Millionaire

A Complete Guide to Becoming a Millionaire

Many people wish to become a millionaire, but not many of them put in enough effort to achieve that goal. In a world where being a billionaire is the new goal of the rich, even the average Joe has a chance to become a millionaire. In the end it all comes down to good management, sound planning and the occasional taking of calculated risks.

Prepare for success

Set yourself specific goals.

Good preparation is an absolute necessity when it comes to big business like becoming a millionaire. And it all starts with setting yourself specific, achievable goals that you always keep in mind. Maybe you want to reach your millionaire status by a certain age, like 30. Or your first goal is to get out of debt within two years. Break big goals down into smaller, more manageable goals. For example, if your goal is to build a business within a year, start by coming up with a business model within the first month.

Get a good education.

While there are some examples of millionaires and billionaires without a college degree, statistics show a link between education and wealth. The higher your school education, the more opportunities you have and the greater your chance of becoming a millionaire.

Take care of your health.

Making money and making good decisions to make even more money requires you to be in good shape. Keep fit, eat healthy and take care of your body. Your health provides you with the necessary energy and resources to really fully engage in your goal.

Be persistent.

In order to succeed, you must bounce back from failure. And on your way to your first million – or more – there will be numerous failures. This isn’t about the safety net of an average salary or fulfilling your boss’s wishes every day. If you want to become a millionaire, you have to be prepared for the big decisions, which may not always work, but if you don’t take the risk, you can’t succeed either.

Check your confidence.

If it’s low, now is the best time to build it up. A high level of self-confidence and good self-esteem are essential qualities that can help you on your way. But don’t let that stop you. “Through appearances to being” – the more self-confidence you radiate, the sooner it will become second nature to you.

Read the advice of those who have already made it.

It never hurts to capitalize on the wisdom of the successful, but be careful not to get too caught up in the planning and preparation phase. The most important step of all is to take action. But you should take some time and read the advice of other millionaires. Some useful books include: Thomas J Stanley, The Millionaire Next Door (2004) and Stop Acting Rich… and Start Living Like a Real Millionaire (2009) Alexander Green, The Gone Fishin’ Portfolio (2010, previously only available in English).

Find a mentor who has already walked the path and can give you advice.

Surround yourself with already-made millionaires. You can find these in various places, there is even a private online club where a personal millionaire mentor shows you how to make money in many areas on the internet.

Take care of your money affairs

Cut your expenses and be frugal.

This is the key element if you want to become a millionaire. Either you have your money in savings or you spend it on some things. You can’t have both if you want to be a millionaire. Most millionaires (wealths between one and ten million) live very modestly and cost-effectively, without the big spenders. This includes: Live below your means. For example, a good guideline for your housing situation is not to spend more than a third of your monthly salary on rent. Buy quality clothing, but don’t pay exorbitant prices. A suit for less than €350-400 is perfectly adequate. Wear inexpensive watches, jewelry, and accessories. collect nothing. Drive a reliable but affordable car of an average brand. Avoid prestige and luxury brands. Stop comparing yourself to others and don’t try to match their spending with them.

Familiarize yourself with savings opportunities.

If you’re used to maxing out your credit card and never saving much, you’re going to have a hard time becoming a millionaire at any point in your life. Start by opening a savings account solely for the purpose of putting money aside and depositing it regularly. This should be different than the regular account that you pay bills from, and at best should have a higher savings rate than a regular savings account. Savings are one of many ways you can make your money work for you. Your original deposit grows with interest whether you deposit additional money or not. Learn more about the different types of savings. Saving requires good self-discipline. Work hard on the bad habits that hurt your self-discipline. Focus on what you can accomplish with your savings and less on accumulating and boasting about your conspicuous consumption.

Invest in stocks.

If you want to try stocks, invest in companies whose products and services you use. One of the best ways to do this is through an investment club; for example, you could start one with your friends. But no matter how you choose to acquire your stocks, get some sound investment advice first. Choose a financial advisor carefully – check their reputation and track record first. Large company stocks may be slower and don’t sound as exciting as other stocks, but they make more sense over the long term.

