Millionaire. It’s a title that plenty of us would love to have. But, is that actually feasible?
Believe it or not, becoming a millionaire is a goal that can be achieved this year. In my life, I have been a millionaire several times. Most of the time before my 30s I gambled it away on cars, homes and living a life I had no reason to be living.
Despite blowing millions, the process to becoming a millionaire has been consistent over the years. If you follow these eight priceless pieces of advice, I can guarantee you that eventually you will become a millionaire. Here’s to making this happen this year!
1Develop a written financial plan
One of the main reasons why someone can never become a millionaire is because they haven’t written a financial plan. Developing a financial plan forces you to take action, instead of just talk. It also guides you in making the right decisions in order to achieve all of your dreams and goals.
Financial planner Scott D. Hedgcock says that “when planning for a more secure future there are two inputs that are indispensable:” how much money you have and how much money you spend.
“The basic point I want to stress about these two inputs is that they are absolutely fundamental to all financial planning regardless of how large either of them is,” he says.
“In my experience, the biggest difference between those on the right path vs. those on the wrong path was the amount of time and effort they put into devising a plan for their finances.” When you take the time to create a plan and see it through, “is the one thing all financially successful people have in common.”
Hedgcock also says that “the success experienced by those who do this occurs regardless of their relative wealth. Likewise, the failure of those who do not follow a plan is unrelated to their wealth.”
When creating a financial plan, consider the following:
- Focus on what matters most and don’t obsess over the past.
- Focus on what you control by listing your known expenses first in your budget, and then with the income leftover you should list the discretionary categories.
- Focus on your future by anticipating how much your future self will need to survive.
2Focus on increasing your income
“In today’s economic environment you cannot save your way to millionaire status,” writes Grant Cardone, who went from being broke and in debt at the age of 21 to becoming a self-made millionaire by 30. “The first step is to focus on increasing your income in increments and repeating that.
“My income was $3,000 a month and nine years later it was $20,000 a month. Start following the money, and it will force you to control revenue and see opportunities.”
“The best way I know to become a millionaire is to put the power of compound interest on your side. By giving your money more time to compound and keeping your rate of return as high as possible, you greatly increase your chances of reaching a seven-figure net worth,” writes Brian Feroldi on The Motley Fool.
“Of course, earning a high return on your nest egg is easier said than done, as many factors to create that return are outside of your control. However, all investors do have control over two huge factors that can put a serious drag on long-term returns: investment costs and taxes. If you want to become a millionaire, focus on keeping both as low as possible.”
Feroldi goes on to write that if you have “a RA through work, then any money you contribute to the account can grow tax-deferred, allowing your money to compound more quickly.” He also suggests opening up a traditional IRA.
You should use a broker or brokerage firm “that charges very little per trade – and not to trade too frequently.”
“If you want to become a millionaire, you need all the help you can get,” he says. “Making sure your investment fees and tax bill are as low as possible will go a long way toward helping you achieve your goal.”
4Increase your streams of income
After studying millionaires for five years, author Thomas Corley discovered that 65 percent of self-made millionaires had three streams, 45 percent had four streams, and 29 percent had five or more streams. This could include starting a side-business, working part-time, investments, and renting everything from your home to your car to household items.
5Automate your savings
If you want to become a millionaire, then you absolutely need to get into the habit of saving by contributing to your traditional IRA, and an emergency fund that’s been placed in a money market. However, the way to make this is by automating your savings.
This will automatically withdraw a percentage of your salary and place it into your contributions without you ever seeing it. It’s suggested that you should put 10 percent towards investments and 5 percent towards savings.
6Upgrade your skills and knowledge
“Read at least 30 minutes a day, listen to relevant podcasts while driving and seek out mentors vigorously,” writes Tucker Hughes, who became a millionaire at just the age of 22.
“You don’t just need to be a master in your field, you need to be a well-rounded genius capable of talking about any subject whether it is financial, political or sports-related. Consume knowledge like air and put your pursuit of learning above all else.”
7Live below your means and lay-off the credit
It’s widely known that the wealthiest people in the world are frugal. They don’t spend excessively on designer and luxury items. They use coupons. And, they’re known for living below their means by purchasing modest homes and vehicles.
They’re also known for keeping their debt under control by using credit sparingly. Take a cue from T. Boone Pickens, who only carries around as much cash as he needs for what he intends to buy.
