Want to become a millionaire, Follow these rules
Honestly you want to be a millionaire? It is awesome and very wise of you! but you are wondering how to bring your dreams to reality.
Maybe you listen to well known personalities talk about their success stories, finding out, you noticed that they had high-paying jobs, won big in lottery or inherited their wealth from their parents and you might be thinking they’re lucky? and wished you were them?.
It will be fantastic today to realise you can become a millionaire – it will have nothing to concern your parents wealth or the school you attended, rather, it’s got to do with you.
Few tips to becoming a Millionaire!
Following these steps will make you a millionaire:
1. Making early and consistent investment
Investing early will make you wealthy within a short period, compound interest can be a way.
At the age of 25 you could be saving $300 a month, for instance, with 10% rate of return, you could attain millionaire level at 60 with $2.3 million nest egg come retirement at 67, that’s just what saving $300 a month will do for you.
If you start to invest at 35, you’ll need to put in $800 a month to attain millionaire status at 60.
On a different level and aspect,
Having invested $300 a month for 40 years starting from your 25 years of age with a 10% of return, you would be making $1.9 million.
If you invested $300 monthly at 35, you will have $678,145 at 65 and it’ll take you 5 years of work to make $1,000000. What are you waiting for? you could start now, I guess.
2. Your income needs to be increased for faster goal attainment
To become a millionaire, you need not a six-figure salary.
If you have the kind of job that gives you that kind of salary, and cannot still save 15% the need to increase your income comes in so you would be able to save 15%.
You can achieve this by requesting for gulp or look for job that pay higher. You can start a side hustle or have multiple jobs. Skill acquisition can also help to boost your earning.
Becoming a licensed practical nurse (LPN), a certified nursing assistant (CNA), an advanced practice registered nurse (APRN) or registered nurse (RN) is not a bad idea. A year an RN makes around $75,000.4,5 and an LPN makes around $49,000.
Those jobs each has their own special training with different salaries.
3. Avoid Debt
Because you need cars, landed properties, jewelry and clothes as collateral, you can acquire a loan to get them.
You might be thinking of having anything you want at anytime and it’s becoming a habit to have it now and pay for it later, forgetting you’ll be paying with interest.
The simple truth is that debt is a hindrance to financial breakthrough. You go down the more anytime you purchase things on credit; the money you will be paying back is what could be used for future investment.
Assuming you got a car through a loan which you have to be paying $577 monthly for period of 5 years and 9 months. Having invested $500 monthly for 5 years, you would have $40,000 and investing that $40,000 for 20 years you would have more than $293,000.
At the end, that car you bought then, within 25 years it must have spoilt and forgotten. Debts should be avoided at all cost. If you must obtain a loan, let it be for investments.
4. Savings should be your major concern
The amount of money you invest is just as important as the actual act of investing itself, if you want to be a millionaire.
It has been said that the 15% of your income should be saved for your retirement. What if you decided to save 5%?.
If 5% is taken out from $69,000 income it will sum $3,450 a year and around $288 a month. Having invested over 30 years, getting 10% return it could amount to $651,000.
That amount could look enticing but a couple would be needing $300,000 to foot their medical expenses during their retirement, the amount excludes their long-term care.
If the amount subtracted from the total investment amount you would have $351,000 as change. Then ask yourself if it could sustain you for 2 decades?
Had it been that 15% of that $69,000 income is invested, $10,350 could be saved yearly. 30 years or more, you could be saving $1.9 million if you have 10% return
5. Stop spending unnecessary
Let all your spendings be purposeful. Make time to always check your expense lists, you could check when some expenses could be cut when you check your budget list.
You can check out these areas
You should spend money on gifts wisely. Buy gifts for family or friends when necessary and not to go for most expensive items or buying beyond your purchasing power.
An independent agent agent can help you know the areas where you can save. You could get better rates when you purchase a car, also houses and others.
Few of those monthly subscriptions should be curtailed. I mean the Gym memberships, streaming music services, magazine subscriptions and others.
You can stop cable subscriptions and start using Hulu and Netflix and start watching your favourite shows.
You could save mega amount when you stop eating in the restaurants and start making your meals at home! Try this and see the outcome.
Having applied the above ideas, and still not satisfied, you could move to a home with little mortgage payment and cheaper utility bills, living in town or city where the cost of living is more affordable could help.
The efforts you put will help you achieve your dreams of becoming a millionaire. Don’t stop applying these tricks even if you actually become a millionaire at last as you could go back being poor, it could amaze you that most millionaires also make use of coupons during shopping.
6. Look into Real Estate investment
When a house is purchased for $200,000 and sold at $300,000, $100,000 has been made.
Real estate is, lucrative, an essential wealth-building tool in United States as property values tend to increase over time.
7. Look for a Financial Advisor to work with
You might be greatly needing a financial Advisor in you journey of becoming a millionaire
A financial Advisor will hint you on the best investments to embark on helping you define your financial goals
Before you start working with a financial Advisor, you should interview them to know if they’re fit for you. someone who operates as a fiduciary is recommended. Your best interest should be his priority.
During the interview with a financial Advisor, you can ask these questions:
Do you provide comprehensive financial planning?
How are you compensated?
Are you held to a fiduciary standard at all times?
8. Be passionate about your Work
You have to work if you need to be a millionaire!. You need a work you’ll enjoy doing so as not to get tired of it. Work motivation is enticing.
Loving the work you do, will make you be more productive which will help the business grow.
9. Know your targets and always chase them
Do not be carried away by what you see your friends or family buy or how the spend money lavishly, just know you’re heading to somewhere and your plans and their are not same.
Do not be deceived by what you see on social medias – wanting to live like the Celebrities or to impress people.
Be focused on what to invest in, how to boost your income and attain your goals.