Who Can Become a Millionaire?

Anyone can become a millionaire when they have the right mindset or the desire to change theirs. Before you can see results, this is the most important step on which to focus.

However, you must be realistic. It can take years and extensive amounts of time before you see that 1 million dollars in your account.

Stop the negativity, allow yourself to dream, and follow the steps mentioned below.

About the Author

Bob Haegele is a personal finance writer who specializes in topics such as investing, banking, credit cards, and real estate. His work has been featured on The Ladders, The Good Men Project, and Small Biz Daily. He also co-runs Modest Money and is a dog sitter and walker.

Video

3. If you do have debt, don’t bury your head in the sand

Before looking for a quick fix to pay off debt, it’s important to take stock of the situation. 

Otherwise, you may make the mistake of creating new debts to pay off old ones.

Müller said that you should write down all the debts that you have. Then think of an amount that you would be able to pay each month and calculate, based on this figure, how many months it would take you to pay the debt off.

Müller recommended using half of your money to pay debts and saving the other half. 

Many would advise paying debt off before starting to save, but Müller disagrees.

“It’s about thinking like a wealthy person,” he said.

“Your wealth, however much it is, grows through saving,” he added.

The Secrets of Millionaire Investors The Ultimate Asset Allocation

My recommended asset allocation portfolio looks something like this:

  • 1/3 real estate
  • 1/3 equity (business value)
  • 1/3 cash (fixed income, bonds)

The above is from my book, which you can download for free from this link: The Kickass Entrepreneur’s Guide to Investing. 

In the above example, since the entrepreneur has so much equity in the business, I’m going to suggest that they shouldn’t invest additional dollars into the stock market.  Any extra cash should be invested:

  • Back into the business to grow the business
  • In investment real estate
  • As cash on hand (fixed-income investments, bonds)

5. Create multiple streams of income

Do you remember the saying, don’t put all of your eggs in one basket? The same goes when it comes to your income. The average millionaire has seven streams of income! By diversifying your income, you grow wealth faster and create financial security.

For instance, if you have a side hustle in addition to your day job, you have two streams of income rather than depending on one or the other. This is a smart money move because if you were to lose your job for some reason, you would still have some income coming in from your side hustle. You can even grow your side hustle into a small business if you want to.

Income streams consist of your main job, side hustle, passive income, investment accounts, interest from savings accounts, rental properties, and more. There are many ways to create multiple streams of income. Creating multiple streams of income is a sure way on how to become wealthy.

Keep in mind that while get-rich-quick schemes might sound attractive many of them are exactly that. Schemes.

So instead of trying a get rich quick scheme, work on creating multiple sources of income! Remember rich people find multiple ways to bring in money, especially billionaires!

4. Read and educate yourself

Wealthy people not only work dual jobs, they make time to read. But they’re not reading Stephen King or Danielle Steel.

They read educational and self-improvement books. Corley found that only 8% of low earners read educational or self-improvement books.

“Success requires growth, he wrote. “That growth comes from reading and educating yourself on a daily basis.”

Recent Posts

2. Don’t overspend

The simplest and surest path to wealth is to save money and invest it. It’s like planting an acorn and watching it sprout into a tree. The problem for millions of Americans is acquiring an acorn to plant.

A 2018 Federal Reserve report found that four in 10 adults would not be able to cover an unexpected $400 expense much less an emergency fund. The U.S. Bureau of Labor Statistics put it at 6%, the lowest level since the 2008 financial crisis.

If you barely make enough money to pay your bills and can’t save, the obvious solution is to make more money. That leads us to the next poverty habit.

2. Spend Intentionally and Minimize Costs

If you want to become rich, it’s important to minimize your costs and be more intentional with your spending. This is the second step because it should be one of the first things you do. Spending intentionally and minimizing your costs will require you to keep a budget.

In doing so, you can keep track of exactly how much you spend and where you spend it. Acuña recommends a checklist of how you will spend. “Develop a prioritized checklist for how you’re going to spend your paychecks when you receive them. This includes allocating money to debt reduction, savings, fun, emergencies, etc.”

Your goal should be to minimize costs as much as possible so you can put that money toward building wealth. Jeff Burrow, president and lead advisor at Sierra Ocean, said you should “ravenously find ways to limit your lifestyle costs and save 25% of your income.”

Explore: What Does a Financial Advisor Do and Should You Hire One?

10. Give Back

It is important to give back to the community. Thi

It is important to give back to the community. This leads back to the first point about adding value to the world around you. If you earn some money, give some back to a cause you believe in. This way, you are adding value to the world after having added value to yourself.

Another benefit of giving to charity is that people perceive you as a better person when you give to causes they care about. They are likely to trust you more when they see that you aren’t intent on hoarding the money they give you, and that doing so will benefit their community in turn. Of course, the tax benefits of giving to charity are also a great incentive to do so.

Being rich means something different to every individual. Some people are happy with a decent-sized home and a moderate-income job, while others want to be millionaires and billionaires. Regardless of where you feel you fall on the spectrum, these steps can help you achieve the level of wealth you want. Before you get started, though, make sure to sort out your current finances so your bank account is ready to expand.

4. Invest

The core principle behind investing is that you end up making more money than you spent. However, it is important to choose your investments wisely. There are plenty of places for you to sink your money into, but figuring out which one of these will result in you profiting is difficult.

Real estate is sometimes a good investment, but it is expensive. Investing in the stock market does not have to be expensive, but it can be risky and unstable. A 401K is a wise investment that you should invest in, but it can depend on how well the business you work for is doing. There are plenty of factors to consider when investing, so make sure you think about it rationally. Talk to experts or friends who are experienced in investing before making a decision.

