Does your goal to become a millionaire seem unattainable or far-fetched? Sometimes you wish that you were lucky. Before you lose hope, here is the good news; there’s a proven way to get there. But don’t get it wrong; being a millionaire does not mean an upscale lifestyle, or owning a lavish house and fancy cars.
Unfortunately, many people blow their chance of becoming a millionaire by acquiring such luxuries without the capacity to maintain them. Fortunately, it’s not rocket science to have $1 million in your bank account. Your education or inheritance doesn’t count, but you got everything to do with it.
The following tips will help you in becoming a millionaire.
1. Create Your Written Financial Plan
It isn’t easy to become a millionaire without writing down a financial plan. According to Scott D. Hedgcock, a financial planner, the difference between those who become millionaires and those who fail is the amount of effort and time they invest in planning for their finances.
A successful financial plan entails the following;
- Focuses on the essential matters and avoid the bad happenings from the past.
- Includes a list of your expenses and income left over
- Focus on the future by speculating on requirements for survival
- Details an investment plan with long term yield
2. Increase Your Income
Smart investment means allowing your money to work for you. Look for smart investment opportunities that generate passive income; do not rely on one source of income. As you make money, divert some to other money-making sources like buying stock or playing the lottery.
Some people might think gambling is a waste of time, but if you have tips on how to win the lottery, winning becomes easy and inevitable. Millions of people have invested in the gaming industry and gained a lot.
According to Thomas Corley’s discovery, 65% of the self-made millionaires he researched had three income streams. 45% had four, while 29% had a minimum of five streams. Increasing your income streams could be like starting a part-time job, side business, or other investments.
3. Make Saving a Habit
It’s almost impossible to become a millionaire without savings since you invest what you have saved. You need to identify various comfortable ways of saving money and get committed to your saving plan. The best way is to establish a savings account or an emergency account and automate putting money in them.
You can authorize your bank to auto-transfer a certain percentage of money from your main account and add it to a fixed deposit account after a certain period. For example, you could save 10% of your monthly income into an account that compounds interest and 5% inside your emergency account.
4. Improve Your Knowledge, Skills and Develop Intellectual Property
Knowledge is limitless, and you can get it through various sources. There’s always something new to learn; keep searching to upgrade your skills. Reading books, engaging professionals, and listening to educative information like podcasts will help increase your knowledge.
Design intellectual properties like scripts, eBooks, patents, art, trademarks, training programs, workshops, and seminars. You will earn royalties from such tools and become a marketable entity that informs or entertains many people.
5. Live Under Your Means and Avoid Unnecessary Credit
It’s a fact that renowned wealthy people are frugal. They hardly spend anyhow on luxurious or designer items. The majority use coupons and live below their means. They are also perfect in using credit sparingly.
Avoid living a lifestyle within or above your means. Stay below your means and avoid debts. Take credit only when necessary, and have a clear and workable plan for repayment.
To most people, becoming a millionaire appears only as a dream. Luckily, it can become a reality when you apply the tips discussed above. But here’s the catch; in addition to using the above tips, you need to be focused, dedicated, disciplined, and hardworking.