First things first. Becoming a millionaire will take time and a lot of work. You can’t just wait to win the lottery or hope that you have a rich uncle who is going to pass on his wealth to you. That’s unlikely to happen. In order for you to become a millionaire, you need to be determine, persistent, educated, and hard working. When you become a millionaire, you probably want to keep that status because simply just hitting the one-million-dollar mark cannot really support you and your family forever. That is, if you want to travel, buy stuff, and do a bunch of fun things with your them. With that being said here’s how to become a millionaire from nothing.
1. Decide to become one
This is definitely the first step in becoming a millionaire. You have to make a decision and have it plastered in your mind that you want and will be a millionaire. This is what will give you the driving force to actually take appropriate measures and make it a reality. If you only have ideas but haven’t made that firm decision that you want to turn them into money, then it’s just a dream. On the other hand, if you have already made up your mind about what you really want to do, then there’s a chance that it can come true. Knowing that you want to become a millionaire should be the first thing before you even set goals and targets. That’s your big picture of things. Also, ask yourself “why” you want to become one? Is it to be financially free later on and travel? Do you want to spend more time with your family? Or is it because you want to provide a better life to your family? This will help you stay focus and know that every time you fail, it’s just one step closer to becoming a millionaire.
2. Get rid of the poor mindset
The worst mistake people make is believing that becoming a millionaire is something that cannot be achieve for an average guy. Most of us look at influential and rich people like Bill Gates or Warren Buffett and think we can never get to where they are. Okay that might be true, but they are anomalies and they are billionaires. Sometime it’s your mind that is holding you back from making the extra buck or increasing your income. If you really want something, you’ll do whatever it takes to get it and that’s determination. All you have to do is ditch that poor mentality and start thinking like the wealthy individuals and how you can be on the train like them. Remember that the money is out there. It’s your limiting beliefs that are stopping you.
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3. Live below your means
If you are just starting, you shouldn’t have a lavish lifestyle. Go for the things that are affordable and within your budget. You don’t have to buy a really expensive sports car just to prove that you are rich or wealthy. If you do the math, you’ll realize that, that sports car isn’t really generating you any money and in return it is a liability for you because it keeps taking a chunk of your paycheck every month. The only reward you get form driving an expensive sports car is that some people will look at it and say “Oh, it’s a nice car you’re driving there” and nothing much. Also, reduce unnecessary expenses like the coffee you buy at the shop every day. Is that necessary? Or you can just make your own coffee for really cheap. But this doesn’t mean that you have to be hard on yourself and live way below your means. The trick here is to avoid overspending and manage your finances wisely. After all, most self-made millionaire knows how to manage and spend their money wisely.
4. Save money and avoid debt
Most people will only save when they think they have extra money left over after spending on things they want. The reality is that a lot of wealthy people save their money. You don’t know that because they don’t tell you. If you want to become a millionaire then you have to develop the habit of saving. Put aside a fix amount every month and know that you won’t spend it on unnecessary things. Additionally, do not just save without a plan in mind, do it with the intention of investing. In this way, you will be able to make something out of the sacrifices you make every month. Another good thing with saving is that it helps you avoid debt in case of emergencies. With less or no debts, making money and becoming a millionaire will be achievable.
5. Create goals and strategies
Now that you have the big picture in your mind of being a millionaire, you need to have strategies in place and create achievable plans. Your goals and strategies should all be written down as a constant reminder of what you need to do. Make sure you include short term goals so you can achieve them. Starting with baby steps isn’t a bad thing, this at least force you to take a step and move forward into achieving your goal. When planning, it’s important to consider your finances and forecast when you will be a millionaire. This will start of your journey and take you to the right path.
6. Invest your money
You cannot create wealth if you don’t invest your money. Investments are actually among the most effective ways to increase wealth. If you want to be a millionaire and to be successful at it, you have to be able to make wise investment decisions. There are lots of investment opportunities out there and the only thing that you need is the right knowledge and skill. For instance, one avenue of investing is the stock market. You don’t need a lot of money to get started. You can invest a couple of dollars just to learn and get your feet wet. If you don’t have much knowledge on investing, then you can talk to a financial advisor to see what options are available to you. Don’t let money just sit in the bank, invest it so that your wealth grows.
7. Have multiple source of income
Money doesn’t come easily and that’s why you have to work for it, initially. If you have a full-time job, that job will be your main source of income. But having a few passive incomes coming in won’t hurt you. The disadvantage of having just one source of income is that you might end up losing your job and you won’t have money coming in to pay your bills or save for the future. With passive incomes, you can at least relief some of your payments without worrying too much. In addition, it’ll increase your income and your chances of becoming a millionaire faster. Some passive income ideas can be creating blogs and promoting products, owning vending machines, or renting unused storage space or room out to people. Once these avenues are implemented, they require a little of your time to maintain. Then you’ll be a step closer to your goal.
8. Venture into a business
One thing you may have noticed is that majority of the wealthy individuals are entrepreneurs. Sometimes it’s a good idea to own your business and growing your wealth with your own ideas and skills. This doesn’t mean that professionals and employed people cannot be millionaires. It’s just that there are times being employed tends to pull a person back from exploiting their full potential. This is why if you have what it takes and you believe in your capabilities, go ahead and start a business. It should be something that has the potential to bring in more profits than loss. But you need to understand that starting a business is risky. You can lose a lot of money, make decent amount, or make a lot of money. Remember that not a lot of businesses succeed so get expert advice to avoid making costly mistakes. Venturing into a business will not get you rich overnight, but with patience, resilience, and proper planning, your goal of becoming a millionaire will come true.
9. Connect with millionaires
If you want to become a one, then you need to surround yourself with millionaires. You might ask “how does one do that when you’re just starting?” You can attend local networking events pertaining to what you want to do. Let say you want to become a millionaire through real estate. You can find local real estate meet-ups to attend or browse the web for real estate forums. Ask questions and look for mentors. Mentors will guide you and show you how to succeed. These people will inspire you and let you know that making millions is something that is achievable even if it takes years. On the other hand, those who aren’t wealthy will only discourage you and tell you how money cannot make you happy and rich people are evil and greedy. You cannot let that negativity get to you. You need to tune that out so you don’t fall back into the same pattern of being stuck in life when you deserve more. In addition, the rich can also be your investors in case you have a brilliant idea but no capital. They can be the person who will make your idea come true. This goes a long way just to prove how much benefits you get by simply surrounding yourself with millionaires.
Conclusion:
Overall, if you put your mind into it and plan it out, there shouldn’t be any excuse to why you aren’t a millionaire. Once you become a millionaire it’s like a snowball effect, you’ll make more and more and you’ll realize that you’ll actually enjoy making money, but don’t lose your mind and focus in the process. Your hard work will eventually pay off. Also, think positively and don’t be negative when you’re working to become a millionaire.