Ways To become a Millionaire or How Millionaires Got Rich
(Do read the blog till the end for a secret study how to become a millionaire)
3-Step strategy to become millionaire :-
According to interviews of millionaire with Business insider. The 3-Step strategy was common in almost all the interviews with the millionaires.
Those 3 strategy are reveled down and some secret tips.
- John, who runs the personal-finance blog ESI Money, has spent the past few years interviewing millionaires.
- He found that many employed a simple three-step strategy to build wealth: Earn good money, save it, and invest it.
- Contrary to popular belief, it doesn’t take a lucky big risk or an inheritance to become a millionaire.
Simplicity Is Key
John, who doesn’t share his last name online, interviewed 100 millionaires over the past few years and found that nearly all of them built their wealth in three simple steps, or what he calls “the old-fashioned way.”
“They earned a lot, saved a ton, and invested for a long time,” he wrote. This is in contrast to the common belief that most millionaires inherit their wealth or got lucky with big risks, he said, though one or two of his interviewees did get rich that way.
The median net worth of millionaires John interviewed was $2.3 million. While 90% of them were men, 93% were married, so John said he considered the women millionaires as well. The median age of the people he surveyed was just under 50.
Secret tips to become millionaire:
There are nine secret tips to become a millionaire are:
1. Develop a written financial plan.
“the failure of those who do not follow a plan is unrelated to their wealth.”
When creating a financial plan:
- Focus on what matters most and don’t obsess over the past.
- Focus on what you control by listing your known expenses first in your budget, and with the income left over, list the discretionary categories.
- Focus on your future by anticipating how much your future self will need to survive.
2. Focus on increasing your income.
“In today’s economic environment you cannot save your way to millionaire status,” wrote Grant Cardone, who went from being broke and in debt at the age of 21 to becoming a self-made millionaire by 30. “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.
The best way I know to become a millionaire is to put the power of compound interest on your side. By giving your money more time to compound and keeping your rate of return as high as possible, you greatly increase your chances of reaching a seven-figure net worth,” Brian Feroldi wrote on The Motley Fool.
4. Increase your streams of income.
After studying the very wealthy for five years, author Thomas Corley discovered that 65 percent of self-made millionaires he studied had three streams, 45 percent had four streams and 29 percent had five or more streams. 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.
If you want to become a millionaire, then you absolutely need to get into the habit of saving by contributing to your 401(k), Roth or traditional IRA, and contributing to an emergency fund that’s been placed in a money market fund. However, 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. “You don’t just need to be a master in your field; you need to be a well-rounded genius capable of talking about any subject whether it is financial, political or sports-related. 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. They don’t spend excessively on designer and luxury items. They use coupons. 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. This isn’t exactly a new philosophy. It’s been around ever since Andrew Carnegie embraced the Master Mind principle.
“Exposure to people who are more successful than you are has the potential to expand your thinking and catapult your income,” said Siebold. “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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