How To Become A Millionaire: 8 Guaranteed Ways To Make Your Bank Balance Touch Seven Digits

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How To Become A Millionaire

Have you been wondering how to become a millionaire? Have you been spending your nights wondering how to become rich or how to make millions? Well, you are not the only one, my friend! 

While for some, it might seem impossible, it doesn’t necessarily have to be a dream that is completely unachievable. With proper planning, savings, and patience, you may as well be on your merry way to become a millionaire in no time. 

Stay with me as I take you through the best ways to become a millionaire!

Contents

Key Points To Note 

Key Points To Note
  • If you are thinking about how to become a millionaire, the very first step that you can look for is to take advantage of compounding. 
  • Keep a check on your spending habits. This way, you will have more money to spend and accordingly invest. This way, you may just reach your goal much faster. 
  • Try maxing out your retirement account whenever you get a chance. Consider it even more, when your contribution matches your employer.

Read More: How To Get Rich? Don’t Miss Out On The Best Tips

Best Way To Become A Millionaire

Best Way To Become A Millionaire

To be very honest, you don’t really need a job that pays you six figures or has to inherit the wealth of your family in order to become a millionaire. 

A little mindfulness and a proper savings plan can easily help you out with what you have been looking for. 

Here are some of the tips that you may need to build up those millions by the time you retire!: 

Construct A Written Financial Plan

Construct A Written Financial Plan

Just dreaming about being a millionaire wouldn’t make you one. You will have to think of a solid plan, write it down on paper and execute it properly. 

“The written plan forces you to do something; calculate what you need to earn and how to invest,”

Stewart Welch, Founder, The Welch Group, said.

“The plan isn’t just the goal; it’s the whole thing: the dream, the goals, the options.”

“The options require “scenario planning” — coming up with all the ways you can accomplish that goal, such as opening a Roth IRA or contributing to a 401(k),”

Welch further adds. 

Start Saving As Much As You Can 

Start Saving As Much As You Can

“Saving money really means putting your own personal finances first,”

suggests Mark Hamrick, Senior Economic Analyst, Bankrate.

“So, think of saving money as a way of paying yourself first. By making saving money a priority, you are boosting the chances that your financial future is going to be stronger than your financial present or past.”

You can begin by building an emergency fund in your savings account so you don’t have to torture the rest of your investments and savings when any big expense unexpectedly arises. 

You must make a point to save at least half of each of your pay raise. You may also try exploring different savings options to make sure you end up getting the best returns on your money. 

You can also fetch the benefits of the retirement fund.

Varying your savings is also important to fetch the maximum out of what you have put in. 

“Don’t be among the many Americans whose top financial regret is the failure to save, either for emergencies or for retirement,”

Hamrick suggests. 

Quit The Extravaganza Life 

Buying a big penthouse or a mansion, or driving the newest model of Mercedes is a big price to pay. Doing these will eventually reduce the amount of money that you can save or invest. 

“This is really one of my favorite financial mantras,” Hamrick adds. “Too many individuals, or consumers, are conditioned to think — or allow themselves to think — that their self-worth is somehow tied to their personal possessions.”

Hamrick, however, has an alternative way of thinking about this.

“But wouldn’t we really like for others to admire our resourcefulness and wealth-building, rather than our spending?” he said. “Financial success will be dictated, to a large degree, by how we manage our money, not by overspending.”

People that are keen on becoming a millionaire, in the long run, do not tend to spend unnecessarily on lavish vacations or pricey cars. 

Try Staying Out Of Debts

If you have questioned yourself on how to become a millionaire, you must know that debt is your ultimate enemy. It is always better to pay yourself than to pay back to the bank or a credit card company. 

“When you are in debt, it is very hard to make progress toward securing your financial future because you have to pay your taxes and your debts before you can use any of your money for yourself”

says Legacy Partners’ Flurry. 

Flurry has further suggested that in order to become a millionaire, you avoid what he refers to as “dumb debt” which includes car loans, credit cards, and most student loans.

In case you have a heap of credit bills, pay them off as soon as possible and keep only a couple of them. Avoid putting anything on your credit card that you may not be able to pay off easily in two to three months. 

“Debt holds people back”,

Flurry adds.

“They buy liabilities, and they make those payments forever”.

Try Out Investments That Work The Best In Your Interest 

Try Out Investments That Work The Best In Your Interest

You will not need a tonne of money to be able to invest. You just need to get access to an account with a mutual fund company that offers “no-load funds” and minimum expense ratios. 

You may also invest in the stock market by yourself or through a broker. A broker will not be charged any commission for trading the stocks online. 

If you have enough cash for it, try investing in real estate. This will also help you in having an additional income if you lease the property you own. You will also be receiving appreciation over the property value over time. 

However, it is not considered wise to invest all your funds in one place. Be diverse about where you are investing. Investing in multiple places also reduces risk. If either of the investment turns out to be a loss, the others will still have your back. 

