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These 3 Simple Strategies Will Better Your Odds Of Becoming A Self-Made Millionaire

If your dream is to become a self-made millionaire, how do you go about doing it?

Nina Zipkin

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It’s certainly possible that your company could become a resounding success and net you several million in a sale. But that’s not likely to be the case, even if your business is a consistent earner.

We caught up with three wealth management experts – Gemma Godfrey, founder and CEO of digital wealth manager Moo.la; Garrett Gunderson, founder and chief wealth architect at Wealth Factory; and Manisha Thakor, director of wealth strategies for women at Buckingham and The BAM Alliance – to get their best advice for getting yourself on the right financial track and staying there for the long haul.

1Follow the money

This may seem like a basic suggestion, but when it comes to growing a nest egg, the fact of the matter is that many people don’t put in the time and thought necessary to monitor where their money is going. From the start, Godfrey says it is important to understand the full nature of your financial position and obligations.

“[You need to ask] what assets do you own vs. what debt you have, such as a mortgage,” she says. “What income do you generate vs. what are your outgoings?”

Related: 5 Millionaire Traits That Will Help You Get To The Top

Gunderson agrees, noting that especially for entrepreneurs, even though they can be incredibly savvy, they do run the risk of falling into a mindset of always believing that they can make more money and not making the long-term plans needed to not only remain solvent but increase their wealth.

“They get on the proverbial treadmill, always trying to sprint,” he says. “[But] they could just keep more of what they make by stopping the leaks in the hull, and dealing with some of their personal finances.”

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2Set achievable goals

Another old chestnut that really works? Don’t spend more than you make or, perhaps more realistically, don’t live beyond your means. Thakor says that self-made millionaires start saving as much money as they can as early as they can.

That manifests itself as buying a smaller house or waiting a bit longer to trade in your car for a new one. And it means that “you spend only when you think it makes good sense, not to keep up with everyone else,” Thakor says.

Godfrey and Thakor both say that setting an investment timeline and plan, while figuring out how comfortable you are taking calculated risks, is key to later financial success. But when it comes to stocks or bonds, what if you have no idea where to start?

Thakor has a simple approach that you can use as a baseline. “Invest 80 percent in stocks and 20 percent bond in your 20s, 30s and early 40s and then shift to 60 percent stocks, 40 percent bonds from your mid 40s onwards,” she says.

“You keep investments highly diversified and your costs low.”

Related: 7 Reasons Why You Must Become A Millionaire

3Stay informed

Gunderson says that there are many small things that entrepreneurs may not know about when it comes to optimising cash flow, such as money they could be losing to taxes.

“There are thousands of dollars a month that business owners are losing out on, simply because they are overpaying interest, or they haven’t structured the loans properly,” he says.

“They don’t know how to improve their credit score to negotiate better interest rates. That’s money that [they could put] towards building that wealth, without taking risks and without burning themselves out.”

Related: 15 Ways Millionaires Manage Their Money That Make Them Richer

While this may seem like a lot, you don’t have to go it alone. But when you do look for financial help – and not only during tax season – Thakor says that it’s imperative that “you seek financial guidance only from advisors who practice under the fiduciary standard – which legally requires that they put your interest first,” she says, “vs. those who operate under the suitability standard – which simply says investment recommendations must be in your interest but could benefit the advisor more than you.”

This article was originally posted here on Entrepreneur.com.

Nina Zipkin is a staff reporter at Entrepreneur.com. She frequently covers media, tech, startups, culture and workplace trends.

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Personal Finance

6 Ways To Develop A Millionaire Mindset

Chasing money has remarkably little to do with getting rich.

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If you truly want to have a million dollars, you must first be and think like a millionaire. By doing so, you will attract the necessary resources to you.

So, you want to become a millionaire entrepreneur? You’re not alone. Many dream of leaving their job and becoming their own boss, enjoying the various millionaire lifestyles we watch on TV. But there’s a difference between those who dream of becoming millionaires and those who do. And it begins and ends with mindset. If you don’t develop that mindset, you will continue to spin your wheels, working just as hard, but never going anywhere.

Developing a millionaire mindset requires you to stretch your thinking. Start by developing the following six attributes.

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Personal Finance

4 Ways To Become A Millionaire Even When You Start With Little

It costs nothing to take advantage of the limitless opportunities online.

Timothy Sykes

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The hardest part of becoming successful is getting started to begin with. But despite the challenges ahead of you, there’s a way to become a millionaire when starting with little. I’m going to show you four reasons why you can become a millionaire with just a small investment.

1. First focus on learning, not big gain

Education is your greatest weapon. Focus on learning in the beginning. Don’t make the mistake of focusing on making huge gains in the beginning. Learn everything you can because this is how you build the foundations for long-term gains.

Related: 21 Choices Millionaires Make That You Aren’t Making But Should Be

They say that if a millionaire goes bankrupt they’ll nearly always be able to get it back. And that’s because they might have lost their money, but they have the knowledge of how to get back to where they need to be.

2. You can learn loads about any topic online

online-learning

I’m grateful for the internet. It’s the single biggest library in the world. You’re reading this article right now and you’re acquiring knowledge you wouldn’t have been able to acquire 40 years ago.

Use the internet to its fullest extent, whether that’s through reading books, browsing articles or watching video tutorials. Set some time aside every day to learn something online. It could be a video series or a favorite blog.

When you get into the habit of learning regularly you’ll find that you advance much faster.

3. Focus on the niche you love

These days you can learn about anything and target the niche you’re passionate about.

This is what I was able to do with penny stocks. I found a gap in the market and provided knowledge to people who wouldn’t have otherwise being able to access this sort of information.

You can do that with absolutely any niche. When you find a niche you’re passionate about and you use the reach of the Internet you start to make huge gains.

4. Prove your expertise by creating free content

Your reputation as an authority is the new business card. There’s a reason I created a penny stock guide and made it free for all. You may have already seen ads for it on social media. The way to succeed with little is to create a reputation through your content.

Related: How To Become A Millionaire, Explained In 1 Minute

It’s the gateway to success because through free content you start to build relationships with others who value your work. And from there everyone gets richer.

You can do lots with a little

The days when you needed a huge investment to become successful are long gone. These days you can do so much with just a little. Find what you love, advance your knowledge in that area, and create a product that fulfills a need. Finally, work on building up relationships through portraying yourself as an authority on your subject.

Combine everything together and you can accomplish anything.

This article was originally posted here on Entrepreneur.com.


Related: 13 Habits Of Self-Made Millionaires You Could Adopt Today

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Personal Finance

10 Tips To Become A Millionaire This Year

Becoming a millionaire requires changing your mindset and implementing some changes.

Murray Newlands

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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.

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