Buy mutual funds.

Mutual funds are an investment in other investments. When you’re a shareholder in a mutual fund, you’re a co-owner of the collateral (securities, bonds, cash) of the investment. With a mutual fund, you pool your money with other shareholders and spread the investment over various investment risks.

Get into business

Find out what people want.

Focus more on what the market wants and less on what you want to sell. There are always things that are in high demand right now and people want those things to be done well. Think garbage disposal, energy production, healthcare products, products from dying industries, etc. Also, the reassurance of having a secure customer base shouldn’t be overlooked. Your business should offer what people really need right now, and you should focus on making sure your products and services are either the best, the most cost-effective, or unique.

Start humble.

There is a lot of talk about “appearance appropriate”. But appearance doesn’t help much when it’s costing you an arm and a half leg and you don’t have clients to recoup it. Get a great suit that you can wear every day to meet with clients and that will give you confidence, but be careful with office furniture and other similar investments for now. Here are a few suggestions to get you started: Consider renting a fully stocked temporary office that you share with others and that is cleaned regularly. Only spend as much time in the office as necessary to save on costs. If you have your own office, rent the interiors or buy them cheaply at auctions. Lease everything that needs constant updating. Computers are number one in this group. Keep the costs for your staff strictly under control from the start. Fly economy class. Or use Skype – or other options – for a virtual meeting to avoid flying altogether. Be eco-efficient and always turn off unused devices. Save the planet and your wallet.

Keep an eagle eye on your company’s cash flow.

This is the moment in your life when obsession is a good quality. Every penny counts, and if it doesn’t end up in your savings account or back into your business, it ends up in someone else’s pocket. Don’t neglect the viability of your business. Always pay attention to what is not working and try to counteract it as quickly as possible. Don’t neglect the mundane but essential tasks of running a business, such as schedules, taxes, petty cash, invoicing, etc. Perform these activities with clockwork regularity, or hire someone who knows how to do it. Deal with bad debts as soon as possible. They won’t go away on their own, so the sooner you face them the better.

Get the most out of your company.

You only have to pay attention to three things. First, know the strengths of your business that make it unique, or at least have unique value. Then find a market – a certain group of people – who want to use the services you offer. Ultimately, you just have to make sure that your target group will also spend money on your service.

Define your brand.

A brand is nothing more than a belief system that people have about you and your company. People like to do business with people or companies who they believe can solve certain problems for them. You must be seen as the solution to these problems.

Create your business model.

Your business model should be based on either high customer loyalty or high convenience/convenience. If you focus on high customer loyalty, you will have fewer customers, but they will pay well. For example, you need 100 customers at $10,000 each to make $1 million. If you are concerned with high convenience, you will have many customers who will only spend small amounts of money with you. In this case, you need e.g. 100,000 customers paying €10 each to make €1 million.

Decide on an exit strategy.

The easiest way to make $1 million is to start a business that you can later sell. A business can often be sold for twice its annual earnings. So if you make €500,000 a year, you can sell your business for €1 million. In short, you need a business that makes around $40,000 a month.

Get more profit from your customers.

To generate more income as quickly as possible, you can sell additional products and services to existing customers. Find ways to add value and sell those products and services to your existing customer base.

Create a system and scale it up.

That’s the whole secret to massively increasing your income. For example, if you have a product that you’re selling for $100, and you know that a $50 ad spend will reliably guarantee a new sale, you have a winning model—as long as you’ve chosen a large enough market. enlarge

Hire good people.

One of the most important factors in going from a €60,000 annual salary to a multi-million dollar company is having the right workforce. This is exactly why very large companies are so focused on team building and good business management. You can only have a great team if you are also a great boss.

 

About the Author

Dylan Roberge

Dylan Roberge is a San Francisco-based writer and editor with over a decade of experience covering money saving and deal hunting. Before going freelance, he got his start as an editor at Yahoo Finance. These days he writes about mobile, tech gadgets, and lifestyle subjects for a variety of publications.