What are the 4 Things you Need to do to Guarantee you Become a Millionaire?Oct 03, 2023
Imagine waking up one day, looking at your bank account, and seeing a balance with seven figures. It's a dream many of us have, but for most, it seems unattainable. However, becoming a millionaire is not just reserved for the lucky few – it's a goal that anyone can achieve IF you have the right mindset, strategies, and network.
I have broken it down in 4 Major Areas you NEED to start to work on that I have found EVERY Millionaire has:
Step 1: Know Your Numbers
If you ask anyone who is successful what there monthly income or expenses are. Chances are they will be able to give you a good idea of what that is. Flip that around, and you may get a blank face.
It sounds so simple, yet many people dont even look at their finances. Remember what you focus on expands. You need to know where you stand in terms of income, expenses, and assets in order to make informed decisions and set realistic goals. Here are three key areas to focus on:
- Income: Take a close look at your income sources and determine if there are any opportunities to increase your earnings. Can you negotiate a raise at your current job? Is there a side hustle you can start? Consider all possibilities and be proactive in finding ways to boost your income.
- Expenses: Analyze your spending habits and identify areas where you can cut back. Are there any unnecessary subscriptions or memberships you can cancel? Can you reduce your dining out expenses or find more affordable alternatives? By being mindful of your expenses and making conscious choices, you can save a significant amount of money.
- Assets: Take stock of your assets, such as savings accounts, investments, and properties. Assess their value and potential for growth. Are there any assets that are underperforming or not aligned with your goals? Consider reallocating your resources to maximize their potential and generate higher returns.
By knowing your numbers, you will have actual data to build upon and make informed decisions as you progress towards your millionaire goal.
Step 2: Save Money, Don't Get Caught in Debt Traps
The old keeping up with the Joneses. I have fell into this and watch as you appear rich but look in your account to see that its the opposite. However, it's not just about saving for the sake of it – you need to be strategic and avoid falling into debt traps. Here are three important tips to keep in mind:
- Budgeting: Create a budget that aligns with your financial goals. Set aside a portion of your income for savings and investments. Be mindful of your spending and make sure you are living within your means. Consider using budgeting apps or spreadsheets to track your expenses and stay on top of your finances.
- Emergency Fund: Build an emergency fund to cover unexpected expenses. Aim to save at least three to six months' worth of living expenses. This will provide you with a safety net and financial peace of mind, allowing you to focus on your journey towards becoming a millionaire without worrying about unforeseen setbacks.
- Avoid Debt: Be cautious when it comes to taking on debt. While certain types of debt, like a mortgage for a property, can be considered an investment, high-interest debts such as credit card debt can hinder your progress towards wealth accumulation. Prioritize paying off any existing debts and avoid unnecessary borrowing.
By saving money and avoiding debt traps, you will have more resources at your disposal to actually go INVEST in ASSETS.
Step 3: Invest in Assets
What are assets? Assets are things that you invest in that will make you money. Is a Car that depreciates an asset? No. Is a Stock that pays you dividends an Asset? Yes.
Gone are the days you can just save your money in a pillow case and be rich one day. You can thank Inflation for that.
BUT the real reason you invest in assets is so you DONT HAVE TO WORK FOREVER. These assets should eventually be able to support your lifestyle, leave a legacy, or help you create more assets.
Here are three asset classes you should consider:
- Stocks and Bonds: Investing in the stock market and bonds can provide you with long-term growth and income. Research different companies and industries, diversify your portfolio, and consider seeking advice from financial professionals. Keep in mind that investing in stocks and bonds involves risks, so it's important to do your due diligence and make informed decisions.
- Real Estate: Real estate has long been a popular investment choice for wealth accumulation. Consider purchasing rental properties or investing in real estate investment trusts (REITs). Rental income can provide a steady cash flow, while property values may appreciate over time. However, be prepared for the responsibilities and challenges that come with being a landlord.
- Entrepreneurship: Starting your own business can be a powerful wealth-building strategy. Identify a market gap or opportunity, develop a unique product or service, and execute a well-thought-out business plan. Entrepreneurship requires dedication, perseverance, and a willingness to take calculated risks, but the potential rewards can be immense.
Remember, investing in assets requires patience and a long-term perspective. It's important to do your research, seek professional advice if needed, and diversify your investments to mitigate risks.
Step 4: Invest in Your Network
You hear it all the time but your Network really is your Net Worth. While financial investments are crucial, it's equally important to invest in your personal and professional network.
Most ways to create wealth are done because of relationships. The first time I heard that, I thought that was a bunch of bull. BUt now a little older, a little wiser. It is so true.
Here are three reasons why building a strong network can help you become a millionaire:
- Opportunities: Your network can open doors to new opportunities, whether it's a potential business partnership, a job offer, or an investment opportunity. By connecting with like-minded individuals and industry experts, you increase your chances of stumbling upon lucrative opportunities that can accelerate your wealth-building journey.
- Knowledge and Advice: Surrounding yourself with knowledgeable and successful individuals allows you to tap into their expertise and gain valuable insights. Learn from their experiences, seek their advice, and leverage their knowledge to make informed decisions and avoid costly mistakes.
- Support and Motivation: Building a strong network provides you with a support system of like-minded individuals who understand your goals and can offer guidance during challenging times. They can provide encouragement, motivation, and accountability, keeping you focused and driven on your path to millionaire status.
Investing in your network requires time and effort. Attend industry events, join professional organizations, and actively engage with individuals who share your interests and aspirations.
There really isnt a crazy strategy you need to follow to do this. Its so easy! Just 4 steps. These 4 steps take a little time and habit building but if you follow these, I can guarantee you will be able to accomplish your millionaire dreams. Once you do that, you will be why you set the goal so low ;)
Appreciate you reading to the end and enjoy the journey!