It’s not that tough to become a millionaire. In fact there are numerous ways to reach that landmark. Some people become millionaires by striking the right deals in real estate; some become successful in their own businesses; while others hit good fortune by winning a lottery or coming out tops on a game show. It’s worth noting here that one doesn’t have to be rich to begin with or earn in six figures to reach this target.
There are some people who have salaries well over $100,000 — and they end up with huge mortgage payments and an expensive car that lose value quicker than a glass of water evaporates in the blazing summer sun. You too can become a millionaire — there are five things you have to do to have a chance of turning your dreams into reality.
Tip 1 – Earn Income
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Obviously, the faster you earn the more money you will make and you will reach your million-mark quicker. But this does not mean that the average person earning an average salary cannot reach the millionaire rank. In the USA, the medium income is in the $35,000-$60,000 a year group. If you tie the marriage knot, you will earn a ‘double’ income, which will be better. The great thing about having two incomes is that your expenses don’t double – even when two people are living in the house.
Even if your earnings are below the average – everything’s not lost. It’s in your hands to do something about your circumstances. Nothing will change if you have a negative outlook, in your workplace or about your job or your ability to earn money. Becoming proactive is the key word; be resolute about making your financial position better. It’s your life, assume full control and recognize the fact things won’t change quickly. You may have to endure some years of sluggish development before you reach the goal. But if you make a sincere attempt, you can do it. Other than coming into family money or bagging a lottery, you will need to earn a realistic income to get into the seven-figure bracket.
Tip 2 – Live Within Your Resources
It feels good to eat at a fancy restaurant or wear expensive designer clothes. But if it means spending all that you earn – or even more than you earn – then you will certainly look like a wealthy guy, but you won’t really become a millionaire. However, it doesn’t mean that you must spend very little like a miser. You must be rational and sensible in your spending.
You can commence by buying a home that suits your budget and a car which you can afford to drive without straining your earnings too much. Don’t fling your money on fancy houses in upmarket areas or zoom around in SUVs. At the same time, you don’t need to spend your life in a hole.
Tip 3 – Put Aside Some Money
So, if you get a decent salary and maintain a reasonable lifestyle, you’ll have some cash left over to save. Right? But that’s where the problem lies. Most people think of savings as an additional thought, something that needs to be done only after the other expenses are met. You have to do it the other way round — save first, then pay your bills and make other expenses. The amount may be small — $100 a month — or big like $1,000 a month – but think of it as if it’s a bill that has to be paid, and do it on a regular basis. If you cannot save money you will be left with only material wealth.
So start saving every month and then do it routinely. In this age, an online savings account can do this for you. Besides, you will earn more interest than you would if you had invested the money in your local bank.
Tip 4 – Be A Wise Investor
Once you start saving money, there’s no need to read the business newspapers or watch business channels on television to start investing. You don’t even need a professional investment portfolio. Just invest on a regular basis in a broad-based portfolio. Do this and soon you’ll be on your way to accumulating wealth.
It’s imperative to bear in mind that real estate is also a part of the investment portfolio – but all of it should not be in realty. A large number of people put all they have into a residence and then wait for its value to go up. As in other investments, you will earn money over a period of time, but depending too much on real estate is the same as relying on one stock to finance your retirement. In short, your investment plan should be such that it gives continual growth over the years.
Tip 5 – Keep To Your Plan
Now, all that’s left for you to do is to continue with the first four steps as you have been doing all along and keep to the plan. Also, always keep your eyes open for other, additional means of income, like aggressively working at a promotion in your job; seeking a better-paying one or even starting a side business. When additional money enters your savings/investments, they grow even faster.
Tip 6- Work at It
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Many people look for get-rich-quick schemes. Though it’s true that some succeed in this fashion — generally by playing the real estate market, or by putting money in stocks that grew by leaps and bounds – it is the exception rather than the rule. The list we have drawn above is simple, but it’s good. In fact you don’t need a rocket science formula to earn big money – just follow this process: 1) Earn money 2) don’t spend all of it 3) Save some of it 4) Invest the savings 5) Repeat the procedure.
To sum up, follow the plan judiciously. It will take time, but not too much time and it will always work. There certainly are people who become millionaires overnight – but they need a thick slice of luck for that. For the majority, the motto is: ‘slow and steady and surely.’