Set Up a Budget and Financial Plan

This may not be the first time you’ve heard you should set up a budget, and that’s because it just works. When you first start budgeting, it can be a discovery process because you may not know where your money is going until you see it laid out in front of you. On an ongoing basis, a budget can hold you accountable for using your money the right way.

Make Your Money Work Better for You

The reason a budget is so powerful is because it doesn’t do just one thing. “Creating a budget and financial plan can help you save more money, understand your financial goals, and pay off debt faster,” Sohns said.

A financial plan is the next step; it should contain both short-term and long-term goals for everything you want to achieve financially. That can include paying off debt, increasing your income and investing. The idea is to make the steps challenging but achievable so you push yourself without setting yourself up for failure. The latter can make you discouraged and cause you to give up on your goals, which of course is something you want to avoid.

Bonus Offer: Bank of America $100 Bonus Offer for new Online Checking Accounts. See page for details.

Buffett-ology: 21 Life Hacks From Warren Buffett That Anyone Can Use

How Much Do I Need to Invest to Become a Millionaire?

The amount you'll need to invest to become a millionaire depends on where you are in your life. You can afford to sock away less money when you're younger because you have more time to accumulate your wealth and you can tolerate more risk. If you put off saving until you're older, you'll have to put away more money every month.

5. Avoid fake status symbols

When you think of a millionaire, you’re sure to picture them driving an expensive car and flaunting a watch that looks more valuable than your house. 

These status symbols have nothing to do with the millionaire mentality.

The path to financial freedom is about consciously consuming, not spending big.

“Do you really need to spend two or three months’ salary to go on vacation somewhere far away, when you could rest so much better somewhere close to home?” Müller said.

How To Build Wealth Before 30

If you want to know how to become the richest in a short period of time, you should know that you can’t just save part of your income over 20 or 30 years. You’ve got to be able to save more than that.

Those who earn low or average wages are going to find that it is very hard to do this. I’m not going to sugarcoat it and say you can become a millionaire on a minimum wage job; the fact is, you probably can’t without additional income.

But I’m also not going to say it is impossible. Your desire has to be greater than your need to spend frivolously.

Everyone has essential expenses you can’t get around. Some people take it extreme and live on no money so they can save their entire paycheck.

With all the savings tips in your head, that still might not be enough because you just don’t earn enough money. The goal here is to increase your income and earn extra money.

Self-made millionaires focus on 7 main income streams that are both active and passive. It’s a combination of these income streams that get them a high net worth.

One income stream to consider is real estate investments. If you own a rental property, you can make money from that every month. As long as you are able and willing to keep things maintained, it’s a great way to earn a little cash on the side.

If you’re already in your 20s and seemed to squander away your high school years, don’t fret. You can still reach those financial goals by the age of 30 if you work hard.

You’ve got fewer responsibilities and might be able to live with your parents, siblings, or get a friend who might let you rent a room. Housing is typically the greatest monthly expense so minimizing it gives you the most financial savings.

How do I become rich? Becoming rich is a combination of earning money, minimizing costs, and investing.

High-income earners will have an easier time at saving money as long as they don’t let lifestyle creep set in. That’s why so many doctors are broke. They’ve spent all their money on status items and appearances with little in the bank.

Just be mindful of spending habits and save as much of your paycheck as you can. You may already live frugally and there are no expenses to cut. What then? You’ll need to learn how to save money on a tight budget on the things you need and find other ways to build your earnings.

Becoming a millionaire also means learning about investing. When you use the stock market, money market accounts, and the like, you can grow your earnings exponentially. Meet with a certified financial planner in order to find the right investments for your goals.

See if you’re on the right track by calculating your individual net worth here.

Examples of People Who Got Rich from Nothing

Below are some examples of people who have become rich from nothing.

Bill Gates

Bill Gates is one of the richest people in the world and a self-made billionaire. He started the company Microsoft in 1975, which you likely use on a daily basis.  

Warren Buffett

Warren Buffett is a self-made billionaire who started investing at the age of 11. He started a newspaper business at 13 and slowly built his wealth to now over $70 billion. 

Jeff Bezos

Jeff Bezos started Amazon with the mission of selling textbooks online at a fair price. The company has since shifted to delivering everyday items through a robust operation offering superior shipping options and great prices. 

Mark Zuckerberg

Mark Zuckerberg founded the term social media with the creation of Facebook. Before Facebook, social media websites were few and far between. The company has advanced and has over 1 billion members. 

7. Invest your money

A huge factor in how to get rich from nothing is investing your money. Even if you don’t have much money, you can still get started investing to start building wealth.

Similar to creating multiple income streams, you will want to eventually diversify your investments too. This way, you are bringing in income from a variety of sources. Some investment types include:

  • Stocks
  • Bonds
  • IRAs
  • 401k
  • Real Estate
  • Businesses

The sooner you invest, the quicker you will build your wealth. Some people avoid investing because of their fear of the stock market. Don’t be too intimidated by investing; you can learn everything you need to start investing with Clever Girl Finance’s Book “Learn How Investing Works, Grow Your Money”! You will learn:

  • How investing works
  • How to create an investing strategy
  • What key pitfalls to avoid
  • How to leverage investing on a modest salary
  • Building a nest egg for your future
  • Real success stories from other Clever Girl Investors

You will learn how to become wealthy from this fantastic book by learning how investing works!

Tags

Leave a Reply

Your email address will not be published.