Steps To Becoming A Millionaire
Becoming a millionaire is definitely within reach of those who start young and develop the right habits. And anyone, at any age, can develop the traits that increase wealth and decrease debt. The truth is, unless you're lucky enough to receive a sizable inheritance, you'll need to navigate your own route to prosperity. There is certainly nothing like free lunch, and everything has to come with a price. There are no shortcut ways to success as many believe might exist. All around our life, there are principles that guides everything we do, everything want to do and anything we desire to acquire.
To become rich, you need to identify the right principles to riches and follow them with all the vigor in you. Most of these principles are as follows;
- Develop A Written Financial Plan
Saying you want to be wealthy isn't good enough. You need to come up with a workable plan and put it on paper. Investing to become rich and the millionaire you desire is a plan and certainly not a product. Note that a plan is not really a plan until it is in writing and you can show it to someone.
Welch identifies that "The written plan forces you to do something". "Calculate what you need to earn and how to invest. The plan isn't just the goal, it's the whole thing -- the dream, the goals, the options. Most people do actually have a plan, but they fail to become rich because their plans are too complex to follow, for the fact that they too desperate to make money. Complex plans don’t guarantee your success.
A plan needs to be a very simple one that will be so easy to follow, that you can always go by no matter the situation changes. If you come out with a good plan that you can always follow, then you are on your first step to becoming rich. This is true because every other action you will take will emerge from your plan.
- Develop A Savings Habit
The end result of your financial plan should be systematic investment. Get in the habit of saving money. Build an emergency fund in a money market account so you don't have to raid the rest of your savings and investments when there's an unexpected major expense. Make it a point to save at least half of every pay raise.
There is no way you will become successful in your investment to become a millionaire if you don’t have the necessary habit of saving. Before you invest in any venture be it financial or capital, you need to save certain proportion of your income. It is savings that accumulates your investment fund. It’s not easy developing a strong savings habit but until you have that attitude, your financial freedom is never guaranteed.
- Live Below Your means
To break Parkinson’s Law, you have always live below what you earn. It should be the ultimate desire of every growing youth not to allow this law work on you. Avoid unnecessary spending and spend your money on things that will bring you more money, and the more money you make, will make you more money.
Don't be a walking billboard for overpriced designer clothes, shoes, sunglasses or jewelry. Don't allow your house or car payments to be budget-busters.
One big thing is that the poor and the average are different from the rich because of the kind of expenses they make and what they spend their money on. It is a known fact that poor and the average are where they are because they spend their hard earned money in buying stuffs and liabilities, while the rich spend on assets.
- Make Your Money Work For You
It takes money to make money, but that doesn't mean you need a lot to invest. Open an account with a mutual fund company that has no-load funds and low expense ratios.
Build a diverse portfolio and you can reasonably expect to earn a cool return annually on your investments over the long haul. There are lots of investment companies in Ghana today for which you can comfortably pick an investment product to begin with.
At a point in time if you are very patient with your investments, you will no longer need to work hard for money anymore. The returns on that investment will keep growing and growing that you have enough to even delve into other investment opportunities.
I have done this and I tell you it’s perfectly working for me. I honestly didn’t get the opportunity for that amount of money again ever since, but I made a good decision to invest that money and forgone all other things I could have used that money for. And now the beauty of that investment is so amazing. Over just a period of one year, the investment gave a good return that I used to start another investment with a different firm. That same investment is again currently funding the account of a third investment every month. So you see, the decision to begin is difficult but try to overcome your fears. It is only the first million that is the hardest.
- Start Your Own Business
Many people have ideas that could make them rich beyond their wildest dreams. The problem is, most people have never been taught how to put a business structure inside their ideas and so many of their ideas never take shape or stand on their own.
If you want to be one of the 10% that makes 90% of the money, you will need to know how to build a business structure inside your creative ideas.
In the 1996 book "The Millionaire Next Door: The Surprising Secrets of America's Wealthy," the authors state that two-thirds of the millionaires are self-employed, with 75% of them entrepreneurs, and the remainder professionals, such as doctors and accountants.
Forget inheriting a pot of money; entrepreneurs create most of the wealth in the country. Most millionaires in the making, 8 out of 10, earned or increased their assets on their own- a 2015 survey by Fidelity Investments found.
More than just knowing how to create assets that buy assets, one of the main reasons the richest of investors are able to become richer is because they know how to turn their ideas into millions and maybe even billions of monies. The average investor may have excellent ideas, but they often lack the skills to turn their ideas into assets that buy assets.
- Get Professional Advice
One best way to being on the roadmap to riches is getting professional advices on your investments.
You need to have qualified trained personnel in the field to be assisting you with how to go about it, to look at your investment plans and goals. A good financial planner can help you fill your portfolio with the right investments and dump the wrong ones.
You don't need to relinquish control, but you do need to form a good working relationship with someone who has expertise in this complicated area.
Most great millionaires have financial advisors who coaches them and review their portfolios regularly. Maybe finding the right adviser could be quite expensive. If you can't afford to have a financial planner to manage your money, many of them will review your portfolio and make recommendations for a one-time fee.
However, at the beginning you can try to manage your money yourself but as you progress, you will definitely have to get one or consult one on needed basis to keep you on track in times of complexities. It’s very important...!!
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