“Stick with the basics (a mix of stocks, bonds, cash, and real estate) and not what your friends are doing. Everyone’s situation is different” Dana Twight, CFP, Founder, Twight Financial Education in Seattle, added. 

“Your employer retirement plan is often a good place to begin”

Twight says.

“It has automatic contributions, allowing you to invest without being concerned about today’s news.”

If you want an increase in your investments or want to diversify more, you must try out some of the passive income opportunities, like renting out a property or lending peer-to-peer. 

“Investing in different asset classes helps you weather all the storms, floods and calm moments in between”

Twight adds. 

Quit That Job And Be Your Own Boss

Quit That Job And Be Your Own Boss

Have you ever seen someone working a nine-to-five job become a millionaire? Never! 

In order to become a millionaire, you need to think big and think differently. You can never really do that by working in a nine-to-five job. It is next to impossible. 

If you really want to earn the big bucks, you need to step up and be your own boss. From Mark Zuckerberg to Elon Musk – none of them really became that big by working a regular nine-to-five. 

Entrepreneurs make up most of the wealth in the country. In 1984, less than 50% of the people on the Forbes 400 list of the richest Americans were entrepreneurs. However, by 2018, that quantity went to make 67% of the list. 

If Not A Boss, At Least Make More Bucks

I get it. It is easier said than done. If you are not saving at least 15% of what you earn, the road to becoming a millionaire may just be quite rocky. But there are a few other options that you may just consider trying: 

  • Ask your employer for a pay raise only if you think that you deserve one. 
  • Working for a few extra hours may help you get a hefty bonus or a good increment. 
  • You can look for a second job. This could be a part-time job where you can work on the days when you are not going to the office. This might be quite hectic for you, but becoming a millionaire was never about sunshine and daisies. 
  • You can also get some training to improve your skills. The more skilled you are, the better a promotion you can expect. 

Getting additional training pays you off in the longer run. Of course, you cannot expect it to pay off immediately; however, it will. Even if it does take a fairly long amount of time, it will still work for your benefit. 

The pay raise that you will get once you get the promotion will be a major push to the financial goals that you have set. 

Talk To Professionals

An efficient financial advisor can take you to heights that you cannot even imagine. They can provide you with strategies that will help you not only build your wealth but also preserve it. 

With that being said, don’t just lay back and let the advisor do all the work. It is after all your money, and you are the one planning on how to become a millionaire. Therefore, you need to step up and actively participate in where and why your money is going. 

“We are all lifelong learners when it comes to personal finance,” Twight said. “Be willing to update your knowledge periodically and relate it to what is going on in the world, but keep your eyes on the prize.”

If hiring a financial advisor is beyond your budget, you can just get hold of one that will analyze your portfolio and recommend ways by charging a one-time fee. 

How To Become A Millionaire In The Easiest Way Possible? 

How To Become A Millionaire In The Easiest Way Possible

Well, the easiest way to become a millionaire is to grab as many benefits as you can from compounding. That will only happen when you start saving your funds as early as possible. 

The sooner you save, the more interest you will be able to fetch. Also, you will be able to earn more money on the interest that you have gathered. You must aim for at least 15% of what you earn. 

You may also work on your “how to become a millionaire” goal by eliminating any unnecessary spending and getting the help of a financial advisor for better guidance. As I had also mentioned above, you may as well just think about upgrading your skills by taking the necessary training or consider taking up a second job

How Much Do You Exactly Need To Invest To Become A Millionaire? 

There is no correct answer to this. The amount that you will invest will totally depend on what financial conditions you stand on. If you are young, you may just sock away less funds as you will have more time to gather wealth, and your risk tolerance will comparatively be more. 

However, if you are putting off savings till a certain age or when you are older, you might just have to put away more funds each year. 

Can You Get Rich With No Money? 

Can You Get Rich With No Money

Unless you have inherited millions from your family or are expecting to win a big lottery or anything of that sort, the chances for you to become a millionaire without doing anything are very slim.

You have to be extremely disciplined, have a solid plan, and in certain cases, expertise advice from a professional who will help you by giving the push in the correct direction to how to become a millionaire.

Read More: How To Save Money On Electric Bill? Top 10 Tips You Need To Follow

Wrapping Up 

If you are thinking about how to become a millionaire, you need to have a long vision. Think thoroughly about protecting your financial future

“Naturally, having enough money to enjoy nice things and creating memorable experiences for yourself and those you care about the most are wonderful options to have, but having lasting financial security is far more valuable”

Flurry adds. 

“When you don’t have to worry about money to meet your needs or provide for your lifestyle, you are free to think bigger and focus on the things in life that matter most.”

Thank you for staying with us till the end. I hope you found this article quite helpful, and this will help you figure your way on how to become a millionaire. 

If there is anything else that you want to add, feel free to drop a comment!

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