use by buying assets and not liability. Buying an expensive car with stretched out payments of 5 to 6 years is buying a liability. Buying an asset that produces an annual income and that will appreciate in value over time is the better choice for those who desire to become millionaires.
Being a millionaire is a relative term. The goal for many people is financial independence. That’s when your cash flow from investments and earned income is greater than your expenses.
The most important reason people do not achieve financial independence is because they don’t have a written financial plan. Sitting down and drawing up a financial plan is the most important thing you can do to get started on the road to great wealth.
Becoming a millionaire is not difficult and there are many ways to achieve great wealth. Some people do it through real estate, others start their own business, while others simply work regular jobs with normal working hours. You don’t have to be wealthy to begin with nor do you have to earn six figures to reach your goal.
Many people who earn well over $100,000 and all they have to show for it is a large mortgage payment and a luxury car that is depreciating fast. These are people earning a large income buy buying liabilities.
There are a few basic step that need to be taken to become a millionaire:
The more money you make, the faster you will become rich. The median income is between $33,000-$60,000. Getting married will provide dual incomes. With two people in the household, your income is double but your expenses typically remain the same.
Live Within Your Means
It doesn’t matter how much money you make, you must spend less than you earn. This does not mean that you should crimp your lifestyle, just simply live reasonably. Buying things and acting like a millionaire will only empty your bank account and give people an impression that you are rich. Purchasing a home that you can comfortably afford and drive a modest vehicles that suit your lifestyle will contain your expenses and give you the possibility to save and invest most of what you earn.
If you earn a reasonable income and you live within your means, you will have money left over to save. Most people pay bills, buy things, and then whatever is leftover they try to save. That is not a good way to save. Pay yourself first. Whether it is $300 or $1,000 a month, think of your savings as a priority that needs to be paid and do it regularly. Start saving every month and you need to make it happen automatically. You’ll be earning interest on your savings.
Invest wisely is going to help you reach your goals much faster. The best investment advice is to simply invest regularly and in a diversified portfolio. If you do this you’ll be on your way to building wealth.
Remember that real estate should be an important part of your investment portfolio. Like any investment, real estate will make you money over time. Diversify your investments between a retirement savings account, stocks, bonds, mutual and index funds, CDs and put your money to work. It doesn’t matter how you invest, just invest monthly while keeping costs down. This will let you increase your money exponentially over time.
You can become a millionaire by simply buying a single stock and holding onto it for many years. Just like you can buy a $250,000 home and have it double in value every 10 years. Do not take on too much risk. It is better to diversify and not put all of your eggs in one basket. So develop an investment strategy that will provide steady growth over the years..
Stick With Your Plan
Practice these four steps, continue doing it and stick to your plan. Always be on the lookout for ways to increase your income. Look for opportunities in job promotions or changing employers for increased income. Increased income will mean you can save even more. Additional savings and investments will grow your wealth even more quickly.
This is simply the process that you can use in order to reach your goal, whether it is in 5 years or 50. If you follow a few basic steps you can do it.
The reality is that getting your portfolio to the $1 million mark is not as difficult as you may think. You only need to understand how to operate the three basic levers of wealth building. The amount of time horizon, how much you can save, and how you invest your savings.
The slightest change on one or two of these levers can dramatically affect your ability to create $1 million.
How much time you have will dictate the formula you use to accumulate wealth. If you can’t save as much or invest as much as you want to, then save as long as you can and invest longer.
If you can save $10,000 to $15,000 a year from 25 years of age with an invested rate of return of 10 percent, you will accumulate $ 4,829,748.00 (saving $10,000 annually) and $7,247,500.00 (saving $15,000 annually) by age 65. So simple is it!
But even if you can only save a modest amount of $250 per month — like the typical worker in a 401(k) for 40 years at a 10 percent rate of return, you will accumulate $1,449,500.
The single most important thing you need to know about building wealth is to save consistently and let your investment compound for as many years as possible. Time is the exponential factor that will allows your savings to multiply beyond your wildest dreams.
Sensible savings and investments in conjunction with eliminating wasteful spending practiced over a life time will accumulate great wealth. A home, cottage or second home will increase your asset value tremendously. And a lifelong tax free retirement savings plan will provide for a secure retirement.
Make friends with people who share similar interests, goals, ideas and values as yourself. It will make your journey to millions more pleasurable.
Think wise, think big, think practical and think about the steps and sacrifices you’re going to have to take to get where you want to be.
Only use credit cards to pay for your purchases if you pay your balances in full when the bill arrives. Never carry a balance that charges you interest.
Work on ways to establish good credit.
Make wealth creation something greater than wealth accumulation. Create your own dynasty. Make it fun.
Think about why you want to become rich, what exactly you want to accomplish and what lifestyle you want. Make your plan specific and personal so that it matters to you. Set a time frame for your desired goals.
Plan and define what you want. Take action and evaluate often to check your progress.
Money represents value. Acknowledge the understanding that wealth creation is investing to increase your personal value.
Read and study for your course of action. The more knowledge you accumulate the more you will grasp the possibilities and the more beneficial your potential rewards.
Invest wisely with the goal of earnings potential and avoiding losses. This is particularly important when you start. The older and more experienced you become the less risk you are likely to take.
Avoid neglecting the source of all wealth, take care of your health.
Do not talk about how much wealth you have achieved. Thieves and scammers will be attracted to you.
Don’t lose out on all the important things in life such as relationships and social interactions. Money has no value without these.
Earning money on investments is not guaranteed. But saving money regularly is something you can always do.
Many people are looking to get rich and a most reliable method is to build wealth at a moderate pace by increasing your income, saving aggressively, and investing smartly in dividend stocks, index funds, and other asset classes. It’s not just about frugality or beating the market. It’s about increasing and diversifying your income as you earn more money. Build passive income alongside your active income to increase your wealth, independence and security.
This site will provide you with helpful information that can increase your investment knowledge as you build wealth.
Begin today this exciting journey and become the next millionaire.
Here’s a quick list of must read books:
Rich Dad, Poor Dad by Robert Kiyosaki
The Cashflow Quadrant by Robert Kiyosaki
The E-Myth Revisited by Michael Gerber
The Internet Business Manifesto by Rich Schefren
The Missing Chapter by Rich Schefren
Good to Great by Jim Collins
The Millionaire Next Door (2004) by Thomas J Stanley
Stop Acting Rich… and Start Living Like a Real Millionaire (2009).
The Gone Fishin’ Portfolio by Alexander Green
Read more >>
“60 Minutes To Getting Rich.” Robert Kiyosaki.
Secret Millionaires Mind – Attracting Wealth