I used to think the only possible ways to become a millionaire is to hit a lottery or be born rich. I stand corrected. There are several ways to get rich or become wealthy and all of them are perfectly within grasping distance, you just have to reach out. It’s got to do with tenacity and determination rather than luck.
Of course, I do agree there is a bit of serendipity to it as well, but on the whole becoming a millionaire is more the result of a person’s wise decisions and positive financial habits.
Becoming a millionaire has possibly been a dream for each one of us. We look at all these billionaires on Forbes list and wonder how they ever got there. You could actually own a million dollars within a year or two if you wanted to. So here are some priceless tips that are guaranteed to making you a millionaire. Let’s get the show on the road!!!
How to Become a Millionaire – Things You Need to Know
Sketch Out Your Financial Plan
Plan out your budget before you act. A financial plan can guide you to make correct decisions. When planning, consider the amount of money you earn, the amount you spend and the amount you can realistically save. Here, ‘realistically’ is the key word.
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Put some time and effort into making a feasible plan. The basic outline would be to earn more, spend less and increase investments and savings. Stay on top of your money by using Mint to track your money and set goals.
How to become wealthy fast? Set your goals. Where do you want to be financially after 2 years? Be specific. Say, you would like an investment portfolio to the tune of $50,000. Record expenses; make budgets and plans for saving money. Decide on your priorities. Put a plan in place, and more importantly, stick to it.
Save, Save, Save – Best Way to Become Wealthy
I cannot stress this enough. You must prioritize your expenditure to become affluent. You don’t get to become a millionaire by splurging. If you start making sacrifices today, you can reap the benefits tomorrow. Check out your income and expenditures list and see where you’re splurging. Vacations perhaps? Food? Entertainment?
It’s not merely the amount of money that you earn, but the way you use the money that matters more. The trick is to earn more than what you spend. That doesn’t mean you have to live like a monk. Just focus on spending only on essentials. Find a thrift store nearby or shop at eBay.
For instance, if you enjoy eating out, don’t deprive yourself of it:
- Just choose slower nights, mid weeks.
- Take advantage of early bird special offers.
- Share an entrée.
- Have a light snack at home before leaving, so you don’t have to order a huge meal.
- Use coupons. You get the drift, right?
Investments to Become a Millionaire
If you’re wondering how to become a millionaire fast, start making investments. You’ve surely heard about compound interest. It’s the most powerful force in the world. Make it work for you with wise investments.
Think about the long term and ways of earning passive income. For instance, you can write a book and earn royalty every time it gets sold. Alternatively, invest through crowdfunded real estate options like Fundrise, with as little as 5000 dollars.
Consider Your Human Capital
Apart from your financial capital, you surely must possess human capital. These are important aspects to consider in the steps to become a millionaire fast.
- What are your skills and talents? Do you have the capabilities to work hard?
- What are your soft skills?
- Is it possible to learn some additional skills, so that you can earn more?
- Can you improve on your communication skills and improve relationships?
Improve on existing skills or learn a new set, which could offer you openings for more lucrative jobs. Invest in training programs to increase your pay. Remain knowledgeable of the latest trends. Think about combination skills that work.
For instance, if you are into graphic designing, you could also learn to be a good copywriter. A creative combination could make you stand out from the rest and help you towards your goal to become a millionaire.
Learning to Dress
What’s that got to do with becoming a millionaire? More than you think. The way you dress could have a stupefying effect on your wealth and could help you to become a millionaire.
Today, you might find the founder of a startup perennially clothed in jeans and a worn out T-shirt, I daresay. But that doesn’t mean you should follow the same.
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Update your wardrobe colors and give away clothes that you haven’t touched for the past one-year. Take care to get proper accessories, like shoes and bags to elevate your look.
Head over to sites like Stitch Fix to get clothes customized to your lifestyle. Dress appropriately for that major presentation. But, above all, be comfortable in what you wear. Comfort exudes confidence and can be a stepping stone to becoming a millionaire, being one of the easiest ways to get rich.
Increasing Your Income
A good source of income is the primary factor, unless you were born with a silver spoon. Look out for avenues to get a second income for making additional money, as it is one of the easy steps to become a millionaire.
You could do some odd jobs; sell something home made, do some freelance work online. It could seem like a pittance, but every grain of sand counts.
For instance, try out TaskRabbit to do small tasks. You could run small errands like picking people’s laundry or helping them to move in. Check out RedBeacon.com for plumber/electrician services.
How to become rich fast? If you’ve read the stories of millionaires, you’ll find a lot of diversity. But they all have one thing in common – hard work and ambition. If you have these, it’s just a matter of time. Remember, you are the driver of your destiny.
If you want to become a millionaire, decide how to earn more, spend less, save more, and make better and wiser investments. The world is your oyster.