Being a millionaire is everybody’s wish. But nobody wishes to pay the price in advance to be at the stage they wish too. Many people get excited after listening to motivational content that they have heard or read but hardly any of them put efforts in applying the same. It’s you who have to turn what you learnt into actions, tasks, steps or activities.
Also, the fact is that your income grows as quickly as you do. So, to become a millionaire you need to achieve the mindset of becoming a millionaire. Once, you get the millionaire mindset you can’t lose it, no matter what financial or business mistakes that have been made along the way. To reach that place, there has to be a structure that you need to keep in mind.
Below are five tips to become a millionaire that we have curated that you should follow to ultimate guide to business strategies also. Have a look:
Evaluate the Financial Status and Work on Increasing Your Income
To grow financially, you need to know where you currently stand. To know where you stand, you need to put everything on paper. You need to keep records about the amount you earn versus the amount you spend and curate a financial plan that would help you in future.
So, after creating the plan you have realized that you are not happy with your spending and incomes, that’s the time when you need to make a positive change in it. To create a plan, you need to:
- Have a complete understanding of your income.
- Make a plan about how much you need to spend.
- Have an idea about where you could save.
- Write your financial goals.
Once, everything is listed and financial goals have been set, it’s time to look out how you going to achieve it. Practically, you can’t become a millionaire by cutting on the daily coffee. Rather you need to work on how you going to increase your current income. Initially, look for opportunities with your current employer. Maybe promotions are going on in your office or there is an opening for a new position in the company for which you might be suitable. Apart from it, you can do something on your side to generate more income.
Think of A New Revenue Stream and Save
You might have observed that people who are rich and successful hardly have one single source of income. Many of them have more than two sources of income. Apart from your nine to five job, you can do something as your side business to generate some income every month. It includes:
- Working as a freelancer in your field of expertise.
- Can indulge in teaching or mentoring.
- Conducting guest lectures.
- Maintaining a blog of your own
- Opening an online store
- Doing a part-time job.
Truly, there are varieties of options you could choose from. Once you have got your income track, you can build strategies to split your income. It could include:
- Cost of living like bills, rent, grocery shopping, mortgage etc.
- Personal expenditure like dinners, holidays, cinemas etc.
- Savings: You can split your savings into two subcategories I.e. retirement savings plan and emergency savings plan.
So, the best way in which you can organize your finances is to plan them. Once, you made the plans about how much you are going to save. Immediately make direct debit from your current account to the savings account. To avoid any temptation of spending, schedule the direct debit to leave the current account on the day you receive your payment. It’s recommended to put 5 percent of your earnings into an emergency fund and 10 percent of your earnings into your retirement fund depending on how much you earn.
Start Learning New Things and Seek Opportunities
Learning is about enhancing yourself to do your job more properly. Simply a way for you to become an expert in your current field. Also, learning helps you discuss the topics with your colleagues or professionals in a broad manner. Hence, allowing me to become a well-rounded intellectual.
Though, you can learn every day. There is no time and age to learn. You can learn through simply:
- By reading more
- Listening to podcasts
- Doing an online course
- Attending events and conferences.
However, you need to seek opportunities. Indeed, opportunities won’t come to you while you are sitting and doing your job. You need to go out there and seek them. These days, the more you outshine yourself the more people would know about you. You need to have your name heard so that people think of you as a suitable candidate when the job pops up.
Alternatively, if you have a business idea in your mind that you are trying to implement for a long time because of your commitment to your day job. There are a lot of avenues in which you can start your own thing, you can start a franchise, or a consultancy firm, or marketing agency, etc. All you need is a passion for that idea. In this case, all you can do is invest your spare time in developing it. Once, your idea is up and successful then it could become a million-dollar chance for you.
Live A Frugal Lifestyle and Avoid Debts
Indeed, rich people don’t have their fortune just by spending away from the money and buying fancy houses and cars. At least, not in the start. If you aim to be a millionaire, then you need to start living a frugal lifestyle. Where you need to cut down your spending by avoiding any sort of unnecessary expenditure like purchasing branded products. Alternatively, you can do is:
- Start using coupons instead.
- Look for freebies.
- Buying supermarket’s own-brand products.
- Start using public transport instead of a taxi or car
- Cook your meals rather than going into restaurants.
Also avoiding debts is the best way to become a millionaire. There is a difference between mortgage and credit card. A mortgage is an investment that you make for yourself and your family. Whereas, a credit card bill is an expenditure that you have made without realizing in the first place that you could pay it back or not.
It’s always recommended to treat your credit card as an emergency usage thing rather than using it for luxury. For starters, avoid carrying a credit card while you go for shopping and also cut off any shopping accounts that you have from your credit card. This would make you think twice before making any purchases.
Embrace Nothingness and Build Network
It’s okay to be bored and have a lot of spare time in hand. This is a good thing because it’s a great way to focus on more productive matters. When you are bored and have nothing to do then you can either:
- Start reading a book
- Indulge in meditation
- Or simply cook a meal for yourself.
Also, you might have often heard that “it’s not what you know but who you know.” You’ll often see that a successful person meets often successful people only irrespective of the fact that they are in the same field. Nutshell, you should start indulging with people who have the way to catapult you to success. It’s true that you only need to find out your best industry icons and meet them.
To become a millionaire, you need to change your mindset and attitude towards everything. You can’t be a millionaire by sitting in the same chair every day. It’s better to start your day with a goal in mind. With these small steps, you can achieve whatever you wish to.
Rushin is a finance geek and a small business owner. He started FranchiseKaro.in where he blogs about starting and running franchise businesses. It’s an initiative to help people with starting and running businesses.