It’s a title that plenty of us would love to have. Believe it or not, becoming a millionaire is a goal that can be achieved this year. In my life, I have been a millionaire several times. Despite the chance that you too will blow millions, the process for you or anyone to become a millionaire has been consistent over the years. If you follow these eight valuable pieces of advice, I can guarantee that eventually you will become a millionaire.
1. Develop a written financial plan.
One of the main reasons why someone can never become a millionaire is that they haven’t written a financial plan. Developing a financial plan forces you to take action, instead of just talk. It also guides you in making the right decisions in order to achieve all of your dreams and goals. Hedgcock added that, the success experienced by those who do this occurs regardless of their relative wealth. Likewise, the failure of those who do not follow a plan is unrelated to their wealth.
2. Focus on increasing your income.
The first step is to focus on increasing your income in increments and repeating that. Cardone said. My income was $3,000 a month and nine years later it was $20,000 a month. Start following the money, and it will force you to control revenue and see opportunities.
3. Take advantage of Uncle Sam’s generosity.
If you want to become a millionaire, focus on keeping both as low as possible. He also suggested opening up a traditional or Roth IRA, because those plans keep Uncle Sam away from your money, either now or later. You should use a broker or brokerage firm that charges very little per trade — and not to trade too frequently, Feroldi advised. If you want to become a millionaire, you need all the help you can get.
4. Increase your streams of income.
This could include starting a side business, working part time, making investments and renting out everything from your home to your car to household items.
5. Automate your savings.
The way to make this work is by automating your savings. This will automatically withdraw a percentage of your salary and place it into your contributions without your ever seeing it. It’s suggested that you put 10 percent toward investments and 5 percent toward savings.
6. Upgrade your skills and knowledge.
Read at least 30 minutes a day, listen to relevant podcasts while driving and seek out mentors vigorously, wrote Tucker Hughes, who became a millionaire at just the age of 22. Consume knowledge like air and put your pursuit of learning above all else.
7. Live below your means and lay off the credit.
It’s widely known that the wealthiest people in the world are frugal. And, they’re known for living below their means by purchasing modest homes and vehicles. They’re also known for keeping their debt under control by using credit sparingly.Take a cue from T. Boone Pickens, who only carries around as much cash as he needs for what he intends to buy.
8. Associate with millionaires.
In most cases, your net worth mirrors the level of your closest friends, Steve Siebold wrote for Business Insider. We become like the people we associate with, and that’s why winners are attracted to winners. The reality is, he said, millionaires think differently from the middle class about money, and there’s much to be gained by being in their presence.
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