8Associate with millionaires
“In most cases, your net worth mirrors the level of your closest friends,” writes Steve Siebold for Business Insider. This isn’t exactly a new philosophy. It’s been around ever since Andrew Carnegie embraced the Master Mind principle.
“Exposure to people who are more successful than you are has the potential to expand your thinking and catapult your income,” says Siebold. “We become like the people we associate with, and that’s why winners are attracted to winners.”
“The reality is,” he says, “millionaires think differently from the middle class about money, and there’s much to be gained by being in their presence.”
This article was originally posted here on Entrepreneur.com.
10 Tips To Become A Millionaire This Year
Becoming a millionaire requires changing your mindset and implementing some changes.
Becoming a millionaire may seem out of your reach, but it’s possible with the right attitude and guidance. The fact of the matter is your income can only grow as quickly as you do, so you need to change your mindset to achieve your goal of becoming a millionaire.
Once you have a millionaire mind, you can’t lose it, no matter what financial or business mistakes you make along the way. To get yourself there, you’re going to need some structure. To help you, I’ve outlined the top ten tips you should follow to become a millionaire this year.
If You Think These 5 Things, You’ll Never Get Rich By The Time You’re 30
Five common mistakes entrepreneurs make when starting a business and how to correct them.
Last week, I had lunch with a millennial who wanted some advice about a business he’s starting. After the usual small talk, we got down to discussing his business plan. Within a short time, it was clear that his business idea was great, his plan for executing was fairly solid and he had gathered together a strong team to help him make it happen.
So far, so good. But, to be frank, this guy has no chance of being successful with his current mentality. What it takes to be rich (or successful in any measure) has a lot more to do with your mindset than your ideas and plans.
From the time we started in business at the ripe ages of six and seven, our Grandpa Joe taught my brother Matthew and me many lessons about the details of running a profitable business. Over the years, we learned about how to create a business plan; how to market our products and services; and how to take care of customers, vendors and employees. All this knowledge has been invaluable to us in creating and running successful businesses. But, what our grandfather taught us about attitude and mindset trumps all other lessons.
Without calling out the specific individual I spoke with recently, below are five “hypothetical” attitudes that will get you nowhere in your journey to success – and the attitudes that should replace them.
5 Habits That Lead To Millionaire Business Success
You need the right habits if you’re going to succeed.
What do all millionaire businesspeople have in common? Well, a lot of things.
I found from a recent study that 80 percent of all millionaires still go to work every single day. They’re working people just like me. But, they have to keep themselves in work or it all grinds to a halt. So what are the habits you need to make your business a success?
Nothing is ever going to come easy. You can look at the likes of Steve Jobs and Bill Gates, as well as the other usual suspects, to realize that success didn’t come with their first venture. Many of them failed time and time again. It took patience for them to become successful.
I read an article recently about 36-year-old teacher Andrew Hallam who became a self-made millionaire on a teaching salary. But, in his spare time he invested smart and lived frugally.
It proves you don’t have to inherit lots of money or become an instant success to make a millionaire business.
You have to be dedicated to your craft if you’re going to become successful. Going back to Bill Gates again, he started his business in the back of his garage. Now that’s dedication.
It’s what I tell all my students. If they’re not dedicated to this, then they should leave. You need to be able to push through the barren periods if you’re going to reach the oasis of success.
3. Ambition and big dreams
Have you ever heard the quote, “Shoot for the moon. Even if you miss you’ll land among the stars”?
I take that to heart because even if you aim to become a billionaire and miss you still might be a millionaire many times over. Take the Wright Brothers as an example. Not content with creating a successful glider in 1902 they went on to create the world’s first airplane in 1903, making four brief flights in Kitty Hawk. It demonstrates the importance of dreaming big because you never know what you might achieve.
4. Learn from mistakes
Every good businessperson will mess something up. It’s inevitable. What’s important is how you learn from your mistakes over time. Do you adapt after making your mistakes?
Millionaire businesspeople always set some time aside to reflect. Then they create a plan of action for ensuring that it doesn’t happen again. Most failed businesspeople put it down to “bad luck.”
5. Focus on niches
This important! Try to take over a whole industry at once and you’ll inevitably get swallowed up by the competition. Start small and control your own niche before moving into another niche. When you master your small area, you can push on and expand.
You’ll be amazed at how much easier it is to expand after you master your own niche/audience first.
Do you have what it takes? That’s the question I always ask novice businesspeople. You need a plan and you need the right habits if you’re going to succeed.
This article was originally posted here on Entrepreneur.com.
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