So what does being a millionaire mean to you? Here’s a few options on how to be a millionaire…
1 – Win the lottery – well this isn’t the step that I’d personally recommend, but of course many people continue to think that they have more than a one in a billion chance of winning, so fork out their hard earned cash on that infamous lottery ticket. So if you don’t mind throwing away your precious dollars then continue to make someone else rich.
2 – Inherit – once again this isn’t a step I believe you should rest your laurels on. The chances of you having a long lost relative with an estate worth a fortune are slim to none. Simply “wishing” to be a millionaire will not improve your chances of becoming a millionaire.
3 – Earn an income – this may sound like a no-brainer, but clearly the more money you make the faster you can reach your goal of becoming a millionaire. However it doesn’t mean that your average individual earning an average income cannot obtain millionaire status. Take control and realise that things do not happen overnight. It may take a few years of slow growth before you reach your financial goals, but you can do it if you don’t have the “get-rich-quick” mentality and take action in addressing your finances.
4 – Live within your means – trying to keep up with the Jones’ will be to your detriment. Appearances can be deceiving. Dining out at lavish restaurants, wearing the latest fashion labels and overextending yourself with a heavy mortgage or fancy car repayments, will only drive you into bankruptcy. This doesn’t mean you have to do all your shopping in second hand clothing stores, or eat beans on toast or drive an old banger, it does mean that some astute purchasing can get you what you want at a fraction of the cost of high end goods and services.
5 – Saving and investing – earning a reasonable income and living with your means will most likely provide you with money left over to save. However this is a problem for most people. People pay their bills, make purchases and then if there is anything left over then they decide to save. This isn’t the way to go about it. You need to pay yourself first. Think of your savings as a bill and pay yourself first. Typically 10% of your income should be paid to you first. This is the money that you will take to save in a high interest account of your choice (do your research) or you could be “saving” and “investing” that money at the same time by making extra payments on your mortgage. By setting up an automatic payment to your mortgage company you will be “paying yourself first” and probably won’t even miss that 10% you have deducted from your income.
6 – Invest for the long term – many people look to real estate as part of their investment portfolio. However staking everything into your primary residence and expecting it to appreciate in value in the short-term is naïve. Like most investments, real estate will make you money over time. So too with stocks, bonds or retirement funds, these appreciate over time.
7 – Maintain your plan – once you have created your plan of action, you need to stick to it. Be alert to ways to increase your income, whether at your current job, changing jobs or starting your own business. Increasing your income will mean you can save more, but don’t be tempted to spend the additional funds. Additional cash loaded into savings or investments will mean it will continue to grow quicker.
I’d like to think that you have realistically looked at options one and two and realised that these are the ways that most people look to, to get rich quick. However if you’re sensible and responsible, you’ll realise that it’s foolhardy to believe that fortune and wealth falls into a person’s lap without having done much work. Yes, some people may have won the lottery or indeed inherited a large estate, but where are they now? Are they still wealthy? These are exceptions, they aren’t the norm. There are no hidden secrets to becoming a millionaire. Almost anyone has the chance to make it happen. You can make it happen. Becoming a millionaire means taking action, reading, researching and applying what you learn, not wishing upon a star.
About Author: Zurieka Model is married to loving hubby James. Together they are inspiring and empowering people to attain to financial freedom and live more holistic lives. http://www.zurieka-model.com