How To Become a Millionaire: Anyone Can Do ItJan 06, 2021
We all love the TV program “Who wants to be a millionaire” and why not? It’s exciting to see a regular person go from zero to a million in an instant. You might even be thinking: if I could just be as lucky.
But becoming a millionaire is not as easy as a game show.
However, the good news is that you can become a millionaire, and you don’t have to enter a game show, wait on some family inheritance, or win the lottery to do it.
You’ll be surprised to know that there are many other ways to get there.
Today, more and more people are starting to realise that becoming a millionaire is within reach, after all, a person with an annual pay of 25k, working for 40 years can earn a million pounds.
But the issue is not with earning the money but keeping and having a net wealth of a million and having that money compounding itself.
It’s easy to think of having a million as all about the money but it is more than the money. It’s about the lifestyle it allows you to enjoy.
The comfort of spending more time with your family or being able to give to worthy causes you support.
They say money can’t buy happiness, but it sure can buy control. The kind of control over situations that allows you to be less stressed worrying about unexpected expenses that pop up from time to time.
Moreover, the sense of accomplishment and confidence in achieving such a feat boosts your self-esteem and propels you to even better things.
Compared to 10 or 20 years ago, becoming a millionaire now is so different with the explosion of the internet, and information available everywhere.
Unlike many years ago when your path to wealth involved getting a degree from an ivy league college, or inheriting wealth, the options now are endless.
Of course, now, you don’t need to go to the best colleges to become a millionaire, you could sit in front of a PC (which was a luxury back then), connect with individuals and businesses halfway around the world and make millions right from the comfort of your bedroom.
Is becoming a millionaire even possible?
Yes, it is very possible to become a millionaire. Many have done it turning pocket change into millions of dollars but by putting a lot of time and effort and some, not so much.
Some popular names who have done it include stewardess Sandy Stein, who is credited with inventing key clasps that help women avoid losing their keys in their purse. Her company reached $1 million in sales within four months of launching her product.
Another name Oscar Stohler, a farmer became an instant millionaire in 2008 when he allowed drilling on his farm until oil was discovered.
How can you become a millionaire overnight?
The truth is apart from winning the lottery or finding out that you had an aunt who is a millionaire and has decided to leave you her inheritance, there is really no such thing as an overnight millionaire.
There are quick and long routes but no overnight route!
Many people who become millionaires overnight have also lost their wealth as quickly as it came because they did not have the financial literacy and habits that would allow them to manage their money or multiply it.
Many spent their money buying expensive things, gambling and making one poor financial decision after another.
How much money do you need to save each day to become a millionaire?
This question of how much you can save is top of the mind of anybody who is serious about cracking the top tier of financial levels in the society.
Doing this differs from one person to another. Below is a simple graphic that shows age, daily or monthly savings and the return on retirement. This will give you an idea of how well you can save to get to millionaire status.
20 Must Do’s For Becoming a Millionaire
1. Believe You Can Do It And Dream Big
If you don’t believe it is possible, you can’t achieve it.
Becoming a millionaire starts with your mind.
Have a vision that is larger than what you hope to deliver and you will improve your chance of meeting your goal.
Becoming a millionaire is not something you can get to do without a clear plan.
Millionaires just don’t save but plan their investments to create multiple income streams that can make their wealth explode.
3. Start Saving
Becoming a millionaire is largely down to saving and investment over a long period of time.
Commit to a saving plan today and practice self-control so you are not tempted to blow your savings at every opportunity.
4. Put Your Savings On Autopilot
To cut through the urge to spend your savings, set up automatic paycheck deductions with your bank. This will allow you to save more money and never get to worry about thinking of spending it.
Consistency and automating your finances is a great way to achieve financial freedom.
5. Live Frugally
This is the oldest piece of advice in the book when it comes to accruing wealth.
It might be tempting to spend more to boost your standard of living or meet lifestyle expectations as you begin accruing more money. However, if you want to become a millionaire, you should start getting comfortable with discomfort.
Spend less, budget and save more and you can free yourself from the paycheck to paycheck lifestyle and begin to invest.
6. Focus on Being Debt Free
One of the greatest things that can set you back on your goals is debt. Even if you receive income monthly, you should ensure all your debts are paid and you become debt-free.
If you deduct from your gains and it comes out negative, you cannot become financially free and your millionaire dreams are still far away from becoming reality.
7. Increase Your Income
The economic climate today is getting harsher, and it’s impossible to save your way to millionaire status. What you need is to increase your income incrementally through side hustles and continue to repeat that.
8. Build a Business
This is certainly one of the ways to go from zero to millionaire status. Most of the worlds richest started their company and built it to become rich within months and years.
You don’t have to be the next Amazon or Facebook, start small and you could be on your way by building a business.
If there’s anything that can propel you fast to a millionaire, a good place to start investing your money is in real estate. Buy properties as there will always be buyers for properties and property values will continue to climb.
You can also invest in the financial markets, especially in low-cost index funds. With investments, diversification of your portfolio is key.
10. Make Time Your Best Friend
Time is of the essence if you want to be a million pounds richer.
The earlier you begin to tuck some money away in your savings, the better.
If you start to save from your twenties or thirties, you’ll be able to take advantage of compounding interest and be in a better position without having to do too much work down the road.
11. Life Happens
Having some money set up towards your emergency fund separate from your millionaire fund will ensure you can keep steady toward your goal without having to make deductions during financial emergencies.
12. Work Hard And Diligently
There’s no way around it. You have to be putting the effort and hours to get in more money.
13. Get a Second Job
Getting a second job will not only add to your savings much faster but with a second job, you get to make more money and are so busy you don’t even have time trying to spend what you are saving. Here are passive income ideas.
14. Get Good Money Management Skills
Financial freedom is tied to your financial literacy level.
Learn new and efficient ways to manage your money more because, without good management, your money can never grow to the point you want it to get to.
15. Do What Makes You Happy
The easiest route to financial freedom and success is in doing what you enjoy.
This way, you spend more time at it and excel quickly, which puts you in a better position to earn more pay. Remember it can't be all work and no play.
16. Pay Yourself First
You need to feel satisfied as you take the steps to achieve your goal by paying yourself first so you don’t feel deprived of your hard work.
17. Generate New Income Streams
It’s never enough to just save and hope that wealth will come to you.
You are only going to receive what you earn.
Many of the self-made millionaires didn’t come upon riches through one income. They developed several streams of income, some up to three, four, five or more streams.
18. Change Your Mindset
There’s no greater gift to give yourself than getting financial education and developing your mind when it comes to building wealth.
Start by reading finance and business articles and newspapers, listen to podcasts dedicated to financial advice, watch videos online, and seek out advice and tips from experts who have made great strides in their financial lives.
These are the things that will set you apart from others.
19. Be Versatile
There’s no one sure way to become a millionaire. If there was, we’d all be making millions already.
However, through a blend of business practices and personal finance skills, you too can become the next millionaire.
20. Surround Yourself With Like-Minded People
“Show me your friend and I’ll tell you who you are!”
One of the things the world’s richest people do is build a network of friends and people who share their vision and are just as driven to financial success, if not more.
We become like our friends, and associating with the rich will expand your thinking and transform your income.
21. Work With An Investment Professional
There are people who are better than you at this. Work with a financial pro who already has the training, knowledge and experience to help you manage your portfolio and make it out better for you.
And It’s a wrap!
Becoming a millionaire isn’t as difficult as it seems.
Every year, more and more people prove that you don’t have to be at a high paying job, win the lottery, or be born with a silver spoon in your mouth to make seven figures.
Just by being committed to saving, investing, spending less than you earn, and keeping with the tips listed in this article, you can build your wealth easily.
However, beyond building wealth financially, it is important to also seek it in health, family, community and cultivating a habit of loving one’s self.
These are all the things that come together that make it all worth it.
If you are ready to get started with your goal of becoming a millionaire, get started today by saving and begin to implement daily actions such as budgeting and tracking your spendings and you are well on your way to hitting the big bucks.